The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements.

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

Instructions Answer the following questions. (Give the amounts in thousands of dollars, as shown in Tootsie Roll’s annual report.)

(a) What did Tootsie Roll report for the amount of inventories in its Consolidated Balance Sheet at December 31, 1998? At December 31, 1997?

(b) Compute the dollar amount of change and the percentage change in inventories between 1997 and 1998. Compute inventory as a percentage of current assets for 1998.

(c) What are the cost of goods sold reported by Tootsie Roll for 1998, 1997, and 1996?

Compute the ratio of cost of goods sold to net sales in 1998.

| COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey Foods