The financial statements of Tootsie Roll are presented i in Appendix ‘ at tthe ‘

end of this book. a Instructions apie Hae

(a) Using the consolidated income statement and balance sheet, identity items s that may result in adjusting entries for prepayments. — ee

(b) Using the consolidated income statement, ‘dentify two ¢ ‘items that may result inadjusting entries for accruals. : 2

(c) What was the amount of depreciation expense Yor 1998 ae 1997? ‘fou will need G examine the notes to the financial statements. ) Where was ee cepreoahen reported? d

(d) What was the cash paid for income foes ee 1998, ae at we bouor ue he ce Consolidated Statement of Cash Flows? What was income tax expense (provision for _ income taxes) for 1998? Where is the remainder ey Sey in the balance sheet? es COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey Foods