The financial statements for Tootsie Roll Industries are presented in Appendix A at the end of this book.

Instructions Answer these questions using the Consolidated Income Statement:

(a) What was the percentage change in sales and in net income from 1997 to 1998?

(b) What was the profit margin ratio in each of the 3 years? Comment on the trend.

(c) What was Tootsie Roll’s gross profit rate in each of the 3 years? Comment on the trend.

(d) What was the operating expenses to sales ratio in each of the 3 years? Comment on any trend in this percentage.

COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey Foods