I would like someone too check my work, if possible I also need help finding the times interest ration and the return on net sales?

10 11 Tootsie Roll Industries Inc. 12 Income Statement 13 Total Revenue 14 Product Cost of Goods Sold 15 Rental and Royalty Cost 16 Total Gross Margin 17 Selling, Marketing and Administrative Expenses 18 Earnings from Operations 19 Income Taxes 20 Net Earnings Year 1 518,9201 329,880 867 188,173 117,691 70,482 16,401 56,805 Year 2 519,289 325,924 972 192,393 120,977 71,416 3,907 80,654 Year 3 521,100 320,290 1,019 199,791 107,377 92,414 30,593 67,319 Vertical Analysis Year 1 100.00% 63.57% 0.17% 36.26% 22.68% 13.58% 3.16% 10.95% Vertical Analysis Year 2 100.00% 62.76% 0.19% 37.05% 23.30% 13.75% 0.75% 15.53% Horizontal Analysis Year 3 to 1 0.42% -2.91% 17.53% 6.17% -8.76% 31.12% 86.53% 18.51% 22 Vertical Analysis Year 2 10.35% 4.47% 5.09% 5.90% 29.10% 19.22% 23 Balance Sheet 24 Cash and Cash Equivalents 25 Investments 26 Accounts Receivable Trade 27 Inventory (Add: FG and WIP + RM & supplies lines) 28 Total Current Assets 29 Net Property, Plant and Equipment 30 Goodwill 31 Trademarks 32 Total Assets 33 Accounts Payable 34 Accrued Liabilities 35 Total Current Liabilities 36 Total Noncurrent Liabilities 37 Total liabilities (Add total current liab+total noncurren 38 Common Stock 39 Class B Common Stock 40 Retained Earnings 41 Treasury Stock 42 Total Equity 43 Total liabilities and Shareholders Equity Year 1 110,899 35,714 49,777 51,694 304,046 186,101 73,237 175,024 947,361 11,817 42,849 61,391 135,473 196,864 26,767 17,767 33,767 -1,992 750,622 947,361 Year 2 96,314 41,606 47,354 54,827 270,920 178,972 73,237 175,024 930,946 11,928 45,157 63,788 133,354 197,142 26,361 17,285 57,225 -1,992 733,804 930,946 Year 3 119,145 67,513 42,964 57,531 299,300 180,905 73,237 175,024 920,101 10,320 46,300 63,561 145,002 208,563 26,181 16,820 43,833 -1,992 711,538 920,101 Vertical Analysis Year 1 11.71% 3.77% 5.25% 5.46% 32.09% 19.64% 7.73% 18.47% 100.00% 1.25% 4.52% 6.48% 14.30% 20.78% 2.83% 1.88% 3.56% -0.21% 79.23% 100.00% 7.87% 18.80% 100.00% 1.28% 485.00% 6.90% 14.32% 21.18% 2.83% 1.86% 6.15% -0.21% 78.82% 100.00% Horizontal Analysis Year 3 to 1 7.44% 89.04% -13.69% 11.29% -1.56% -2.79% 0.00% 0.00% -2.88% -12.67% 8.05% 3.53% 7.03% 5.95% -2.19% -5.33% 29.81% 0.00% -5.21% -2.88% 44 45 5 Tootsie Roll Industries TRI Competition or Industry Ratio** Year 1 TRI Year 2 Ratio Benchmarks Formula Year 1 3 Liquidity Ratios Current Ratio 4.95 4.70 Greater than 1. *Total Current Assets/Total Current Liabilities *(Cash & Cash Equivalents +linvestments + Accounts Receivable Trade)/Total Current Liabilities Ideally greater than 1, but likely will be 4.90 less than 1. Acid Test Ratio 2 Asset Management Ratio Depends on industry, higher is 5.72 better 3 Inventory Turnover 6.38 *Product Cost of Goods Sold/Average Inventory (remember, Avg Inv is beginning year inv + ending year inv, result divided by 2.) 5 Solvency Ratios 5 Debt ratio 64.00% 72.00% *Total Liabilities/Total Assets *Operating Income/Interest Expense Less than 67% Higher the better, unless interest exp 11.97 is 0. 7 Times Interest Earned Ratio Profitability Ratios Gross Profit Percent *Total Gross Margin/Total Revenue *Net Earnings/Total Sales 36.00% 37.00% Depends on industry, higher is 42.40% better Depends on 9.70% industry, higher is Depends on 1 Return on Net Sales 13.25% 13.03% 13.03% 55 Solvency Ratios 56 Debt ratio 64.00% 72.00% *Total Liabilities/Total Assets *Operating Income/Interest Expense Less than 67% Higher the better, unless interest exp 11.97 is 0. 57 Times Interest Earned Ratio 59 Profitability Ratios 50 Gross Profit Percent *Total Gross Margin/Total Revenue *Net Earnings/Total 36.00% 37.00% 51 Return on Net Sales Sales 13.25% 13.03% Depends on industry, higher is 42.40% better Depends on 9.70% industry, higher is Depends on company. Would want to see stay stable or increase, $3.34 not decrease. **Locate in research (on company income statement) 52 Earnings Per Share (EPS) $0.89 $1.24 54 Market Analysis **Locate in research (on Internet) 55 Price Earning Ratio Depends on company. 29.90 Remaining steady is Depends on company. 2.54% Remaining steady is 56 Dividend Yield **Locate in research (on Internet) 1.07% 0.98% 58 *Calculated by Author - N otodinraraaran 10 11 Tootsie Roll Industries Inc. 12 Income Statement 13 Total Revenue 14 Product Cost of Goods Sold 15 Rental and Royalty Cost 16 Total Gross Margin 17 Selling, Marketing and Administrative Expenses 18 Earnings from Operations 19 Income Taxes 20 Net Earnings Year 1 518,9201 329,880 867 188,173 117,691 70,482 16,401 56,805 Year 2 519,289 325,924 972 192,393 120,977 71,416 3,907 80,654 Year 3 521,100 320,290 1,019 199,791 107,377 92,414 30,593 67,319 Vertical Analysis Year 1 100.00% 63.57% 0.17% 36.26% 22.68% 13.58% 3.16% 10.95% Vertical Analysis Year 2 100.00% 62.76% 0.19% 37.05% 23.30% 13.75% 0.75% 15.53% Horizontal Analysis Year 3 to 1 0.42% -2.91% 17.53% 6.17% -8.76% 31.12% 86.53% 18.51% 22 Vertical Analysis Year 2 10.35% 4.47% 5.09% 5.90% 29.10% 19.22% 23 Balance Sheet 24 Cash and Cash Equivalents 25 Investments 26 Accounts Receivable Trade 27 Inventory (Add: FG and WIP + RM & supplies lines) 28 Total Current Assets 29 Net Property, Plant and Equipment 30 Goodwill 31 Trademarks 32 Total Assets 33 Accounts Payable 34 Accrued Liabilities 35 Total Current Liabilities 36 Total Noncurrent Liabilities 37 Total liabilities (Add total current liab+total noncurren 38 Common Stock 39 Class B Common Stock 40 Retained Earnings 41 Treasury Stock 42 Total Equity 43 Total liabilities and Shareholders Equity Year 1 110,899 35,714 49,777 51,694 304,046 186,101 73,237 175,024 947,361 11,817 42,849 61,391 135,473 196,864 26,767 17,767 33,767 -1,992 750,622 947,361 Year 2 96,314 41,606 47,354 54,827 270,920 178,972 73,237 175,024 930,946 11,928 45,157 63,788 133,354 197,142 26,361 17,285 57,225 -1,992 733,804 930,946 Year 3 119,145 67,513 42,964 57,531 299,300 180,905 73,237 175,024 920,101 10,320 46,300 63,561 145,002 208,563 26,181 16,820 43,833 -1,992 711,538 920,101 Vertical Analysis Year 1 11.71% 3.77% 5.25% 5.46% 32.09% 19.64% 7.73% 18.47% 100.00% 1.25% 4.52% 6.48% 14.30% 20.78% 2.83% 1.88% 3.56% -0.21% 79.23% 100.00% 7.87% 18.80% 100.00% 1.28% 485.00% 6.90% 14.32% 21.18% 2.83% 1.86% 6.15% -0.21% 78.82% 100.00% Horizontal Analysis Year 3 to 1 7.44% 89.04% -13.69% 11.29% -1.56% -2.79% 0.00% 0.00% -2.88% -12.67% 8.05% 3.53% 7.03% 5.95% -2.19% -5.33% 29.81% 0.00% -5.21% -2.88% 44 45 5 Tootsie Roll Industries TRI Competition or Industry Ratio** Year 1 TRI Year 2 Ratio Benchmarks Formula Year 1 3 Liquidity Ratios Current Ratio 4.95 4.70 Greater than 1. *Total Current Assets/Total Current Liabilities *(Cash & Cash Equivalents +linvestments + Accounts Receivable Trade)/Total Current Liabilities Ideally greater than 1, but likely will be 4.90 less than 1. Acid Test Ratio 2 Asset Management Ratio Depends on industry, higher is 5.72 better 3 Inventory Turnover 6.38 *Product Cost of Goods Sold/Average Inventory (remember, Avg Inv is beginning year inv + ending year inv, result divided by 2.) 5 Solvency Ratios 5 Debt ratio 64.00% 72.00% *Total Liabilities/Total Assets *Operating Income/Interest Expense Less than 67% Higher the better, unless interest exp 11.97 is 0. 7 Times Interest Earned Ratio Profitability Ratios Gross Profit Percent *Total Gross Margin/Total Revenue *Net Earnings/Total Sales 36.00% 37.00% Depends on industry, higher is 42.40% better Depends on 9.70% industry, higher is Depends on 1 Return on Net Sales 13.25% 13.03% 13.03% 55 Solvency Ratios 56 Debt ratio 64.00% 72.00% *Total Liabilities/Total Assets *Operating Income/Interest Expense Less than 67% Higher the better, unless interest exp 11.97 is 0. 57 Times Interest Earned Ratio 59 Profitability Ratios 50 Gross Profit Percent *Total Gross Margin/Total Revenue *Net Earnings/Total 36.00% 37.00% 51 Return on Net Sales Sales 13.25% 13.03% Depends on industry, higher is 42.40% better Depends on 9.70% industry, higher is Depends on company. Would want to see stay stable or increase, $3.34 not decrease. **Locate in research (on company income statement) 52 Earnings Per Share (EPS) $0.89 $1.24 54 Market Analysis **Locate in research (on Internet) 55 Price Earning Ratio Depends on company. 29.90 Remaining steady is Depends on company. 2.54% Remaining steady is 56 Dividend Yield **Locate in research (on Internet) 1.07% 0.98% 58 *Calculated by Author - N otodinraraaran