How to compute these in excel the exhibit is below the two problems. Separate by problem number 12-53 and 12-54

12-53 Solvency Ratios

Exhibit 12-17 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.

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.

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. See a description of the food processing industry in problem 12-52.

Reuters Averages (as of August 31, 2012) Tootsie Roll (year ended December 31, 2011)

Total-debt-to-total-assets Not available 0.0%*

Total-debt-to-total-shareholders' equity 46.05% 0.0%*

*Tootsie Roll has no debt in its capital structure! In fact, total liabilities are only 22.4% of total assets.

12-54 Profitability Ratios

Exhibit 12-17 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.

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.

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.

Reuters Averages (as of August 31, 2012) Tootsie Roll (year ended December 31, 2011)

Return on stockholders' equity 19.08% 6.59%

Gross profit rate 38.75% 31.2%

Return on sales

(

Net income

Sales

)

5.91% 8.3%

Total asset turnover 1.11 times 0.62 times

Return on assets

(

Net income

Assets

)

8.16% 5.12%

Financial leverage ratio Not available 1.29

Additional paid- 490,817 434,865 in-capital Retained 4,699,597 4,374,718 earnings Treasury-Com- mon stock shares, at cost: 134,695,826 in (4,258,962) (4,052, 101) 2011 and 132,871,512 in 2010 Accumulated (442,331 ) (215, 067 ). other compre- hensive loss The Hershey 849,022 902,316 Company stock- holders' equity Noncontrolling 23,626 35,285 interests in subsidiaries Total stockhold- 872,648 937,601 ers' equity Total liabilities $4,412, 199 $4,272,732 and stockhold-EXHIBIT 12-17 The Her- shey Company Years Ended December 31, 2011, and Decem- ber 31, 2010 ($ in thousands, except per share data) CONSOLIDATED BALANCE SHEETS 2011 2010 Assets Current assets: Cash and cash $ 693,686 $ 884,642 equivalents Accounts receiv- 399,499 390,061 able-trade Inventories 648,953 533,622 Deferred income 136,861 55,760 taxes Prepaid expens- 167,559 141,132 es and other Total current 2,046,558 2,005,217 assetsCurrent portion 97,593 261,392 of long-term debt Total current 1,173,775 1,298,845 liabilities Long-term debt 1,748,500 1,541,825 Other long-term 617,276 494,461 liabilities Total liabilities 3,539,551 3,335,131 Stockholders' equity: Common stock, 299,269 299, 195 shares issued: 299,269,702 in 2011 and 299,195,325 in 2010 Class B Com- 60,632 60,706 mon stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010CONSOLIDATED STATEMENT OF OPERATIONS For Years Ended December December 31, 2011 31, 2010 Net sales $6,080,788 $5,671,009 Costs and expenses: Cost of sales 3,548,896 3,255,801 Selling, market- 1,477,750 1,426,477 ing, and administrative Business realign- (886 ) 83,433 ment and impair- ment charges, net Total costs and 5,025,760 4,765,711 expenses Income before 1,055,028 905,298 interest and in- come taxes Interest expense, 92,183 96,434 netProperty, plant, 1,559,717 and equipment, net Goodwill 516,745 Other intangibles 111,913 Deferred income 38,544 taxes Other assets 138,722 Total assets $4,412,199 Liabilities and Stockholders' Equy Current liabilities: Accounts 8 420,017 payable Accrued 612,186 liabilities Accrued income 1,899 taxes Short-term debt 42,080 1 ,437,702 524,134 123,080 21 ,387 _L ow _L "m _L N $4,272,732 $ 410,655 593,308 9,402 24,088 Income before 962,845 808,864 income taxes [\\3 LO \"(0 O CD 01 Provision for in come taxes Net income per $ 509,799 common share BasicClass B Net income per $ 2.08 common share DilutedClass B $ 2.07 $ 2.29 Net income per $ 2.85 common share BasicCommon stock Net income per common share DilutedCom- mon stock GD 00 \"0.3 CO CD 00