$12-52$ Liquidity Ratios

Exhibit $12-17$ contains the income statements and balance sheets of The Hershey Company,

manufacturer of such well$-$known products as Hershey's chocolate bars, Reese's peanut butter

cups, Almond Joy candy bars, and York peppermint patties.

Compute the following ratios for $2011$: $($a$)$ current, $($b$)$ average collection period, and

$($c$)$ inventory turnover. Assume all sales are on credit.

Assess Hershey's liquidity compared with the following averages for the food processing

industry as provided by Reuters and with ratios computed for Tootsie Roll, a competitor in

the candy manufacturing, marketing, sales, and distribution industry. Reuters provides the

following overview of the food processing industry. The industry consists of "companies

engaged in processing and packaging produce, meats, fish, animal feeds, fruit juices and dairy