please check the file for the question and the other file is for example to guide you how to complete the draft. this will just be a draft and the project will be written after the course project draft is done. please i want a good job on this paper because this is a masters degree program. thank you

Go to Doc Sharing for the detailed Course Project instructions and grading rubric. Complete your Title page on this tab. Please include your name, the course, the date, your instructor's name, and the title for the Project. Complete one paragraph profiling each company's business including information such as a brief history, where they are located, number of employees, the products they sell, etc. Please reference any websites you used used for the Profiles on the Bibliography tab. Tootsie Roll Industries began in a small candy store in New York in 1896. Tootsie Roll is now headquartered in Chicago with operations throughout North America and with distribution channels in over 75 countries. According to Yahoo Finance, Tootsie Roll has 2,200 full-time employees. Tootsie Roll sells the following branded candy: Tootsie Roll, Tootsie Roll Pop, Charms Blow Pop, Mason Dots, Andes, Sugar Daddy, Charleston Chew, Double Bubble, Razzles, Caramel Apple Pop, and Junior Mints. Tootsie Roll had 2009 net product sales of $496 million. Hershey Company was founded by Milton S. Hershey in 1893 and is headquartered in Hershey, Pennsylvania. According to Yahoo Finance, Hershey had 12,100 full-time employees. Hershey is famous for the Hershey Bar, Hershey's Kisses, Hershey's Bliss, Reese's, Twizzlers, Almond Joy, Kit Kat, and Ice Breakers. Hershey had net product sales of $5.3 billion for 2009. Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab and also include your commentary. The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook. Interpretation and Comparison between the two companies' ratios (Reading the Appendix of Chapter 13 will help you) Tootsie Hersheys Comparing these numbers is not meaningful since the number of shares outstanding differs. Earnings per share Working capital As given in the income statement Current assets minus current liabilities $0.95 $155,812 $155,812 Basic Common $1.97 $474,806 $474,806 Tootsie Roll has $155.8 million in working capital while Hershey has $474.8 million so Hershey has the advantage for this liquidity ratio. Tootsie Roll has $3.78 in current assets for every $1 dollar in current liabilities while Hershey only has $1.52 in current assets per $1 in current liabilities. Tootsie Roll has much greater liquidity based on this ratio. Current ratio Current assets Current liabilities $211,878 $56,066 = 3.78 $1,385,434 $910,628 = 1.52 Only product sales was used for the gross profit rate calculation. This ratio indicates that Hershey has a 3% advantage in gross profit margin. Gross Profit Ratio Gross profit Net Sales $176,947 $495,592 = 35.7% $2,053,137 $5,298,668 = 38.7% Total revenue was used for the base in Tootsie Roll's profit margin calculation because they also have rental and royalty revenue. Tootsie Roll earns almost 11 cents for every $1 dollar in sales whereas Hershey earns over 8 cents so the advantage goes to Tootsie Roll for this profitabiility ratio. Profit margin ratio Net Income Net Sales $53,475 $495,592 = 10.8% $435,994 $5,298,668 = 8.2% Hershey has a slight edge in this liquidity measure because they are selling their inventory faster than Tootsie Roll. Inventory Turnover Cost of Goods Sold Average Inventory $318,645 $55,986 5.7 times $3,245,531 $556,121 5.8 times This ratio measures the average number of days inventory is held. Since Hershey has the edge in inventory turnover, we also see that they take one less day than Tootsie Roll to sell their inventory. Days in Inventory 365 days Inventory turnover 365 5.7 = 64 days 365 5.8 = 63 days All sales are assumed to be credit sales for Tootsie Roll and Hershey. Tootsie Roll turns over their receivables at a 14.4 clip while Hershey turns their receivables 12.2 times so Tootsie has the advantage for this liquidity ratio which measures how quickly a company converts its receivables to cash. Receivable Turnover Ratio Average Collection Period Assets Turnover Ratio Return on Assets Ratio Net credit sales Average Net Receivables 365 Receivable Turnover Ratio Net Sales Average Total Assets Net Income Average Total Assets $495,592 $34,363 365 14.4 $495,592 $825,886 $53,475 $825,886 = = = = 14.4 25.3 days 0.60 6.5% $5,298,668 $432,772 365 12.2 $5,298,668 $3,654,875 $435,994 $3,654,875 = 12.2 = 29.8 = 1.45 = 11.9% This liquidity ratio measures the average number of days it takes for a company to collect their receivables. Since Tootsie Roll has the edge in receivables turnover, we also see that they take 4.5 less days than Hershey to convert their receivables to cash. Hershey has a significant advantage for this profitability ratio which measures how efficiently a company uses its assets to generate sales. Tootsie Roll earns 6.5 cents for every dollar of assets whereas Hershey earns 11.9 cents for every dollar of assets so Hershey has the advantage for this profitability ratio. Hershey would have to liquidate 79% of its assets at their book value to pay off all of its debts while Tootsie Roll would only have to liquidate 22% of its assets at their book value to pay off all of its debts so Tootsie Roll has the advantage for this solvency ratio. Debt to Total Assets Ratio Times Interest Earned Ratio Payout ratio Return on Common Stockholders' Equity Free cash flow Current cash debt coverage ratio Cash debt coverage ratio Price/Earnings ratio Total Liabilities Total Assets Net Income + Int Expense + Tax Expense Interest Expense Cash dividend declared on common stock Net income Net income - Preferred stock dividend Average common stockholders' equity Cash provided by operations minus capital expenditures minus cash dividends paid Cash provided by operations Average current liabilities Cash provided by operations Average total liabilities Market price as of 12/31/2009 EPS as of 12/31/2009 $185,762 $838,247 $64,422 $243 $17,825 $53,475 53,475 643,627.50 $36,625 = = = = = 22.2% 265.1 33.3% 8.3% $36,625 $2,914,692 $3,675,031 761,590 90,459 $263,403 $435,994 $435,994 $555,142 = 79.3% = 8.4 60.4% = $ This is a profitability ratio. Hershey distributed 60% of their earnings in the form of cash dividends while Tootsie Roll distributed 33% of their earnings in the form of cash dividends. 78.5% = $676,022 Tootsie Roll's income before interest and taxes is 265 times the amount needed to cover their interest expense while Hershey's income before interest and taxes is only 8 times the amount needed to cover their interest expense so Tootsie Roll has a large advantage for this solvency ratio. Tootsie Roll earns 8 cents in net income for every dollar invested by the common stockholders while Hershey earns 78 cents for every dollar invested so Hershey has a significant advantage for this profitability ratio. Hershey has $676 million in free cash flow while Tootsie Roll has $36 million so Hershey has the 676,022 advantage for this solvency ratio. = $75,281 $57,344 $75,281 $182,259 $27.38 $0.95 = = = 1.31 0.41 29 $1,065,749 $1,090,420 $1,065,749 $3,099,734 $35.79 $1.97 = = = 0.98 0.34 18 Tootsie Roll has $1.31 in cash provided by operating activities for every $1 dollar in average current liabilities while Hershey has 98 cents in cash provided by operating activities for every $1 dollar in average current liabilities so Tootsie Roll is stronger for this liquidity ratio. Tootsie Roll has 41 cents in cash provided by operating activities for every $1 dollar in average total liabilities while Hershey has 34 cents of cash provided by operating activities for every $1 dollar in average total liabilities so Tootsie Roll has the advantage for this solvency ratio. The stock prices were found at Bigcharts.com. Tootsie Roll has a higher price-earnings ratio than Hershey which means the market was more optimistic about Tootsie Roll than Hershey. You all get the chance to play the role of financial analyst below. The Summary should be a comparison of each company's performance for each major category of ratios (Liquidity, Solvency, and Profitability) listed below. Focus on major differences as you compare each company's performance. A nice way to conclude is to state which company you feel is the better investment and why. Liquidity: Tootsie Roll has the advantage for each of the liquidity ratios with the exception of the inventory turnover and days in inventory for which Hershey has a slight advantage. Tootsie Roll has a large advantage in liquidity as evidenced by the $3.78 in current assets they have for every in $1 in current liabilities while Hershey has only $1.52 in current assets for every dollar in current liabilities. Tootsie Roll also has a better current cash debt coverage ratio and the advantage for the receivables turnover and average collection period. Solvency: Tootsie Roll has the advantage for each of the solvency ratios with the exception of free cash flow. Tootsie Roll can cover their interest expense 265 times with income before interest and taxes while Hershey can only cover their interest expense 8 times with their income before interest and taxes. Hershey has $676 million in free cash flow while Tootsie Roll has approximately $37 million in free cash flow. Free cash flow can be used to undertake acquisitions, pay additional dividends, pay down debt, or by back stock. Profitability: Hershey has the advantage for each of the profitability ratios with the exception of the PriceEarnings and profit margin ratios. Hershey has a significant edge in asset turnover and return on common stockholders' equity. Hershey has $1.45 in sales for every dollar in assets while Tootsie Roll has 60 cents in sales for every dollar in assets. Hershey has a return on common stockholders' equity ratio of 78% compared to 8% for Tootsie Roll. Hershey also has a much larger payout ratio (60% to 33%). Conclusion: Tootsie Roll is the safer investment when you examine the liquidity and solvency ratios; however, Hershey has the edge for two significant profitability ratios. These ratios are return on common stockholders' equity and the payout ratio. That said, since I believe in the importance of fiscal strength, I would invest in Tootsie Roll; however, if I was looking for more growth potential, I would invest in Hershey because of their stronger profitability ratios. The Appendixes of your textbook and any information you use to profile the companies should be cited as a reference below. Big Charts (2011). Retrieved September 4, 2011 from http://bigcharts.marketwatch.com/historical/default.asp? symb=hsy&closeDate=12%2F31%2F09&x=0&y=0 Hershey's (2011). Retrieved September 4, 2011 from http://www.hersheys.com/pure-products.aspx HSY Profile (2011). Retrieved September 4, 2011 from http://finance.yahoo.com/q/pr?s=HSY+Profile Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making, 6th ed. Danvers, MA: John Wiley & Sons, Inc. Tootsie Roll Industries (2011). Retrieved September 4, 2011 from http://www.tootsie.com/ TR Profile (2011). Retrieved September 4, 2011 from http://finance.yahoo.com/q/pr?s=TR+Profile Your Course Project Financial Statement Analysis ProjectA Comparative Analysis of Kohl's Corporation and J.C. Penney Corporation Below is the link for the financial statements for Kohl's Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search. You should then scroll down and select the 10k dated 3/18/2011 and choose to download in Word or PDF format. http://www.kohlscorporation.com/InvestorRelations/sec-filings.htm Below is the link for the financial statements for J.C. Penney Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search. You should then scroll down and select the 10k dated 3/29/2011 and choose to download in Word format. http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec A sample project template is available for download in Doc Sharing. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2012 financial statements of Tootsie Roll and Hershey provided at their websites. Description This course contains a Course Project where you will be required to submit one draft of the project at the end of Week 5 and the final completed project at the end of Week 7. Using the financial statements for Kohl's Corporation and J.C. Penney Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2010 and prepare your comments about two companies' performance based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 7 and one grade will be assigned for the entire project. Overall Requirements For the Final Submission Your final Excel workbook submission should contain the following. You cannot use any software but Excel to complete this project. 1. A completed worksheet title page tab, which is really a cover sheet with your name, the course, the date, your instructor's name, and the title for the project 2. A completed worksheet profiles tab, which contains a one-paragraph description regarding each company with information about their histories, what products they sell, where they are located, and so on 3. All 16 ratios for each company with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as formulas or as text typed into different cells. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios. 4. The Summary and Conclusions worksheet tab, which is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 13 of your textbook. A nice way to conclude is to state which company you think is the better investment and why. 5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference. Required Ratios for Final Project Submission 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Earnings per Share of Common Stock Current Ratio Gross Profit Margin Rate of Return on Sales (Net Profit Margin) Inventory Turnover Days' Inventory Outstanding (DIO) Accounts Receivable Turnover Days' Sales Outstanding (DSO) Asset Turnover Rate of Return on Total Assets (ROA) Debt Ratio Times Interest Earned Ratio Dividend Yield (For the purposes of this ratio, use Yahoo Finance to look up current dividend yield and stock price; just note the date that you looked up this information.) 14. Rate of Return on Common Stockholders' Equity (ROE) 15. Free Cash Flow 16. Price/Earnings Ratio (Multiple) (For the purpose of this ratio, for both Kohl's and J.C. Penney, use the market price per share on January 31, 2011.) The Excel files uploaded in the Dropboxes should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.). Please upload your final submission to the Week 7 Dropbox by Sunday at the end of Week 7. For the Draft Create an Excel spreadsheet or use the project template to show your computations for the first 10 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as formulas or as text typed into different cells. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file. Please upload your draft submission to the Week 5 Dropbox by Sunday at the end of Week 5. Other Helpful Information If you feel uncomfortable with Excel, you can find many helpful references on Excel by performing a Google search. Chapter 13 contains ratio calculations and comparison comments related to Apple and Dell so you will likely find this information helpful. BigCharts.com provides historical stock quotes. Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Syllabus. Grade Information The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project. The project will count for 18% of your overall course grade. Category Points % Description Documentation and Formatting 9 5% The report will be submitted in the form of an Excel Workbook, with each page (worksheet) of the workbook named appropriately. Please do not use any other software (such as MS Works or Lotus) to complete the project. A quality report will include a title worksheet tab, a worksheet tab for the profile of the two companies, a worksheet tab for the ratio calculations and comments, a worksheet tab for the summary and conclusion, proper citations if applicable, and a Bibliography worksheet tab for the references. Organization and Cohesiveness 9 5% A quality report will include the content described above in the documentation and formatting section. The ratios should be listed in the same order in which they appear in the project information above. Editing 18 10% A quality report will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Ratios will be expressed as numbers or percentages, depending on what is appropriate, as is shown in the textbook. Note that not all ratios are shown as percentages. Two decimal places is sufficient for each of the ratios. Content 144 80% A quality report will have correct ratio calculations and accurate supporting commentary. Any assumptions, if made, should be spelled out clearly. Supporting calculations must be shown either as formulas or as text typed into different cells. Total 180 100% A quality report will meet or exceed all of the above requirements