Refer to the financial statements of Tootsie Roll Industries and the Notes to Consolidated Financial Statements in Appendix A.

Instructions Answer the following questions about current and contingent liabilities and payroll costs.

(a) What were Tootsie Roll’s total current liabilities at December 31, 1998? What was the increase/decrease in Tootsie Roll’s total current liabilities from the prior year?

(b) How much were the accounts payable at December 31, 1998?

(c) What were the components of total current liabilities on December 31, 1998 (other than accounts payable already discussed above)?

COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey Foods