Broadening Your Perspective 10-1 : The financial statements of Tootsie Roll are presented below.

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data) For the year ended December 31 2010 $528,369$517,149 $495,592 2011 2009 Net product sales Rental and royalty revenue Total revenue Product cost of goods sold Rental and royalty cost Total costs Product gross margin Rental and royalty gross margin Total gross margin Selling, marketing and administrative expenses Impairment charges Earnings from operations Other income (expense), net Earnings before income taxes Provision for income taxes Net earnings 3.739 499,331 319,775 521,448 532,505 365,225 1,038 1.088 366,263 350,422 3.211 320,627 163,144 3.098 167,815 3,098 166,242 2,887 108,276 178,704 106,316 171,026 103,755 14,000 0.949 57966 641710 2.946 73,068 16,97420,003-5 $53,063 9,892 $53,157 $43,938 Net earnings Other com prehensive earnings (loss) Comprehensive earnings $43,938$53,063 $53,157 $54,246 $135,866$147,687 $144,949 1.183 $35,198 54/246 $56,002 Retained earnings at beginning of year. Net earnings Cash dividends Stock dividends Retained earnings at end of year 43,938 53,063 (18,360) (18,078)(17,790) (47,175) (46,806) (32,629) $114,269$135,866 $147,687 Earnings per share Average Common and Class B Common shares outstanding 57,892 58,685 59,425 (The accom pan ying notes are an integral part of these statements.) CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) December 31, Assets 2011 2010 CURRENT ASSETS: Cash and cash equivalents Investments Accounts receivable trade, less allowances of $1,731 and $1,531 Other receivables Inventories: Finished goods and work-in-process Raw materials and supplies Prepaid expenses Deferred income taxes Total current assets PROPERTY, PLANT AND EQUIPMENT, at cost: $78,612 $115,976 10,895 35,416 42,676 29,084 6,499 6,499 212,201 235,167 21,939 21,696 107,567102,934 322,993 307,178 Machinery and equipment Construction in progress 2,598 9,243