The financial statements of Tootsie Roll are available in Appendix D. The complete annual report, including the notes to the financial statements, is available at www.tootsie.com.Instructions Using the financial statements and notes to the financial statements, answer the following questions. (You will need to look at the statement of cash flows and Note 1 on significant accounting policies to answer these questions.)
(a) What was the amount of trading securities purchased during 2010? What was the amount of its non-trading (available-for-sale) securities purchased during 2010?
(b) Explain what happens if the decrease in an investment’s value below cost is other than temporary?
(c) Explain how Tootsie Roll accounts for its equity method investments