12-51 Common-Size Statements (Alternate is 12-43.) Exhibit 12-17 contains the income statements and balance sheets of The Hershey Company for the years ended December 31, 2011, and December 31, 2010. Hershey is a manufacturer of chocolate and sugar confectionery products. The company's principal product groups include chocolate and confectionery products; food and beverage enhancers, such as baking ingredients, toppings, and beverages; and gum and mint refreshment products. 1. Prepare common-size statements for Hershey for 2011 and 2010. 2. Comment on the changes in component percentages from 2011 to 2010 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. 1. Compute the following ratios for 2011: (a) current, (b) average collection period, and (c) inventory turnover. Assume all sales are on credit. 2. 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 Page 588 of 598 12-51 Common-Size Statements (Alternate is 12-43.) Exhibit 12-17 contains the income statements and balance sheets of The Hershey Company for the years ended December 31, 2011, and December 31, 2010. Hershey is a manufacturer of chocolate and sugar confectionery products. The company's principal product groups include chocolate and confectionery products; food and beverage enhancers, such as baking ingredients, toppings, and beverages; and gum and mint refreshment products. 1. Prepare common-size statements for Hershey for 2011 and 2010. 2. Comment on the changes in component percentages from 2011 to 2010 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. 1. Compute the following ratios for 2011: (a) current, (b) average collection period, and (c) inventory turnover. Assume all sales are on credit. 2. 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 Page 588 of 598