Hello, I need help with a solution for the problem #52 chapter 12 please
Introduction to Financial ACCOunting (11th Edition) steps Chapter 12, Problem 52P Bookmark Chapte Problem Chapter 2 Exhibit contains the income statements and balance sheets of The Hershey Company, Chapter 3 manufacturer of such well-known products as Hershey's chocolate bars, Reese's peanut butter Chapter 4 cups, Almond Joy candy bars, and York peppermint patties. EXHIBIT 12-17 Chapter 5 CONSOLIDATED BALANCE SHEETS he Hershey Company 2010 Years Ended December 31, Chapter 6 and December 3 Current assets: 2010 (S in thousands, except Cash and cash equivalents 693,686 884,642 per share data) Chapter 7 390.061 Accounts receivable-trade 648,963 533,622 Chapter 8 Deferred income taxes 136861 55,760 Prepaid expenses and other 167.559 Chapter 9 Total current assets 2,046,558 2.005.217 Property, plant and equipment, net 1,569,717 1.437.702 516,745 Chapte Other intanelles 111.913 122.080 Deferred income taxes 38,544 21.387 Chapte 61.212 sets 138,722 Total assets 412.199 .272.732 Chapter 12 LIatlltles and Stockholders' Equity Current liabilities: Accounts payable 420,017 410655 Acarued liabilities 612,186 593,308 Accrued income takes 9A022 Short-term debt 42,080 24,088 Current portion of longterm debt Total current liabilities 1,173,775 1.298.845 1,748,500 1.541.825 Longterm debt Other longterm liabilities Total liabines Stockholders' equity: Common stock, shares issued: 299,269,702 in 2011 and 299,195,325in 2010 299,209 299,195 Class BCommon stock, shares issued: 60,632,042 in 2011 and 60,706,419 in2010 60,632 60,706 Additional paidHn capital 490817 434.865 Retained eamings 4,699,597 4.374.718 Treasury Common stock res, at COS 134,695,826 in 2011 and 132,871,512 in 2010 (4,258,962 4,062,101 Accumulated other comprehensive loss The Hershey Company stockholders 849,022 902,316 equity Noncontrolling interests in subsidiaries Total stockholders' equity 872,64 Total liabilities and stockholders' equity 412.199 72.732 1. Compute the following ratios for 20 (a) current, (b) average collection period, and (c) inventory turnover. Assume all sales are on cred 2. Assess Hershey's liquidity compared with the following 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. Reuters provides the following overview of the food processing industry. The industry consists of companies engaged in processing and packaging produce, meats, fish, animal feeds, fruit juices and dairy products. The industry includes, grain milling, crop cleaning, grading and packaging, animal slaughtering and packaging operations, seafood processing, freezing, canning operations, juice, coffee, tea, dairy and all other food manufacturers, including pet foods. Reuters Averages Tootsie Roll as of August 31, 2012 ar ended December 31, 2011 Current ratio 1.38 times 3.64 times Average collection period 19.1 days 27.4 days 5.89 times Inventory turnover 5.69 times Reuters reports Receivable Turnover as 19.15 times per year. (365 -f 19.15) 9-1 days CONSOLIDATED BALANCE SHEETS 2011 2010 Current assets: 693,686 884,642 Cash and cash equivalents Accounts receivable-trade 399,499 390,061 648,953 533,622 Introduction to Financial ACCOunting (11th Edition) steps Chapter 12, Problem 52P Bookmark Chapte Problem Chapter 2 Exhibit contains the income statements and balance sheets of The Hershey Company, Chapter 3 manufacturer of such well-known products as Hershey's chocolate bars, Reese's peanut butter Chapter 4 cups, Almond Joy candy bars, and York peppermint patties. EXHIBIT 12-17 Chapter 5 CONSOLIDATED BALANCE SHEETS he Hershey Company 2010 Years Ended December 31, Chapter 6 and December 3 Current assets: 2010 (S in thousands, except Cash and cash equivalents 693,686 884,642 per share data) Chapter 7 390.061 Accounts receivable-trade 648,963 533,622 Chapter 8 Deferred income taxes 136861 55,760 Prepaid expenses and other 167.559 Chapter 9 Total current assets 2,046,558 2.005.217 Property, plant and equipment, net 1,569,717 1.437.702 516,745 Chapte Other intanelles 111.913 122.080 Deferred income taxes 38,544 21.387 Chapte 61.212 sets 138,722 Total assets 412.199 .272.732 Chapter 12 LIatlltles and Stockholders' Equity Current liabilities: Accounts payable 420,017 410655 Acarued liabilities 612,186 593,308 Accrued income takes 9A022 Short-term debt 42,080 24,088 Current portion of longterm debt Total current liabilities 1,173,775 1.298.845 1,748,500 1.541.825 Longterm debt Other longterm liabilities Total liabines Stockholders' equity: Common stock, shares issued: 299,269,702 in 2011 and 299,195,325in 2010 299,209 299,195 Class BCommon stock, shares issued: 60,632,042 in 2011 and 60,706,419 in2010 60,632 60,706 Additional paidHn capital 490817 434.865 Retained eamings 4,699,597 4.374.718 Treasury Common stock res, at COS 134,695,826 in 2011 and 132,871,512 in 2010 (4,258,962 4,062,101 Accumulated other comprehensive loss The Hershey Company stockholders 849,022 902,316 equity Noncontrolling interests in subsidiaries Total stockholders' equity 872,64 Total liabilities and stockholders' equity 412.199 72.732 1. Compute the following ratios for 20 (a) current, (b) average collection period, and (c) inventory turnover. Assume all sales are on cred 2. Assess Hershey's liquidity compared with the following 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. Reuters provides the following overview of the food processing industry. The industry consists of companies engaged in processing and packaging produce, meats, fish, animal feeds, fruit juices and dairy products. The industry includes, grain milling, crop cleaning, grading and packaging, animal slaughtering and packaging operations, seafood processing, freezing, canning operations, juice, coffee, tea, dairy and all other food manufacturers, including pet foods. Reuters Averages Tootsie Roll as of August 31, 2012 ar ended December 31, 2011 Current ratio 1.38 times 3.64 times Average collection period 19.1 days 27.4 days 5.89 times Inventory turnover 5.69 times Reuters reports Receivable Turnover as 19.15 times per year. (365 -f 19.15) 9-1 days CONSOLIDATED BALANCE SHEETS 2011 2010 Current assets: 693,686 884,642 Cash and cash equivalents Accounts receivable-trade 399,499 390,061 648,953 533,622
