The financial statements of The Hershey Company appear in Appendix B, following the financial statements for Tootsie Roll in Appendix A.

Instructions

(a) Based on the information in the financial statements, compute these 2009 values for each company. (Do not adjust for the LIFO reserve.)

(1) Inventory turnover ratio. (Use product cost of goods sold and total inventory.)

(2) Days in inventory.

(b) What conclusions concerning the management of the inventory can you draw from these data?

RESEARCH CASE