Exhibit contains the income statements and balance sheets of The Hershey Company for the years ended December 31, 2011, and December 31, 2010. Hershey manufactures and sells products under more than 80 brand names EXHIBIT The Hershey Company Years Ended December 31, 2011, and December 31, 2010 (S in thousands, except CONSOLIDATED BALANCE SHEETS Current assets: Cash and cash equivalents Accounts receivable-trade Inventories Deferred income taxes Prepaid expenses and other 693,686 884,642per share data) 399.499 648,953 136.861 390,061 533,622 Total current assets 2.046.558 1,559,717 516,745 111.913 38,544 2.005,217 1,437,70 524.134 123.080 21,387 Property, plant, and equipment, net Other intangibles Deferred income taxes Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of longterm debt 420.017 612,186 1899 42.080 97,593 1,173,775 1.748,500 410.655 593,308 9.402 24,088 Total current liabilities 1,298,845 1,541,825 Long-term debt Other long-term liabilities Total liabilites 3,539.551 3335.131 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 299.269 299,195 2011 and 60,706.419 in 2010 Additional paidin-capital Retained earnings Treasury Common stock shares, at cost: 60,632 490,817 4,699,597 60.706 434.865 4,374,718 134,695,826 in 2011 and 132,871,512 in 2010 The Hershey Company stockholders' equity Total stockholders' equity 4,258,962) (4,052,101) Accumulated other comprehensive loss Noncontrolling interests in subsidiaries Total liabilities and stockhoklers' equity (442-331 215,067 902,316 849.022 1. Compute the following ratios for 2011: (a) total-debt-to-total-assets, and (b) total-debt-to- total-equity. To be consistent with the source of industry data used in the problem, define total debt as short-term debt and long-term debt (including the current portion) only. This definition is not the one we have used in the text, so it is worth emphasizing that it does not include items such as accounts payable and accrued liabilities; only the items specified 2. Assess Hershey's solvency 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. Seea description of the food processing industry in problem 12-52 Tootsle Roll Reuters Averages (as of August 31, 2012) Not available 46.05% *Tootsie Roll has no debt in its capital structure! In fact, total liabilities are only 22.4% of total December 31, Total-debt-to-total-assets Total- debt-to-total shareholders' equity 0.0%
