5-100. Locate Tootsie Roll’s annual report at www.tootsie

.com. Using the 2010 annual report:

a. Prepare a common-size balance sheet and income statement.

b. Compute the following financial ratios:

Profitability

• Gross margin percent

• Return on sales

• Return on assets

• Return on equity Efficiency

• Total asset turnover

• Accounts receivable turnover

• Accounts receivable days

• Inventory turnover

• Inventory days

• Operating cycle Leverage

• Debt to assets

• Equity to assets

• Debt to equity

• Equity multiplier Liquidity

• Current ratio

• Acid test (quick) ratio

• Net working capital Equity

• Book value per share

• Earnings per share

• Price to earnings

• Dividend payout ratio

• Dividend yield

c. Prepare a memo to your professor discussing five key findings revealed by your analysis.