Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

My answers are partially correct. Is there anyone that can assist with this problem please? Question 7 The financial statements ofThe Hershey CompanyandTootsie Rollare presented

My answers are partially correct. Is there anyone that can assist with this problem please?
Question 7 The financial statements ofThe Hershey CompanyandTootsie Rollare presented below.
THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2011 2010 2009
In thousands of dollars except per share amounts
Net Sales $6,080,788 $5,671,009 $5,298,668
Costs and Expenses:
Cost of sales 3,548,896 3,255,801 3,245,531
Selling, marketing and administrative 1,477,750 1,426,477 1,208,672
Business realignment and impairment (credits) charges, net (886 ) 83,433 82,875
Total costs and expenses 5,025,760 4,765,711 4,537,078
Income before Interest and Income Taxes 1,055,028 905,298 761,590
Interest expense, net 92,183 96,434 90,459
Income before Income Taxes 962,845 808,864 671,131
Provision for income taxes 333,883 299,065 235,137
Net Income $628,962 $509,799 $435,994
Net Income Per ShareBasicClass B Common Stock $2.58 $2.08 $1.77
Net Income Per ShareDilutedClass B Common Stock $2.56 $2.07 $1.77
Net Income Per ShareBasicCommon Stock $2.85 $2.29 $1.97
Net Income Per ShareDilutedCommon Stock $2.74 $2.21 $1.90
Cash Dividends Paid Per Share:
Common Stock $1.3800 $1.2800 $1.1900
Class B Common Stock 1.2500 1.1600 1.0712
The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
THE HERSHEY COMPANY CONSOLIDATED BALANCE SHEETS
December 31, 2011 2010
In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents $693,686 $884,642
Accounts receivabletrade 399,499 390,061
Inventories 648,953 533,622
Deferred income taxes 136,861 55,760
Prepaid expenses and other 167,559 141,132
Total current assets 2,046,558 2,005,217
Property, Plant and Equipment, Net 1,559,717 1,437,702
Goodwill 516,745 524,134
Other Intangibles 111,913 123,080
Deferred Income Taxes 38,544 21,387
Other Assets 138,722 161,212
Total assets $4,412,199 $4,272,732
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable $420,017 $410,655
Accrued liabilities 612,186 593,308
Accrued income taxes 1,899 9,402
Short-term debt 42,080 24,088
Current portion of long-term debt 97,593 261,392
Total current liabilities 1,173,775 1,298,845
Long-term Debt 1,748,500 1,541,825
Other Long-term Liabilities 617,276 494,461
Total liabilities 3,539,551 3,335,131
Commitments and Contingencies
Stockholders Equity:
The Hershey Company Stockholders Equity
Preferred Stock, shares issued: none in 2011 and 2010
Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in 2010 299,269 299,195
Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 60,632 60,706
Additional paid-in capital 490,817 434,865
Retained earnings 4,699,597 4,374,718
TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 (4,258,962 ) (4,052,101 )
Accumulated other comprehensive loss (442,331 ) (215,067 )
The Hershey Company stockholders equity 849,022 902,316
Noncontrolling interests in subsidiaries 23,626 35,285
Total stockholders equity 872,648 937,601
Total liabilities and stockholdersequity $4,412,199 $4,272,732
THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2011 2010 2009
In thousands of dollars
Cash Flows Provided from (Used by) Operating Activities
Net income $628,962 $509,799 $435,994
Adjustments to reconcile net income to net cash provided from operations:
Depreciation and amortization 215,763 197,116 182,411
Stock-based compensation expense, net of tax of $15,127, $17,413 and $19,223, respectively 28,341 32,055 34,927
Excess tax benefits from stock-based compensation (13,997 ) (1,385 ) (4,455 )
Deferred income taxes 33,611 (18,654 ) (40,578 )
Gain on sale of trademark licensing rights, net of tax of $5,962 (11,072 )
Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively 30,838 77,935 60,823
Contributions to pension plans (8,861 ) (6,073 ) (54,457 )
Changes in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivabletrade (9,438 ) 20,329 46,584
Inventories (115,331 ) (13,910 ) 74,000
Accounts payable 7,860 90,434 37,228
Other assets and liabilities (205,809 ) 13,777 293,272
Net Cash Provided from Operating Activities 580,867 901,423 1,065,749
Cash Flows Provided from (Used by) Investing Activities
Capital additions (323,961 ) (179,538 ) (126,324 )
Capitalized software additions (23,606 ) (21,949 ) (19,146 )
Proceeds from sales of property, plant and equipment 312 2,201 10,364
Proceeds from sales of trademark licensing rights 20,000
Business acquisitions (5,750 ) (15,220 )
Net Cash (Used by) Investing Activities (333,005 ) (199,286 ) (150,326 )
Cash Flows Provided from (Used by) Financing Activities
Net change in short-term borrowings 10,834 1,156 (458,047 )
Long-term borrowings 249,126 348,208
Repayment of long-term debt (256,189 ) (71,548 ) (8,252 )
Proceeds from lease financing agreement 47,601
Cash dividends paid (304,083 ) (283,434 ) (263,403 )
Exercise of stock options 184,411 92,033 28,318
Excess tax benefits from stock-based compensation 13,997 1,385 4,455
Contributions from noncontrolling interests in subsidiaries 10,199 7,322
Repurchase of Common Stock (384,515 ) (169,099 ) (9,314 )
Net Cash (Used by) Financing Activities (438,818 ) (71,100 ) (698,921 )
(Decrease) Increase in Cash and Cash Equivalents (190,956 ) 631,037 216,502
Cash and Cash Equivalents as of January 1 884,642 253,605 37,103
Cash and Cash Equivalents as of December 31 $693,686 $884,642 $253,605
Interest Paid $97,892 $97,932 $91,623
Income Taxes Paid 292,315 350,948 252,230
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011 2010 2009
Net product sales $528,369 $517,149 $495,592
Rental and royalty revenue 4,136 4,299 3,739
Total revenue 532,505 521,448 499,331
Product cost of goods sold 365,225 349,334 319,775
Rental and royalty cost 1,038 1,088 852
Total costs 366,263 350,422 320,627
Product gross margin 163,144 167,815 175,817
Rental and royalty gross margin 3,098 3,211 2,887
Total gross margin 166,242 171,026 178,704
Selling, marketing and administrative expenses 108,276 106,316 103,755
Impairment charges 14,000
Earnings from operations 57,966 64,710 60,949
Other income (expense), net 2,946 8,358 2,100
Earnings before income taxes 60,912 73,068 63,049
Provision for income taxes 16,974 20,005 9,892
Net earnings $43,938

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Decision Making and Performance Management

Authors: Ray Proctor

4th edition

273764489, 978-0273764489

More Books

Students also viewed these Accounting questions

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago