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

(b) Totals $1,196,810

(c) Net income $72,440

(d) Total assets $259,060 BROADENING YOUR PERSPECTIVE (are 468 CHAPTER 9 Reporting and Analyzing Long-Lived Assets Instructions Answer the following questions.

(a) What were the total cost and book value of property, plant, and equipment at December 31, 2004?

(b) What method or methods of depreciation are used by Tootsie Roll for financial reporting purposes?

(c) What was the amount of depreciation and amortization expense for each of the 3 years 2002-2004? (Hint: Use statement of cash flows.)

(d) Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased (capital expenditures) in 2004 and 2003?

(e) Explain how Tootsie Roll accounted for its intangible assets in 2004.

(f) Read Tootsie Roll’s note 8 on commitments. Does the company primarily engage in capital leases or operating leases? What are the implications for analysis of its financial statements?

COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey Foods