The financial statements of Hershey Foods are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A.

Instructions

(a) For each company calculate the following values for 1998:

(1) Working capital.

(2) Current ratio.

(3) Debt to total assets ratio.
(4) Profit margin ratio.
(5) Return on assets ratio.

(b) Based on your findings above, discuss the relative liquidity, solvency, and profitability of the two companies.
RESEARCH CASE