The financial statements of Tootsie Roll Industries are presented in Appendix A.

Instructions Answer the following questions.

(a) What was the amount of net cash provided by operating activities for 2009? For 2008?

(b) What was the amount of increase or decrease in cash and cash equivalents for the year ended December 31, 2009?

(c) Which method of computing net cash provided by operating activities does Tootsie Roll use?

(d) From your analysis of the 2009 statement of cash flows, was the change in accounts receivable a decrease or an increase? Was the change in inventories a decrease or an increase? Was the change in accounts payable a decrease or an increase?

(e) What was the net cash used by investing activities for 2009?

(f) What was the amount of interest paid in 2009? What was the amount of income taxes paid in 2009?

COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey