Good evening,

I need help figuring out these problems, and I need you show (the steps, math or calculations) how you got the answer. I only have 3 (tries or times) attempts to get each question correct, so please double check your work before submitting your finished work to me. Please help me if you can. (I'm not great at calculating or preparing amortization tables and schedules). Please get back to me at your earliest convenience once you are sure you are done, thank you. :-)

Question 9 (Problem 10-9A):(Helpful Note: Question #9 starts at the bottom of page #10 & ends at the top of page #12 of the homework document) (Note: I only need 2 parts of the question figured (solved or answered) out with work shown on how you received the answer.)

Wempe Co. sold $3,162,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

Prepare amortization tables for issuance of the bonds sold at 102 for the first three interest payments.

Prepare amortization tables for issuance of the bonds sold at 98 for the first three interest payments.

Question 10 (Problem 10-13A):(Helpful Note: Question #10 begins at the top of page #12 under the end of Question #9 & ends on the same page of the homework document)(Note: I only need 1 part of the question figured (solved or answered) out with work shown on how you received the answer.)

Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a localski hill. On July 1, 2013, Grace was loaned $176,000 at an annual interest rate of 5%. The loan is repayable over 5 years inannual installments of $40,652, principal and interest, due each June 30. The first payment is due June 30, 2014. Graceuses the effective interestmethod for amortizing debt. Her ski hill company?s year-endwill be June 30.

Prepare an amortization schedule for the 5 years, 2013?2018. (Round answers to 0 decimal places, e.g. 125.)

I look forward to receiving help from someone soon.

Thank you very much, and have a wonderful night.

7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Description / Instructions: Complete the following Week 3 Assignment in WileyPLUS: * Problem 97A * Exercise 105 * Exercise 108 * Exercise 1013 * Exercise 1022 * Exercise 1024 * BYP 101 * BYP 102 * Problem 109A * Problem 1013A * IFRS 104 Question 1 During the month of March, Olinger Company's employees earned wages of $82,700. Withholdings related to these wages were $6,327 for Social Security (FICA), $9,691 for federal income tax, $4,006 for state income tax, and $517 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $905 for state unemployment tax. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 Prepare the entry to record the company's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 Question 2 On August 1, 2014, Ortega Corporation issued $843,600, 7%, 10year bonds at face value. Interest is payable annually on August 1. Ortega's yearend is December 31. Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 1 Prepare journal entries to record the accrual of interest on December 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Prepare journal entries to record the payment of interest on August 1, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 1/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Date Account Titles and Explanation Debit Credit Aug. 1 Question 3 Romine Company issued $585,500 of 9%, 15year bonds on January 1, 2014, at face value. Interest is payable annually on January 1. Prepare the journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014 Prepare the journal entries to record the accrual of interest on December 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2014 Prepare the journal entries to record the payment of interest on January 1, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2015 Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2029 Question 4 Cole Corporation issued $442,000, 8%, 24year bonds on January 1, 2014, for $399,094. This price resulted in an effective interest rate of 9% on the bonds. Interest is payable annually on January 1. Cole uses the effectiveinterest method to amortize bond premium or discount. Prepare the schedule using effectiveinterest method to amortize bond premium or discount of Cole Corporation. (Round answers to 0 decimal places, e.g. 125.) Interest Periods Issue date Interest to Be Paid Interest Expense to Be Recorded $ Discount Amortization $ Unamortized Discount $ http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true Bond Carrying Value $ $ 2/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true 1 2 Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014 Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2014 Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2015 Question 5 Nance Co. receives $428,600 when it issues a $428,600, 5%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $20,477 on June 30 and December 31. Prepare the schedule using effectiveinterest method to amortize bond premium or discount of Nance Co. (Round answers to 0 decimal places, e.g. 125.) Semiannual Interest Period Issue date Cash Payment $ Interest Expense $ Reduction of Principal $ Principal Balance $ 6/30/15 12/31/15 Prepare the journal entries to record the mortgage loan. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2014 Prepare the journal entries to record the first two installment payments. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 3/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true First Installment Payment June 30, 2015 Second Installment Payment Dec. 31, 2015 Question 6 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, 2011 2010 2009 Net product sales $528,369 $517,149 $495,592 Rental and royalty revenue 4,136 4,299 3,739 Total revenue 532,505 521,448 499,331 Product cost of goods sold 365,225 349,334 319,775 Rental and royalty cost 1,038 1,088 852 Total costs 366,263 350,422 320,627 Product gross margin 163,144 167,815 175,817 Rental and royalty gross margin 3,098 3,211 2,887 Total gross margin 166,242 171,026 178,704 Selling, marketing and administrative expenses 108,276 106,316 103,755 Impairment charges 14,000 Earnings from operations 57,966 64,710 60,949 Other income (expense), net 2,946 8,358 2,100 Earnings before income taxes 60,912 73,068 63,049 Provision for income taxes 16,974 20,005 9,892 $43,938 $53,063 $53,157 Net earnings Net earnings Other comprehensive earnings (loss) Comprehensive earnings Retained earnings at beginning of year. Net earnings Cash dividends Stock dividends Retained earnings at end of year Earnings per share $43,938 (8,740) $35,198 $135,866 43,938 (18,360) (47,175) $114,269 $53,063 1,183 $54,246 $53,157 2,845 $56,002 $147,687 53,063 (18,078) (46,806) $135,866 $144,949 53,157 (17,790) (32,629) $147,687 $0.76 $0.90 $0.89 Average Common and Class B Common shares outstanding 57,892 58,685 (The accompanying notes are an integral part of these statements.) 59,425 CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) Assets December 31, 2011 2010 CURRENT ASSETS: Cash and cash equivalents $78,612 $115,976 Investments 10,895 7,996 Accounts receivable trade, less allowances of $1,731 and $1,531 41,895 37,394 Other receivables 3,391 9,961 Inventories: Finished goods and workinprocess 42,676 35,416 Raw materials and supplies 29,084 21,236 Prepaid expenses 5,070 6,499 Deferred income taxes 578 689 Total current assets 212,201 235,167 PROPERTY, PLANT AND EQUIPMENT, at cost: Land 21,939 21,696 http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 4/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Buildings Machinery and equipment Construction in progress 107,567 322,993 2,598 455,097 242,935 212,162 73,237 175,024 96,161 74,209 3,212 3,935 7,715 433,493 $857,856 LessAccumulated depreciation Net property, plant and equipment OTHER ASSETS: Goodwill Trademarks Investments Split dollar officer life insurance Prepaid expenses Equity method investment Deferred income taxes Total other assets Total assets Liabilities and Shareholders' Equity 102,934 307,178 9,243 440,974 225,482 215,492 73,237 175,024 64,461 74,441 6,680 4,254 9,203 407,300 $857,959 December 31, 2011 2010 CURRENT LIABILITIES: Accounts payable Dividends payable Accrued liabilities Total current liabilities NONCURRENT LIABILITES: Deferred income taxes Postretirement health care and life insurance benefits Industrial development bonds Liability for uncertain tax positions Deferred compensation and other liabilities Total noncurrent liabilities SHAREHOLDERS' EQUITY: Common stock, $.694/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued Class B common stock, $.694/9 par value40,000 shares authorized21,025 and 20,466 respectively, issued Capital in excess of par value Retained earnings, per accompanying statement Accumulated other comprehensive loss Treasury stock (at cost)71 shares and 69 shares, respectively Total shareholders' equity Total liabilities and shareholders' equity $10,683 4,603 43,069 58,355 $9,791 4,529 44,185 58,505 43,521 26,108 7,500 8,345 48,092 133,566 47,865 20,689 7,500 9,835 46,157 132,046 25,333 25,040 14,601 14,212 533,677 114,269 (19,953) (1,992) 665,935 $857,856 505,495 135,866 (11,213) (1,992) 667,408 $857,959 TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 19,229 18,279 17,862 Impairment charges 14,000 Impairment of equity method investment 4,400 Loss from equity method investment 194 342 233 Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and liabilities: Accounts receivable (5,448) 717 (5,899) Other receivables 3,963 (2,373) (2,088) Inventories (15,631) (1,447) 455 Prepaid expenses and other assets 5,106 4,936 5,203 Accounts payable and accrued liabilities 84 2,180 (2,755) Income taxes payable and deferred (5,772) 2,322 (12,543) Postretirement health care and life insurance benefits 2,022 1,429 1,384 Deferred compensation and other liabilities 2,146 2,525 2,960 Others (708) 310 305 Net cash provided by operating activities 50,390 82,805 76,994 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (16,351) (12,813) (20,831) Net purchase of trading securities (3,234) (2,902) (1,713) Purchase of available for sale securities (39,252) (9,301) (11,331) Sale and maturity of available for sale securities 7,680 8,208 17,511 Net cash used in investing activities (51,157) (16,808) (16,364) CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired (18,190) (22,881) (20,723) Dividends paid in cash (18,407) (18,130) (17,825) Net cash used in financing activities (36,597) (41,011) (38,548) Increase (decrease) in cash and cash equivalents http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true (37,364) 24,986 22,082 5/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Cash and cash equivalents at beginning of year 115,976 $78,612 Cash and cash equivalents at end of year Supplemental cash flow information Income taxes paid $16,906 Interest paid $38 Stock dividend issued $47,053 (The accompanying notes are an integral part of these statements.) 90,990 $115,976 68,908 $90,990 $20,586 $49 $46,683 $22,364 $182 $32,538 Answer the following questions. What were Tootsie Roll's total current liabilities at December 31, 2011? (Enter amount in thousands.) Current liabilities as at December 31, 2011 $ What was the increase/decrease in Tootsie Roll's total current liabilities from the prior year? (Enter amount in thousands.) Change in current liabilities $ How much were the accounts payable at December 31, 2011? (Enter amount in thousands.) Accounts payable $ Question 7 The financial statements of The Hershey Company and Tootsie Roll are presented below. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2011 In thousands of dollars except per share amounts Net Sales $6,080,788 Costs and Expenses: Cost of sales 3,548,896 Selling, marketing and administrative 1,477,750 Business realignment and impairment (credits) charges, net (886) Total costs and expenses 5,025,760 Income before Interest and Income Taxes 1,055,028 Interest expense, net 92,183 Income before Income Taxes 962,845 Provision for income taxes 333,883 $628,962 Net Income 2010 2009 $5,671,009 $5,298,668 3,255,801 1,426,477 83,433 4,765,711 905,298 96,434 808,864 299,065 $509,799 3,245,531 1,208,672 82,875 4,537,078 761,590 90,459 671,131 235,137 $435,994 Net Income Per ShareBasicClass B Common Stock Net Income Per ShareDilutedClass B Common Stock $2.58 $2.08 $1.77 $2.56 $2.07 $1.77 Net Income Per ShareBasicCommon Stock $2.85 $2.29 $1.97 $2.74 $2.21 $1.90 Net Income Per ShareDilutedCommon Stock Cash Dividends Paid Per Share: Common Stock $1.3800 $1.2800 $1.1900 Class B Common Stock 1.2500 1.1600 1.0712 The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com. THE HERSHEY COMPANY CONSOLIDATED BALANCE SHEETS December 31, In thousands of dollars ASSETS Current Assets: Cash and cash equivalents Accounts receivabletrade Inventories Deferred income taxes Prepaid expenses and other Total current assets Property, Plant and Equipment, Net Goodwill Other Intangibles Deferred Income Taxes Other Assets http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 2011 2010 $693,686 399,499 648,953 136,861 167,559 2,046,558 1,559,717 516,745 111,913 38,544 138,722 $884,642 390,061 533,622 55,760 141,132 2,005,217 1,437,702 524,134 123,080 21,387 161,212 6/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Total assets $4,412,199 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued liabilities Accrued income taxes Shortterm debt Current portion of longterm debt Total current liabilities Longterm Debt Other Longterm Liabilities Total liabilities Commitments and Contingencies Stockholders' Equity: The Hershey Company Stockholders' Equity Preferred Stock, shares issued: none in 2011 and 2010 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 2011 and 60,706,419 in 2010 Additional paidin capital Retained earnings TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 Accumulated other comprehensive loss The Hershey Company stockholders' equity Noncontrolling interests in subsidiaries Total stockholders' equity Total liabilities and stockholders'equity $4,272,732 $420,017 612,186 1,899 42,080 97,593 1,173,775 1,748,500 617,276 3,539,551 $410,655 593,308 9,402 24,088 261,392 1,298,845 1,541,825 494,461 3,335,131 299,269 60,632 490,817 4,699,597 299,195 60,706 434,865 4,374,718 (4,258,962) (4,052,101) (442,331) 849,022 23,626 872,648 $4,412,199 (215,067) 902,316 35,285 937,601 $4,272,732 THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2011 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 Stockbased compensation expense, net of tax of $15,127, $17,413 and 28,341 $19,223, respectively Excess tax benefits from stockbased compensation (13,997) Deferred income taxes 33,611 Gain on sale of trademark licensing rights, net of tax of $5,962 (11,072) Business realignment and impairment charges, net of tax of $18,333, $20,635 30,838 and $38,308, respectively Contributions to pension plans (8,861) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) Inventories (115,331) Accounts payable 7,860 Other assets and liabilities (205,809) Net Cash Provided from Operating Activities 580,867 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) Capitalized software additions (23,606) Proceeds from sales of property, plant and equipment 312 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) Cash Flows Provided from (Used by) Financing Activities Net change in shortterm borrowings 10,834 Longterm borrowings 249,126 Repayment of longterm debt (256,189) Proceeds from lease financing agreement 47,601 Cash dividends paid (304,083) Exercise of stock options 184,411 Excess tax benefits from stockbased compensation 13,997 Contributions from noncontrolling interests in subsidiaries Repurchase of Common Stock (384,515) Net Cash (Used by) Financing Activities (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents as of January 1 Cash and Cash Equivalents as of December 31 Interest Paid Income Taxes Paid 2010 2009 $509,799 $435,994 197,116 182,411 32,055 34,927 (1,385) (18,654) (4,455) (40,578) 77,935 60,823 (6,073) 20,329 (13,910) 90,434 13,777 901,423 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (169,099) (458,047) (8,252) (263,403) 28,318 4,455 7,322 (9,314) (438,818) (190,956) 884,642 $693,686 (71,100) 631,037 253,605 $884,642 (698,921) 216,502 37,103 $253,605 $97,892 292,315 $97,932 350,948 $91,623 252,230 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, http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 7/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true 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 Net earnings Other comprehensive earnings (loss) Comprehensive earnings Retained earnings at beginning of year. Net earnings Cash dividends Stock dividends Retained earnings at end of year Earnings per share 2011 $528,369 4,136 532,505 365,225 1,038 366,263 163,144 3,098 166,242 108,276 57,966 2,946 60,912 16,974 $43,938 $43,938 (8,740) $35,198 $135,866 43,938 (18,360) (47,175) $114,269 2010 $517,149 4,299 521,448 349,334 1,088 350,422 167,815 3,211 171,026 106,316 64,710 8,358 73,068 20,005 $53,063 2009 $495,592 3,739 499,331 319,775 852 320,627 175,817 2,887 178,704 103,755 14,000 60,949 2,100 63,049 9,892 $53,157 $53,063 1,183 $54,246 $53,157 2,845 $56,002 $147,687 53,063 (18,078) (46,806) $135,866 $144,949 53,157 (17,790) (32,629) $147,687 $0.76 $0.90 $0.89 Average Common and Class B Common shares outstanding 57,892 58,685 (The accompanying notes are an integral part of these statements.) 59,425 CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) Assets December 31, 2011 2010 CURRENT ASSETS: Cash and cash equivalents $78,612 $115,976 Investments 10,895 7,996 Accounts receivable trade, less allowances of $1,731 and $1,531 41,895 37,394 Other receivables 3,391 9,961 Inventories: Finished goods and workinprocess 42,676 35,416 Raw materials and supplies 29,084 21,236 Prepaid expenses 5,070 6,499 Deferred income taxes 578 689 Total current assets 212,201 235,167 PROPERTY, PLANT AND EQUIPMENT, at cost: Land 21,939 21,696 Buildings 107,567 102,934 Machinery and equipment 322,993 307,178 Construction in progress 2,598 9,243 455,097 440,974 LessAccumulated depreciation 242,935 225,482 Net property, plant and equipment 212,162 215,492 OTHER ASSETS: Goodwill 73,237 73,237 Trademarks 175,024 175,024 Investments 96,161 64,461 Split dollar officer life insurance 74,209 74,441 Prepaid expenses 3,212 6,680 Equity method investment 3,935 4,254 Deferred income taxes 7,715 9,203 Total other assets 433,493 407,300 $857,856 $857,959 Total assets Liabilities and Shareholders' Equity December 31, 2011 2010 CURRENT LIABILITIES: Accounts payable $10,683 $9,791 Dividends payable 4,603 4,529 Accrued liabilities 43,069 44,185 Total current liabilities 58,355 58,505 NONCURRENT LIABILITES: Deferred income taxes 43,521 47,865 Postretirement health care and life insurance benefits Industrial development bonds http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 26,108 7,500 20,689 7,500 8/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Liability for uncertain tax positions Deferred compensation and other liabilities Total noncurrent liabilities SHAREHOLDERS' EQUITY: Common stock, $.694/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued Class B common stock, $.694/9 par value40,000 shares authorized21,025 and 20,466 respectively, issued Capital in excess of par value Retained earnings, per accompanying statement Accumulated other comprehensive loss Treasury stock (at cost)71 shares and 69 shares, respectively Total shareholders' equity Total liabilities and shareholders' equity 8,345 48,092 133,566 9,835 46,157 132,046 25,333 25,040 14,601 14,212 533,677 114,269 (19,953) (1,992) 665,935 $857,856 505,495 135,866 (11,213) (1,992) 667,408 $857,959 TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 19,229 18,279 17,862 Impairment charges 14,000 Impairment of equity method investment 4,400 Loss from equity method investment 194 342 233 Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and liabilities: Accounts receivable (5,448) 717 (5,899) Other receivables 3,963 (2,373) (2,088) Inventories (15,631) (1,447) 455 Prepaid expenses and other assets 5,106 4,936 5,203 Accounts payable and accrued liabilities 84 2,180 (2,755) Income taxes payable and deferred (5,772) 2,322 (12,543) Postretirement health care and life insurance benefits 2,022 1,429 1,384 Deferred compensation and other liabilities 2,146 2,525 2,960 Others (708) 310 305 Net cash provided by operating activities 50,390 82,805 76,994 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (16,351) (12,813) (20,831) Net purchase of trading securities (3,234) (2,902) (1,713) Purchase of available for sale securities (39,252) (9,301) (11,331) Sale and maturity of available for sale securities 7,680 8,208 17,511 Net cash used in investing activities (51,157) (16,808) (16,364) CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired (18,190) (22,881) (20,723) Dividends paid in cash (18,407) (18,130) (17,825) Net cash used in financing activities (36,597) (41,011) (38,548) Increase (decrease) in cash and cash equivalents (37,364) 24,986 22,082 Cash and cash equivalents at beginning of year 115,976 $78,612 Cash and cash equivalents at end of year Supplemental cash flow information Income taxes paid $16,906 Interest paid $38 Stock dividend issued $47,053 (The accompanying notes are an integral part of these statements.) 90,990 $115,976 68,908 $90,990 $20,586 $49 $46,683 $22,364 $182 $32,538 NOTE 6OTHER INCOME (EXPENSE), NET: Other income (expense), net is comprised of the following: 2011 Interest and dividend income Gains (losses) on trading securities relating to deferred compensation plans Interest expense $1,087 2010 2009 $879 $1,439 29 3,364 4,524 (121) (142) (243) Impairment of equity method investment. _ _ (4,400) Equity method investment loss (194) (342) Foreign exchange gains (losses) 2,098 4,090 951 Capital gains (losses) (277) (28) (38) 274 537 100 Miscellaneous, net (233) $2,946 $8,358 $2,100 As of December 31, 2009, management determined that the carrying value of an equity method investment was impaired as a result of accumulated losses from operations and review of future expectations. The Company recorded a pretax http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 9/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true impairment charge of $4,400 resulting in an adjusted carrying value of $4,961 as of December 31, 2009. The fair value was primarily assessed using the present value of estimated future cash flows. Based on the information contained in these financial statements, compute the current ratio for 2011 for each company. (Round answers to 2 decimal places, e.g. 15.25.) Hershey Tootsie Roll Current ratio : 1 :1 Based on the information contained in these financial statements, compute the following 2011 ratios for each company. (Round answers to 1 decimal places, e.g. 15.2% or 15.2 times.) (1) Debt to assets. (2) Times interest earned. (Hershey's total interest expense for 2011 was $94,780,000. See Tootsie Roll's Note 6 for its interest expense.) Hershey Tootsie Roll Debt to assets % % Times interest earned times times Question 8 In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Salvage Value Cost Useful Life (in years) Depreciation Method Machine Acquired 1 Jan. 1, 2012 $132,000 $36,600 9 Straightline 2 July 1, 2013 83,000 11,400 5 Decliningbalance 3 Nov. 1, 2013 77,230 8,230 7 Unitsofactivity For the decliningbalance method, Farr Company uses the doubledeclining rate. For the unitsofactivity method, total machine hours are expected to be 30,000. Actual hours of use in the first 3 years were: 2013, 880 2014, 5,670 and 2015, 7,440. Compute the amount of accumulated depreciation on each machine at December 31, 2015. MACHINE 1 Accumulated Depreciation at December 31 $ MACHINE 2 $ MACHINE 3 $ If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014? 2013 Depreciation Expense $ 2014 $ Question 9 Wempe Co. sold $3,162,000, 8%, 10year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straightline amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 102 and (2) 98. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 1/1/14 http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 10/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true 2. 1/1/14 Prepare amortization tables for issuance of the bonds sold at 102 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded $ Issue date Premium Amortization $ Unamortized Premium $ Bond Carrying Value $ $ 1 2 3 Prepare amortization tables for issuance of the bonds sold at 98 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded $ Issue date Premium Amortization $ Unamortized Premium $ Bond Carrying Value $ $ 1 2 3 Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 102 and (2) 98. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 12/31/14 2. 12/31/14 Show the longterm liabilities balance sheet presentation for issuance of the bonds sold at 102 at December 31, 2014. WEMPE Co. Balance Sheet (Partial) December 31, 2014 $ : $ Show the longterm liabilities balance sheet presentation for issuance of the bonds sold at 98 at December 31, 2014. WEMPE Co. Balance Sheet (Partial) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 11/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true December 31, 2014 $ : $ Question 10 Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $176,000 at an annual interest rate of 5%. The loan is repayable over 5 years in annual installments of $40,652, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effectiveinterest method for amortizing debt. Her ski hill company's yearend will be June 30. Prepare an amortization schedule for the 5 years, 2013-2018. (Round answers to 0 decimal places, e.g. 125.) Cash Payment Period July 1, 2013 $ Interest Expense $ Principal Reduction $ Balance $ June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 * * Amount may be off due to rounding. Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30, 2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1/13 June 30/14 June 30/15 Show the balance sheet presentation of the note payable as of June 30, 2015. (Hint: Be sure to distinguish between the current and longterm portions of the note.) (Round answers to 0 decimal places, e.g. 125.) GRACE HERRON Balance Sheet (Partial) June 30, 2015 $ $ http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 12/13 7/11/2015 Print Assignment: Assignment: Week 3 Assignment ::true Question 11 Ratzlaff Company issues 2 million, 10year, 8% bonds at 97, with interest payable on July 1 and January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Assuming instead that the above bonds sold for 104, prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&titleType=true 13/13