Cash Flows Statement of Tootsie Roll Industries, Inc.

Refer to the 2020 Annual Report of Tootsie Roll Industries, Inc. to answer the questions in this part. Consider only the information provided in the Statements of Earnings, Financial Position (Balance Sheet), and Cash Flows. Amounts are presented in $ thousands. Answer the following questions.

1. Estimate cash collected from customers during fiscal 2020. Assume that only "Accounts receivables trade" relates to customers and that product sales are presented net of bad debt expense.

2. Estimate cash paid to suppliersduring fiscal 2020.Assume that all accounts payable relate to suppliers.

3. Assume the Company measures bad debt expenses as 3% of beginning gross accounts receivables trade. Calculate the amount of bad debts written off during fiscal 2020.

4. How much did the Company pay in total cash dividends during fiscal 2020?

5. How much did the Company pay to repurchase shares during fiscal 2020?

CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings TOOTSIE ROLL INDUSTRIES. INC. AND SUBSIDIARIES 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 Earnings from operations Other income. net Earnings before income taxes Provision for income taxes Net earnings Less: net earnings (loss) attributable to noncontrolling interests Net earnings attributable to Tootsie Roll Industries. Inc. Net earnings attributable to Tootsie Roll Industries. Inc. per share Average number of shares outstanding Retained earnings at beginning of period Net earnings attributable to Tootsie Roll Industries. Inc. Adopted ASUS (See Note 1) Cash dividends Stock dividends Retained earnings at end of period (in thousands except per share data) For the year ended December 31, 2020 2019 2018 $ 467.427 $ 523.616 $ 515.251 3.636 3.497 3.669 471.063 527.113 518.920 299.710 329.102 329.880 992 995 867 300.702 330.097 330.747 167.717 194.514 185.371 2.644 2.502 2.802 170.361 197.016 188.173 112.117 127.802 117.691 58.244 69.214 70.482 18.018 16.190 2.724 76.262 85.404 73.206 17.288 20.565 16.401 58.974 64.8.39 56.805 (21) (81) (38) $ 58.995 $ 64.920 $ 56.893 $ 0.89 $ 0.96 $ 0.84 66.512 67.416 68.072 3 40.809 5 33.767 5 57.225 58.995 64.920 56.893 2.726 (23.739) (23.371) (22.929) (43.753) (34.507) (60.148) $_ 32.312 $_ 40.809 $_ 33.767 CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands) Assets December 31, 2020 2019 CURRENT ASSETS: Cash and cash equivalents $ 166,841 $ 138,960 Restricted cash 415 380 Investments 42,090 100,444 Accounts receivable trade. less allowances of $1,694 and $1,949 41.209 45.044 Other receivables 3.894 3.418 Inventories: Finished goods and work-in-process 35,583 35.909 Raw materials and supplies 23.996 23,179 Prepaid expenses 6,844 5.996 Total current assets 320.872 353,330 PROPERTY, PLANT AND EQUIPMENT, at cost: Land 21.738 21,740 Buildings 123,883 122,843 Machinery and equipment 422.506 416,625 Construction in progress 14.347 4.427 Operating lease right-of-use assets 858 1,580 583,332 567,215 Less - accumulated depreciation 396.004 378,760 Net property, plant and equipment 187,328 188,455 OTHER ASSETS: Goodwill 73,237 73,237 Trademarks 175,024 175,024 Investments 220,020 153,031 Split dollar officer life insurance 2,514 26,042 Prepaid expenses and other assets 4,525 8,056 Deferred income taxes 1.038 689 Total other assets 476,358 436,079 Total assets $ 984,558 977,864Liabilities and Shareholders ' Equin' December 31. 2020 2019 CURRENT LIABILITIES: Accounts payable 3 13.025 5 12.720 Bank loans 832 747 Dividends payable 5 .948 5 .861 Accrued liabilities 45.099 41.61 1 Postretirement health care benets 544 598 Operating lease liabilities 780 1.062 Income taxes payable 3.793 Deferred compensation 16.945 Total current liabilities 70.021 79.544 NONCU'RRENT LIABILITIES: Deferred income taxes 47.900 7.295 Postretirement health care benets 12.943 13.145 Industrial development bonds 7.500 7.500 Liability for uncertain tax positions 3.351 4.240 Operating lease liabilities 78 5.18 Deferred compensation and other liabilities 79.665 65.973 Total noncurrent liabilities 151.43 7 138.671 TOOTSIE ROLL INDUSTRIES. INC. SHAREHOLDERS' EQUITY: Common stock. 369-479 par value 120.000 shares authorized 39.073 and 38.836. respectively. issued 27.134 26.969 Class B common stock. 369479 par value 40.000 shares authorized 27.012 and 26.287. respectively. issued 18.758 18.254 Capital in excess of par value 706.930 696.059 Retained earnings 32.312 40.809 Accumulated other comprehensive loss (19.815) (20.345) Treasury stock (at cost) 93 shares and 90 shares. respectively (1.992) (1.992) Total Tootsie Roll Industries. Inc. shareholders' equity 763.327 759.854 Nonconttolling interests (227} (2051 Total equity 763 .100 759.649 Total liabilities and shareholdels' equity $ 984.558 $ 977.864 CONSOLIDATED STATEMENTS OF Cash Flows TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands) For the year ended December 31. 2020 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 58,974 $ 64,839 $ 56,805 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 18,184 18,779 18,669 Deferred income taxes (279) 2,832 2,063 Impairment of majority-owned foreign subsidiaries 377 1,126 Amortization of marketable security premiums 1,404 1,282 1,755 Changes in operating assets and liabilities: Accounts receivable 3,483 5,086 (2,445) Other receivables 636 (313) 2,220 Inventories (770) (4,383) 303 Prepaid expenses and other assets 2,961 4,362 9,489 Accounts payable and accrued liabilities 3,849 1,080 1,648 Income taxes payable 3,012 4,336 7,953 Postretirement health care benefits (1,041) (1,478) (2,484) Deferred compensation and other liabilities (15,703) 3,422 3,827 Net cash provided by operating activities 74,710 100,221 100,929 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (17,970) (20,258) (27,612) Repayment of premiums on split dollar life insurance policies 23,527 Purchases of trading securities (3,183) (3,427) (4,378) Sales of trading securities 18,058 795 1,255 Purchase of available for sale securities (109,816) (67,730) (78,377) Sale and maturity of available for sale securities 98,885 75,611 64,602 Net cash used in investing activities 9,501 (15,009) (44,510) CASH FLOWS FROM FINANCING ACTIVITIES: Shares purchased and retired (32,055) (34,116) (19,317) Dividends paid in cash (23,810) (23,460) (22,978) Proceeds from bank loans 3,902 3,582 2,491 Repayment of bank loans (3,883) (3,193) (2,549) Net cash used in financing activities (55,846) (57.187) (42,353) Effect of exchange rate changes on cash (449) 28 501 Increase (decrease) in cash and cash equivalents 27,916 28,053 14,567 Cash, cash equivalents and restricted cash at beginning of year 139,340 111,287 96,720 Cash, cash equivalents and restricted cash at end of year $ 167,256 $ 139,340 $ 111,287