You are considering making a loan to The Hershey Company. The following information is from the financial statements included in Form 10-K for fiscal years 2012 and 2011 (in thousands of dollars):
Net sales for the year ended:
December 31, 2012 .....................................................$6,644,252
December 31, 2011 .....................................................  6,080,788
Accounts receivable—trade:
December 31, 2012 .....................................................    461,383
December 31, 2011 .....................................................    399,499
December 31, 2010 .....................................................    390,061
The following information is from the financial statements included in the annual report and incorporated by reference in Form 10-K for fiscal years 2012 and 2011 for Tootsie Roll Industries, Inc. (in thousands of dollars):
Net product sales for the year ended:
December 31, 2012 ....................................................   $545,985
December 31, 2011 .....................................................    528,369
Accounts receivable trade, less allowances of $2,142, $1,731 and $1,531 respectively:
December 31, 2012 .....................................................      42,108
December 31, 2011 .....................................................      41,895
December 31, 2010 .....................................................      37,394

Required
Part A. The Ratio Analysis Model
A lender must assess how well a company is managing its accounts receivable before making a loan. The accounts receivable turnover ratio tells us how many times in a year a company collects its receivables. Replicate the five steps in the Ratio Analysis Model on page 344 to analyze the accounts receivable turnover ratios for The Hershey Company and Tootsie Roll Industries, Inc.:
1. Formulate the Question
2. Gather the Information from the Financial Statements
3. Calculate the Ratio
4. Compare the Ratio with Other Ratios
5. Interpret the Ratios
Part B. The Business Decision Model
A lender must consider a variety of factors, including financial ratios, before making a loan. Replicate the five steps in the Business Decision Model on page 346 to decide whether to loan money to The Hershey Company:
1. Formulate the Question
2. Gather Information from the Financial Statements and Other Sources
3. Analyze the Information Gathered
4. Make the Decision
5. Monitor Your Decision