Question
Hersheys is a familiar name in snacks. Theres a good chance you have recently enjoyed one of its products. The company manufactures confectionery products in
Hersheys is a familiar name in snacks. Theres a good chance you have recently enjoyed one of its products. The company manufactures confectionery products in a variety of packaged forms and markets them under more than 50 brands. Among the principal confectionery products in the United States are: Hersheys chocolates, Hersheys Kisses chocolates, Kit Kat, Mr. Goodbar chocolate bars, Reeses peanut butter cups, Almond Joy candy bars, Good & Plenty candy, Mounds candy bars, Payday candy bars, and 5 th Avenue candy bars. |
THE HERSHEY COMPANY Consolidated Statements of Income (in thousands of dollars except per share amounts) | ||||||
For the Years Ended December 31, | ||||||
2008 | 2007 | 2006 | ||||
Net Sales | $ | 5,132,768 | $ | 4,946,716 | $ | 4,944,230 |
Costs and Expenses: | ||||||
Cost of sales | 3,375,050 | 3,315,147 | 3,076,718 | |||
Selling, marketing, and administrative | 1,073,019 | 895,874 | 860,378 | |||
Business realignment and impairment charges, net | 94,801 | 276,868 | 14,576 | |||
Total costs and expenses | 4,542,870 | 4,487,889 | 3,951,672 | |||
Income before Interest and Income Taxes | 589,898 | 458,827 | 992,558 | |||
Interest expense, net | 97,876 | 118,585 | 116,056 | |||
Income before Income Taxes | 492,022 | 340,242 | 876,502 | |||
Provision for income taxes | 180,617 | 126,088 | 317,441 | |||
Net Income | $ | 311,405 | $ | 214,154 | $ | 559,061 |
Net Income Per ShareBasicClass B CommonStock | $ | 1.27 | $ | .87 | $ | 2.19 |
Net Income Per Share-DilutedClass B CommonStock | $ | 1.27 | $ | .87 | $ | 2.17 |
Net Income Per Share-BasicCommon Stock | $ | 1.41 | $ | .96 | $ | 2.44 |
Net Income Per Share-DilutedCommon Stock | $ | 1.36 | $ | .93 | $ | 2.34 |
Cash Dividends Paid per Share: | ||||||
Common Stock | $ | 1.1900 | $ | 1.1350 | $ | 1.030 |
Class B Common Stock | 1.0712 | 1.0206 | .925 |
THE HERSHEY COMPANY Consolidated Balance Sheets (in thousands of dollars) | ||||
December 31, | ||||
2008 | 2007 | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ | 37,103 | $ | 129,198 |
Accounts receivabletrade | 455,153 | 487,285 | ||
Inventories | 592,530 | 600,185 | ||
Deferred income taxes | 70,903 | 83,668 | ||
Prepaid expenses and other | 189,256 | 126,238 | ||
Total current assets | 1,344,945 | 1,426,574 | ||
Property, Plant, and Equipment, Net | 1,458,949 | 1,539,715 | ||
Goodwill | 554,677 | 584,713 | ||
Other Intangibles | 110,772 | 155,862 | ||
Deferred Income Taxes | 13,815 | - | ||
Other Assets | 151,561 | 540,249 | ||
Total assets | $ | 3,634,719 | $ | 4,247,113 |
LIABILITIES, MINORITY INTEREST, AND STOCKHOLDERS EQUITY | ||||
Current Liabilities: | ||||
Accounts payable | $ | 249,454 | $ | 223,019 |
Accrued liabilities | 504,065 | 538,986 | ||
Accrued income taxes | 15,189 | 373 | ||
Short-term debt | 483,120 | 850,288 | ||
Current portion of long-term debt | 18,384 | 6,104 | ||
Total current liabilities | 1,270,212 | 1,618,770 | ||
Long-Term Debt | 1,505,954 | 1,279,965 | ||
Other Long-Term Liabilities | 504,963 | 544,016 | ||
Deferred Income Taxes | 3,646 | 180,842 | ||
Total liabilities | 3,284,775 | 3,623,593 | ||
Commitments and Contingencies | - | - | ||
Minority Interest | 31,745 | 30,598 | ||
Stockholders Equity: | ||||
Preferred Stock, shares issued: none in 2008 and 2007 | - | - | ||
Common Stock, shares issued: 299,190,836 in 2008 and 299,095,417 in 2007 | 299,190 | 299,095 | ||
Class B Common Stock, shares issued: 60,710,908 in 2008 and 60,806,327 in 2007 | 60,711 | 60,806 | ||
Additional paid-in capital | 352,375 | 335,256 | ||
Retained earnings | 3,975,762 | 3,927,306 | ||
TreasuryCommon Stock shares, at cost: 132,866,673 in 2008 and 132,851,893 in 2007 | (4,009,931 | ) | (4,001,562 | ) |
Accumulated other comprehensive loss | (359,908 | ) | (27,979 | ) |
Total stockholders equity | 318,199 | 592,922 | ||
Total liabilities, minority interest, and stockholders equity | $ | 3,634,719 | $ | 4,247,113 |
The above information was reported in a recent annual statement. For the year 2008, compute the following ratios. Assume an income tax rate of 34%.(Round your answers to 2 decimal places. Omit the "%" sign in your response.) |
Return on equity | % |
Return on assets | % |
Financial leverage percentage | % |
Profit margin | % |
Fixed asset turnover | |
Cash ratio | |
Current ratio | |
Quick ratio | |
Receivable turnover | |
Inventory turnover | |
Times interest earned | |
Debt/Equity | |
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