The financial statements of Tootsie Roll are presented in Appendix A of this book, together with an auditor’s report—Report of Independent Auditors.

Instructions Using the financial statements and reports, answer these questions about Tootsie Roll’s internal controls and cash:

(a) What comments, if any, are made about cash in the tego of the independent auditors?

(b) What data about cash and cash equivalents are shown in the consolidated balance sheet (statement of financial condition)?

(c) What activities are identified in the consolidated statement of cash flows as being responsible for the changes in cash during 1998?

(d) How are cash equivalents defined in the Notes to Consolidated Financial Statements?

COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey Foods