Module 03 Course Project - Tootsie Roll Industries Inc. Balance Sheet

Locate Tootsie Roll Industries Inc.'s most current SEC Form 10-K Annual Filing as well as the prior year?s SEC Form 10-K Annual filing in the Tootsie Roll Industries Annual Reports. Focus on the balance sheet, which Tootsie Roll Industries Inc. titlesConsolidated Statement of Financial Position, and the notes following the financial statements.

Note:Year 3 balance sheet information will need to be located on the prior year?s annual filing, as only two years of balance sheet information are shown in the statement. This is why you need to locate the prior year?s filing as well as the current year as directed above.

Complete the required balance sheet items and address the questions located in the Module 03 tab of the Course Project Template.

In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report:http://rasmussen.libanswers.com/faq/32821

P.S: This report has to be used by the 2016 Tootsie Roll Annual Report

https://learning.rasmussen.edu/bbcswebdav/internal/courses/SUM17T1-ONP-ACG2209-05/gradebookotesAndFeedback/attempt/_4102325_1/2016%20Annual%20Report.pdf

(The years have to be 2016, 2015,2014)

Also here is the exel spreadsheet that needs to be used for this. When you open the file ignore when you see the different years. The years needs to be just 2016, 2015, 2014 on the sections. This is on module 3

The data that needs to be used is on page 32 on the URL

Required: Complete the purple areas of the chart, and the questions in the text boxes below. List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014, and replace Year 3 with 2013. In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll webs itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help visit the APA Guide: http://guides.rasmussen.edu/apa Tootsie Roll Industries Inc. Income Statement Year 1 Year 2 Total Revenue Product Cost of Goods Sold Rental and Royalty Cost Total Gross Margin Selling, Marketing and Administrative Expenses Earnings from Operations Income Taxes Net Earnings Question 1: What is Tootsie Roll's Gross Profit Margin? (Hint: Divide Total Gross Margin by Total Revenue). What does thi figure represent? Question 2:What is Tootsie Roll's Profit Margin? (Hint: Profit margin is calculated by dividing Net Earnings by Total Sales). What does this figure represent? Question 3: What are Tootsie Roll's earnings per share in the three years presented? (Hint: Check the income statement a Net Earnings for this information.) Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industries, recognize revenue? Question 5: Has Net Product Sales shown an increasing or decreasing trend over the past three years? Interpret this tren Should this be a concern for the company? Why or why not? Question 6: Has the Net Earnings shown an increasing or decreasing trend over the past three years? Interpret this trend Should this be a concern for the company? Why or why not? Question 7: Compare the Net Product Sales trend and the Net Earnings trend. Are these two items trending the same? Interpret any differences and infer what those may mean in relation to the company's operating decisions over the past three years. References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa ) from the Tootsie Roll website 32821 For general APA help, Year 3 Total Revenue). What does this ng Net Earnings by Total Sales). Check the income statement after w does Tootsie Roll Industries, Inc. hree years? Interpret this trend. ree years? Interpret this trend. wo items trending the same? rating decisions over the past q/32821 ; APA Guide: Required: Complete the purple areas of the chart, and the questions in the text boxes below. List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014, and replace Year 3 with 2013. In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll webs itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help visit the APA Guide: http://guides.rasmussen.edu/apa Tootsie Roll Industries Inc. Balance Sheet Year 1 Cash and Cash Equivalents Investments Accounts Receivable Trade Inventory (Add: FG and WIP + RM & supplies lines) Total Current Assets Net Property, Plant and Equipment Goodwill Trademarks Total Assets Accounts Payable Accrued Liabilities Total Current Liabilities Total Noncurrent Liabilities Total liabilities (Add total current liab + total noncurrent) Common Stock Class B Common Stock Retained Earnings Treasury Stock Total Equity Total liabilities and Shareholders Equity Question 1: Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method of depreciation does Too Industries Inc. use for their property, plant and equipment? Question 2: : Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method does Tootsie Roll Indus to value its inventory? Question 2: : Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method does Tootsie Roll Indus to value its inventory? Question 3: Calculate Tootsie Roll Industry Inc's fixed asset turnover and interpret it's meaning. Show your work. (Hint: Fix Turnover is calculated as Net Earnings/ Net Property, Plant and Equipment) Question 4: Calculate Tootsie Roll Industry Inc's accounts receivable turnover for the most recent year and interpret its me your work. (Hint: Accounts Receivable Turnover is calculated as Total Sales/Average Accounts Receivable.) Question 5: Calculate Tootsie Roll Industry Inc's inventory turnover ratio for the most recent year and interpret its meaning work. (Hint: Inventory turnover ratio is calculated as Product Cost of Goods Sold/Average Inventory.) Question 6: Has the total current assets amount show an increasing or decreasing trend from one year to the next? What accounts experienced the largest change? (Hint: To find the amount of change, subtract the prior year amount from the cu amount. Positive answers mean the account has increased by that amount, negative answers mean the account has decre amount.) Question 7: Is the amount of current liabilities more or less than the long-term liabilities for the most recent year? What d result mean? Question 8: Is the total stockholders' equity more or less than total liabilities for the most recent year? What does the resu Question 8: Is the total stockholders' equity more or less than total liabilities for the most recent year? What does the resu Question 9: Calculate the debt ratio and current ratio for your company for the most recent year. Generally speaking, what ratios tell you? (Hint: Debt ratio is calculated as Total Liabilities/Total Assets; Current ratio is calculated as Total Current Ass Current Liabilities.) Question 10: What is the main reason for the change in stockholders' equity? What is the largest component of stockhold Question 11: How many classes of common stock does the company have? For each class, how many shares are authorize and outstanding? (To find outstanding shares, subtract any treasury stock for that class from the number issued to find the outstanding.) Question 12: Calculate the Return on Stockholder's Equity for the most recent year and interpret its meaning. Show your w Return on Stockholders Equity is calculated as Net Earnings/Average Total Equity.) References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa ) the text boxes below. ar 2, etc. Example: If place Year 2 with 2014, rieved, whether from the Tootsie Roll website utside sources. wers.com/faq/32821 For general APA help, Year 2 Year 3 ements. What method of depreciation does Tootsie Roll atements. What method does Tootsie Roll Industries Inc. use atements. What method does Tootsie Roll Industries Inc. use terpret it's meaning. Show your work. (Hint: Fixed Asset ) ver for the most recent year and interpret its meaning. Show /Average Accounts Receivable.) r the most recent year and interpret its meaning. Show your Sold/Average Inventory.) reasing trend from one year to the next? What account or nge, subtract the prior year amount from the current year , negative answers mean the account has decreased by that erm liabilities for the most recent year? What does the es for the most recent year? What does the result mean? es for the most recent year? What does the result mean? the most recent year. Generally speaking, what do these ; Current ratio is calculated as Total Current Assets/Total ty? What is the largest component of stockholders' equity? ? For each class, how many shares are authorized, issued, or that class from the number issued to find the number ent year and interpret its meaning. Show your work. (Hint: Equity.) answers.com/faq/32821 ; APA Guide: Required: Complete the purple areas of the chart, and the questions in the text boxes below. List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014, and replace Year 3 with 2013. In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll webs itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help visit the APA Guide: http://guides.rasmussen.edu/apa Tootsie Roll Industries Inc. Statement of Cash Flows Year 1 Year 2 Net Earnings Net Cash Provided by Operating Activities Net Cash Used in Investing Activities Net Cash Used in Financing Activities Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Question 1: Which method of reporting cash flows from operations does the company use? Question 2: Compare net earnings to the net cash provided by operating activities. Explain why these two figures are differ these two numbers trending in the same direction? What is the largest adjustment item in the operating section for the mo recent year? Question 3: What items in the investing section have created the largest cash inflow? Largest cash outflow? Did investing ac provide cash or use cash in each of the three years presented? How can you tell? Question 4: Did the financing activities provide cash or use cash in each of the three years presented? What are the stock repurchase trends of the company? What are the dividend trends of the company? Question 5: Does the cash provided by operations cover the amounts of cash used for both investing and financing activitie does this result mean for the overall amount of cash in the company from the start of the year to the end of the year? Has increased or decreased? Should this be a concenr for the company? Now, locate the Auditors Report, titled "Report of Independent Registered Public Accounting Firm." Address the f questions related to this report. Question 1: Who is the letter addressed to? Question 2: What is management responsible for? Question 3: What is the auditor responsible for? Question 4: Does the auditor give absolute assurance that the financials are free of material error? Question 4: Does the auditor give absolute assurance that the financials are free of material error? Question 5: What is the level of assurance given by the auditor? Question 6: What policies and procedures does a company's internal control over financial reporting include? Question 7: What audit firm signed the audit letter? References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa ) om the Tootsie Roll website 821 For general APA help, Year 3 y these two figures are different. Are operating section for the most ash outflow? Did investing activities ented? What are the stock esting and financing activities? What to the end of the year? Has it nting Firm." Address the following rror? rror? orting include? 2821 ; APA Guide: Required: Complete the purple cells for horizontal and vertical analysis for Tootsie Roll Industries using the follow Vertical Analysis: (Financial Statement item/base amount), where your base amount is Total Revenue for the i Horizontal Analysis: (Current year-base year)/base year Then, complete the purple cells in the financial ratios below. You will use the analyses on this tab of the workboo In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll webs itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA help visit the APA Guide: http://guides.rasmussen.edu/apa Tootsie Roll Industries Inc. Income Statement Year 1 Total Revenue Product Cost of Goods Sold Rental and Royalty Cost Total Gross Margin Selling, Marketing and Administrative Expenses Earnings from Operations Income Taxes Net Earnings Balance Sheet Cash and Cash Equivalents Investments Accounts Receivable Trade Inventory (Add: FG and WIP + RM & supplies lines) Total Current Assets Net Property, Plant and Equipment Goodwill Trademarks Total Assets Accounts Payable Accrued Liabilities Total Current Liabilities Total Noncurrent Liabilities Total liabilities (Add total current liab + total noncurrent) Common Stock Class B Common Stock 0 0 0 0 0 0 0 0 Year 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Retained Earnings Treasury Stock Total Equity Total liabilities and Shareholders Equity 0 0 0 0 Tootsie Roll Industries Formula Liquidity Ratios Current Ratio *Total Current Assets/Total Current Liabilities Acid Test Ratio *(Cash & Cash Equivalents +Iinvestments + Accounts Receivable Trade)/Total Current Liabilities Asset Management Ratio Inventory Turnover *Product Cost of Goods Sold/Average Inventory (remember, Avg Inv is beginning year inv + ending year inv, result divided by 2.) Solvency Ratios Debt ratio *Total Liabilities/Total Assets Times Interest Earned Ratio *Operating Income/Interest Expense Profitability Ratios Gross Profit Percent *Total Gross Margin/Total Revenue Return on Net Sales *Net Earnings/Total Sales Earnings Per Share (EPS) **Locate in research (on company income statement) Market Analysis Price Earning Ratio **Locate in research (on Internet) Dividend Yield **Locate in research (on Internet) *Calculated by Author **Located in research References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide: http://guides.rasmussen.edu/apa ) is for Tootsie Roll Industries using the following formulas: your base amount is Total Revenue for the income statement and Total Assets for the balance sheet. use the analyses on this tab of the workbook to create your final project. trieved, whether from the Tootsie Roll website outside sources. swers.com/faq/32821 For general APA help, Year 2 Year 3 0 0 0 0 0 0 0 0 Year 2 Vertical Analysis Year 1 Year 2 Vertical Analysis Vertical Analysis Year 1 Year 2 0 0 0 0 0 0 0 0 Year 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Vertical Analysis 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TRI TRI Competition or Industry Ratio** Ratio Benchmarks Year 1 Year 2 Year 1 Greater than 1. Ideally greater than 1, but likely will be less than 1. Depends on industry, higher is better Less than 67% Higher the better, unless interest exp is 0. Depends on industry, higher is better ibanswers.com/faq/32821 ; APA Depends on industry, higher is better Depends on company. Would want to see stay stable or increase, not decrease. Depends on company. Remaining steady is good. Depends on company. Remaining steady is good. Horizontal Analysis Year 3 to 1 Horizontal Analysis Year 3 to 1