Exhibit contains income statements and balance sheets of The Hershey Company. For more than 100 years, The Hershey Company has enjoyed a position as one of North America's largest manufacturers of quality chocolate and confectionery products. Today, The Hershey Company and its subsidiaries export to approximately 70 countries worldwide EXHIBIT The Hershey Company Years Ended December 31, 2011, and December 31 2010 (S in thousands, except CONSOLIDATED BALANCE SHEETS Cash and cash equivalents Accounts receivable-trade 693,686 884,642per share data) Total current assets 2.046,558 2.005,217 1,559,717 1.437.702 516,745 524,134 Property, plant, and equipment, net Other intangbles Deferred income taxes Liabilities and Stockholders Equlty Accounts payable 420.017 410,655 Current portion of loneterm debt 1.173,775 1.298,845 1,748,500 1,541,825 Other longterm liabilities Stockholders' equity: Common stock, shares issued: 299,269,702 in 2011 and 299.195,325 in 2010 Class B Common stock, shares issued: 60,632,042 in 299269 29915 1 and 60,706,419 in 4,699,5974,374,718 Treasury-Common stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 ( 4,258.962) (4,052,101) Accumulated other comprehensive loss 442 331 The Hershey Company stockholders equity Noncontrolling interests in subsidianies Total stockholders' equity Total liabilities and stockhoklers' equity 1. Compute the following ratios for 2011: (a) ROE, (b) gross profit rate, (c) return on sales, (d) total asset turnover, (e) ROA (with after-tax net income in the numerator), and (f) financial leverage ratio. Note that to be consistent with the industry averages used in the problem return on sales and ROA are computed with after-tax net income, not EBIT in the numerator. 2. Assess Hershey's profitability in 2011 compared with the following industry 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. See a description of the food processing industry in problem 12-52. Tootsie Roll (year (as of August 31, 2012) December 31. 2011) 38.75% Return on sales (Net income Sales) 1.11 times Return on assets (Net incomeAssets) Financial leverage ratico