Please see document attached.I need help with 6 question.

Question 1) The company's complete annual report, including the notes to its financial statements, is available in the Investor Relations section at www.zetarplc.com. Visit Zetar's corporate website and answer the following questions from Zetar's 2011 annual report. What is the approximate tax rate of Zetar's \"Tax on profit from continuing activities\"? (Round answer to 0 decimal places, e.g. 25%.) Zetar's tax rate is approximately % Question 2) The financial statements of The Hershey Company and Tootsie Roll are presented below. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2011 In thousands of dollars except per share amounts Net Sales $6,080,788 Costs and Expenses: Cost of sales 3,548,896 Selling, marketing and administrative 1,477,750 Business realignment and impairment (credits) charges, (886) net Total costs and expenses 5,025,760 Income before Interest and Income Taxes 1,055,028 Interest expense, net 92,183 Income before Income Taxes 962,845 Provision for income taxes 333,883 Net Income $628,962 Net Income Per ShareBasicClass B Common $2.58 Stock Net Income Per ShareDilutedClass B Common $2.56 Stock Net Income Per ShareBasicCommon Stock $2.85 Net Income Per ShareDilutedCommon Stock $2.74 2010 2009 $5,671,009 $5,298,668 3,255,801 1,426,477 3,245,531 1,208,672 83,433 82,875 4,765,711 905,298 96,434 808,864 299,065 $509,799 4,537,078 761,590 90,459 671,131 235,137 $435,994 $2.08 $1.77 $2.07 $1.77 $2.29 $1.97 $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 Accounts receivabletrade Inventories Deferred income taxes Prepaid expenses and other Total current assets Property, Plant and Equipment, Net Goodwill Other Intangibles Deferred Income Taxes Other Assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Long-term Debt Other Long-term Liabilities Total liabilities 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 Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 Additional paid-in capital Retained earnings TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 Accumulated other comprehensive loss The Hershey Company stockholders' equity Noncontrolling interests in subsidiaries Total stockholders' equity Total liabilities and stockholders'equity $693,686 399,499 648,953 136,861 167,559 2,046,558 1,559,717 516,745 111,913 38,544 138,722 $4,412,199 $884,642 390,061 533,622 55,760 141,132 2,005,217 1,437,702 524,134 123,080 21,387 161,212 $4,272,732 $420,017 612,186 1,899 42,080 97,593 1,173,775 1,748,500 617,276 3,539,551 $410,655 593,308 9,402 24,088 261,392 1,298,845 1,541,825 494,461 3,335,131 299,269 299,195 60,632 60,706 490,817 4,699,597 434,865 4,374,718 (4,258,962) (4,052,101) (442,331) 849,022 23,626 872,648 $4,412,199 (215,067) 902,316 35,285 937,601 $4,272,732 THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2011 2010 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 $509,799 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 197,116 Stock-based compensation expense, net of tax of $15,127, 28,341 32,055 $17,413 and $19,223, respectively 2009 $435,994 182,411 34,927 Excess tax benefits from stock-based compensation Deferred income taxes Gain on sale of trademark licensing rights, net of tax of $5,962 Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively Contributions to pension plans Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade Inventories Accounts payable Other assets and liabilities Net Cash Provided from Operating Activities Cash Flows Provided from (Used by) Investing Activities Capital additions Capitalized software additions Proceeds from sales of property, plant and equipment Proceeds from sales of trademark licensing rights Business acquisitions Net Cash (Used by) Investing Activities Cash Flows Provided from (Used by) Financing Activities Net change in short-term borrowings Long-term borrowings Repayment of long-term debt Proceeds from lease financing agreement Cash dividends paid Exercise of stock options Excess tax benefits from stock-based compensation Contributions from noncontrolling interests in subsidiaries Repurchase of Common Stock Net Cash (Used by) Financing Activities (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents as of January 1 Cash and Cash Equivalents as of December 31 Interest Paid Income Taxes Paid (13,997) 33,611 (11,072) (1,385) (18,654) (4,455) (40,578) 30,838 77,935 60,823 (8,861) (6,073) (9,438) (115,331) 7,860 (205,809) 580,867 20,329 (13,910) 90,434 13,777 901,423 (323,961) (23,606) 312 20,000 (5,750) (333,005) (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 10,834 249,126 (256,189) 47,601 (304,083) 184,411 13,997 (384,515) (438,818) (190,956) 884,642 $693,686 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (169,099) (71,100) 631,037 253,605 $884,642 (458,047) (8,252) (263,403) 28,318 4,455 7,322 (9,314) (698,921) 216,502 37,103 $253,605 $97,892 292,315 $97,932 350,948 $91,623 252,230 (54,457) 46,584 74,000 37,228 293,272 1,065,749 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 Earnings from operations 57,966 64,710 Other income (expense), net 2,946 8,358 Earnings before income taxes 60,912 73,068 Provision for income taxes 16,974 20,005 Net earnings $43,938 $53,063 Net earnings $43,938 $53,063 Other comprehensive earnings (loss) (8,740) 1,183 Comprehensive earnings $35,198 $54,246 Retained earnings at beginning of year. $135,866 $147,687 Net earnings 43,938 53,063 Cash dividends (18,360) (18,078) Stock dividends (47,175) (46,806) Retained earnings at end of year $114,269 $135,866 Earnings per share $0.76 $0.90 Average Common and Class B Common shares outstanding 57,892 58,685 (The accompanying notes are an integral part of these statements.) 14,000 60,949 2,100 63,049 9,892 $53,157 $53,157 2,845 $56,002 $144,949 53,157 (17,790) (32,629) $147,687 $0.89 59,425 CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) Assets December 31, 2011 2010 CURRENT ASSETS: Cash and cash equivalents $78,612 $115,976 Investments 10,895 7,996 Accounts receivable trade, less allowances of $1,731 and $1,531 41,895 37,394 Other receivables 3,391 9,961 Inventories: Finished goods and work-in-process 42,676 35,416 Raw materials and supplies 29,084 21,236 Prepaid expenses 5,070 6,499 Deferred income taxes 578 689 Total current assets 212,201 235,167 PROPERTY, PLANT AND EQUIPMENT, at cost: Land 21,939 21,696 Buildings 107,567 102,934 Machinery and equipment 322,993 307,178 Construction in progress 2,598 9,243 455,097 440,974 LessAccumulated depreciation 242,935 225,482 Net property, plant and equipment 212,162 215,492 OTHER ASSETS: Goodwill 73,237 73,237 Trademarks 175,024 175,024 Investments 96,161 64,461 Split dollar officer life insurance 74,209 74,441 Prepaid expenses 3,212 6,680 Equity method investment 3,935 4,254 Deferred income taxes 7,715 9,203 Total other assets 433,493 407,300 Total assets $857,856 $857,959 Liabilities and Shareholders' Equity December 31, 2011 2010 CURRENT LIABILITIES: Accounts payable Dividends payable Accrued liabilities Total current liabilities NONCURRENT LIABILITES: Deferred income taxes Postretirement health care and life insurance benefits Industrial development bonds Liability for uncertain tax positions Deferred compensation and other liabilities Total noncurrent liabilities SHAREHOLDERS' EQUITY: Common stock, $.69-4/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued Class B common stock, $.69-4/9 par value40,000 shares authorized 21,025 and 20,466 respectively, issued Capital in excess of par value Retained earnings, per accompanying statement Accumulated other comprehensive loss Treasury stock (at cost)71 shares and 69 shares, respectively Total shareholders' equity Total liabilities and shareholders' equity $10,683 4,603 43,069 58,355 $9,791 4,529 44,185 58,505 43,521 26,108 7,500 8,345 48,092 133,566 47,865 20,689 7,500 9,835 46,157 132,046 25,333 25,040 14,601 14,212 533,677 114,269 (19,953) (1,992) 665,935 $857,856 505,495 135,866 (11,213) (1,992) 667,408 $857,959 TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 19,229 18,279 17,862 Impairment charges 14,000 Impairment of equity method investment 4,400 Loss from equity method investment 194 342 233 Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and liabilities: Accounts receivable (5,448) 717 (5,899) Other receivables 3,963 (2,373) (2,088) Inventories (15,631) (1,447) 455 Prepaid expenses and other assets 5,106 4,936 5,203 Accounts payable and accrued liabilities 84 2,180 (2,755) Income taxes payable and deferred (5,772) 2,322 (12,543) Postretirement health care and life insurance benefits 2,022 1,429 1,384 Deferred compensation and other liabilities 2,146 2,525 2,960 Others (708) 310 305 Net cash provided by operating activities 50,390 82,805 76,994 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (16,351) (12,813) (20,831) Net purchase of trading securities (3,234) (2,902) (1,713) Purchase of available for sale securities (39,252) (9,301) (11,331) Sale and maturity of available for sale securities 7,680 8,208 17,511 Net cash used in investing activities (51,157) (16,808) (16,364) CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired Dividends paid in cash Net cash used in financing activities (18,190) (18,407) (36,597) (22,881) (18,130) (41,011) (20,723) (17,825) (38,548) Increase (decrease) in cash and cash equivalents (37,364) 24,986 22,082 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 115,976 $78,612 90,990 $115,976 68,908 $90,990 Supplemental cash flow information Income taxes paid $16,906 $20,586 Interest paid $38 $49 Stock dividend issued $47,053 $46,683 (The accompanying notes are an integral part of these statements.) $22,364 $182 $32,538 Based on the information contained in these financial statements, determine the following values for each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers to thousands.) (1) Profit margin for 2011. (For Tootsie Roll, use \"Total Revenue.\") Profit margin ratio Tootsie Roll % Hershey Company % (2) Gross profit for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit (000's) Tootsie Roll Hershey Company $ $ (3) Gross profit rate for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit rate Tootsie Roll % Hershey Company % (4) Operating income for 2011. Operating income (000's) Tootsie Roll Hershey Company $ $ (5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.) Percent change in operating income Tootsie Roll % Hershey Company % Question 3) Gerish Company buys merchandise on account from Mangus Company. The selling price of the goods is $1,489 and the cost of the goods sold is $616. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Gerish Company Mangus Company (To record sale of merchandise) Question 4) Debit Credit The financial statements of The Hershey Company and Tootsie Roll are presented below. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2011 In thousands of dollars except per share amounts Net Sales $6,080,788 Costs and Expenses: Cost of sales 3,548,896 Selling, marketing and administrative 1,477,750 Business realignment and impairment (credits) charges, (886) net Total costs and expenses 5,025,760 Income before Interest and Income Taxes 1,055,028 Interest expense, net 92,183 Income before Income Taxes 962,845 Provision for income taxes 333,883 Net Income $628,962 Net Income Per ShareBasicClass B Common $2.58 Stock Net Income Per ShareDilutedClass B Common $2.56 Stock Net Income Per ShareBasicCommon Stock $2.85 Net Income Per ShareDilutedCommon Stock $2.74 2010 2009 $5,671,009 $5,298,668 3,255,801 1,426,477 3,245,531 1,208,672 83,433 82,875 4,765,711 905,298 96,434 808,864 299,065 $509,799 4,537,078 761,590 90,459 671,131 235,137 $435,994 $2.08 $1.77 $2.07 $1.77 $2.29 $1.97 $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, In thousands of dollars ASSETS Current Assets: Cash and cash equivalents Accounts receivabletrade Inventories Deferred income taxes Prepaid expenses and other Total current assets Property, Plant and Equipment, Net Goodwill Other Intangibles Deferred Income Taxes Other Assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt 2011 2010 $693,686 399,499 648,953 136,861 167,559 2,046,558 1,559,717 516,745 111,913 38,544 138,722 $4,412,199 $884,642 390,061 533,622 55,760 141,132 2,005,217 1,437,702 524,134 123,080 21,387 161,212 $4,272,732 $420,017 612,186 1,899 42,080 97,593 $410,655 593,308 9,402 24,088 261,392 Total current liabilities Long-term Debt Other Long-term Liabilities Total liabilities 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 Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 Additional paid-in capital Retained earnings TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 Accumulated other comprehensive loss The Hershey Company stockholders' equity Noncontrolling interests in subsidiaries Total stockholders' equity Total liabilities and stockholders'equity 1,173,775 1,748,500 617,276 3,539,551 1,298,845 1,541,825 494,461 3,335,131 299,269 299,195 60,632 60,706 490,817 4,699,597 434,865 4,374,718 (4,258,962) (4,052,101) (442,331) 849,022 23,626 872,648 $4,412,199 (215,067) 902,316 35,285 937,601 $4,272,732 THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2011 2010 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 $509,799 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 197,116 Stock-based compensation expense, net of tax of $15,127, 28,341 32,055 $17,413 and $19,223, respectively Excess tax benefits from stock-based compensation (13,997) (1,385) Deferred income taxes 33,611 (18,654) Gain on sale of trademark licensing rights, net of tax of (11,072) $5,962 Business realignment and impairment charges, net of tax of 30,838 77,935 $18,333, $20,635 and $38,308, respectively Contributions to pension plans (8,861) (6,073) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) 20,329 Inventories (115,331) (13,910) Accounts payable 7,860 90,434 Other assets and liabilities (205,809) 13,777 Net Cash Provided from Operating Activities 580,867 901,423 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) (179,538) Capitalized software additions (23,606) (21,949) Proceeds from sales of property, plant and equipment 312 2,201 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) (199,286) Cash Flows Provided from (Used by) Financing 2009 $435,994 182,411 34,927 (4,455) (40,578) 60,823 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (126,324) (19,146) 10,364 (15,220) (150,326) Activities Net change in short-term borrowings Long-term borrowings Repayment of long-term debt Proceeds from lease financing agreement Cash dividends paid Exercise of stock options Excess tax benefits from stock-based compensation Contributions from noncontrolling interests in subsidiaries Repurchase of Common Stock Net Cash (Used by) Financing Activities (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents as of January 1 Cash and Cash Equivalents as of December 31 Interest Paid Income Taxes Paid 10,834 249,126 (256,189) 47,601 (304,083) 184,411 13,997 (384,515) (438,818) (190,956) 884,642 $693,686 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (169,099) (71,100) 631,037 253,605 $884,642 (458,047) (8,252) (263,403) 28,318 4,455 7,322 (9,314) (698,921) 216,502 37,103 $253,605 $97,892 292,315 $97,932 350,948 $91,623 252,230 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 $53,063 $53,157 Net earnings $43,938 $53,063 $53,157 Other comprehensive earnings (loss) (8,740) 1,183 2,845 Comprehensive earnings $35,198 $54,246 $56,002 Retained earnings at beginning of year. $135,866 $147,687 $144,949 Net earnings 43,938 53,063 53,157 Cash dividends (18,360) (18,078) (17,790) Stock dividends (47,175) (46,806) (32,629) Retained earnings at end of year $114,269 $135,866 $147,687 Earnings per share $0.76 $0.90 $0.89 Average Common and Class B Common shares outstanding 57,892 58,685 59,425 (The accompanying notes are an integral part of these statements.) CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) Assets December 31, 2011 CURRENT ASSETS: Cash and cash equivalents Investments Accounts receivable trade, less allowances of $1,731 and $1,531 Other receivables Inventories: Finished goods and work-in-process Raw materials and supplies Prepaid expenses Deferred income taxes Total current assets PROPERTY, PLANT AND EQUIPMENT, at cost: Land Buildings Machinery and equipment Construction in progress LessAccumulated depreciation Net property, plant and equipment OTHER ASSETS: Goodwill Trademarks Investments Split dollar officer life insurance Prepaid expenses Equity method investment Deferred income taxes Total other assets Total assets Liabilities and Shareholders' Equity CURRENT LIABILITIES: Accounts payable Dividends payable Accrued liabilities Total current liabilities NONCURRENT LIABILITES: Deferred income taxes Postretirement health care and life insurance benefits Industrial development bonds Liability for uncertain tax positions Deferred compensation and other liabilities Total noncurrent liabilities SHAREHOLDERS' EQUITY: Common stock, $.69-4/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued Class B common stock, $.69-4/9 par value40,000 shares authorized 21,025 and 20,466 respectively, issued Capital in excess of par value Retained earnings, per accompanying statement Accumulated other comprehensive loss Treasury stock (at cost)71 shares and 69 shares, respectively Total shareholders' equity 2010 $78,612 10,895 41,895 3,391 $115,976 7,996 37,394 9,961 42,676 29,084 5,070 578 212,201 35,416 21,236 6,499 689 235,167 21,939 107,567 322,993 2,598 455,097 242,935 212,162 21,696 102,934 307,178 9,243 440,974 225,482 215,492 73,237 175,024 96,161 74,209 3,212 3,935 7,715 433,493 $857,856 73,237 175,024 64,461 74,441 6,680 4,254 9,203 407,300 $857,959 December 31, 2011 2010 $10,683 4,603 43,069 58,355 $9,791 4,529 44,185 58,505 43,521 26,108 7,500 8,345 48,092 133,566 47,865 20,689 7,500 9,835 46,157 132,046 25,333 25,040 14,601 14,212 533,677 114,269 (19,953) (1,992) 665,935 505,495 135,866 (11,213) (1,992) 667,408 Total liabilities and shareholders' equity $857,856 $857,959 TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 19,229 18,279 17,862 Impairment charges 14,000 Impairment of equity method investment 4,400 Loss from equity method investment 194 342 233 Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and liabilities: Accounts receivable (5,448) 717 (5,899) Other receivables 3,963 (2,373) (2,088) Inventories (15,631) (1,447) 455 Prepaid expenses and other assets 5,106 4,936 5,203 Accounts payable and accrued liabilities 84 2,180 (2,755) Income taxes payable and deferred (5,772) 2,322 (12,543) Postretirement health care and life insurance benefits 2,022 1,429 1,384 Deferred compensation and other liabilities 2,146 2,525 2,960 Others (708) 310 305 Net cash provided by operating activities 50,390 82,805 76,994 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (16,351) (12,813) (20,831) Net purchase of trading securities (3,234) (2,902) (1,713) Purchase of available for sale securities (39,252) (9,301) (11,331) Sale and maturity of available for sale securities 7,680 8,208 17,511 Net cash used in investing activities (51,157) (16,808) (16,364) CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired (18,190) (22,881) (20,723) Dividends paid in cash (18,407) (18,130) (17,825) Net cash used in financing activities (36,597) (41,011) (38,548) Increase (decrease) in cash and cash equivalents (37,364) 24,986 22,082 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 115,976 $78,612 90,990 $115,976 68,908 $90,990 Supplemental cash flow information Income taxes paid $16,906 $20,586 Interest paid $38 $49 Stock dividend issued $47,053 $46,683 (The accompanying notes are an integral part of these statements.) $22,364 $182 $32,538 Based on the information contained in these financial statements, determine the following values for each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers to thousands.) (1) Profit margin for 2011. (For Tootsie Roll, use \"Total Revenue.\") Profit margin ratio Tootsie Roll % Hershey Company % (2) Gross profit for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit (000's) Tootsie Roll Hershey Company $ $ (3) Gross profit rate for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit rate Tootsie Roll % Hershey Company % (4) Operating income for 2011. Operating income (000's) Tootsie Roll Hershey Company $ $ (5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.) Percent change in operating income Tootsie Roll % Hershey Company % +================================================================================ QUESTION 5) Presented here are the components in Casilla Company's income statement. Determine the missing amounts. Sales Revenue Year 1 $ 72,500 Year 2 Cost of Goods Sold $ $112,100 $ Year 3 $74,480 (e) $73,790 Gross Profit (a) $ 33,310 $ (c) $112,200 Operating Expenses $ Net Income $14,180 (d) $ (b) $29,650 $49,670 QUESTION 6) Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed. July 1 1 3 5 12 18 20 21 25 31 31 Issued 16,197 shares of common stock for $16,197 cash. Purchased used truck for $12,197, paying $2,206 cash and the balance on account. Purchased cleaning supplies for $941 on account. Paid $2,400 cash on a 1-year insurance policy effective July 1. Billed customers $4,900 for cleaning services. Paid $1,293 cash on amount owed on truck and $541 on amount owed on cleaning supplies. Paid $2,249 cash for employee salaries. Collected $1,634 cash from customers billed on July 12. Billed customers $2,667 for cleaning services. Paid $365 for maintenance of the truck during month. Declared and paid $634 cash dividend. $ (f) Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous question.) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Common Stock Dividends Service Revenue Maintenance and Repairs Expense Salaries and Wages Expense SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a trial balance at July 31. CLEAN WINDOW WASHING INC. Trial Balance July 31, 2014 Debit Credit $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT $ $ Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (1) (2) (3) (4) (5) Services performed but unbilled and uncollected at July 31 were $1,866. Depreciation on equipment for the month was $211. One-twelfth of the insurance expired. An inventory count shows $320 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $424. No Account Titles and . Explanation 1. 2. 3. 4. 5. SHOW LIST OF ACCOUNTS LINK TO TEXT Debit Credit Post adjusting entries to the T-accounts. Cash 7/1 7/21 16,197 7/1 2,206 1,634 7/5 2,400 7/18 7/20 2,249 7/31 365 7/31 7/31 Bal. 1,834 634 8,143 Accounts Receivable 7/12 4,900 7/21 7/25 2,667 Supplies 7/3 941 Prepaid Insurance 7/5 2,400 Equipment 7/1 12,197 7/31 Bal. 12,197 Accumulated Depreciation-Equipment Accounts Payable 1,634 7/18 1,834 7/1 9,991 7/3 941 7/31 Bal. 9,098 Salaries and Wages Payable Common Stock 7/1 16,197 7/31 Bal. 16,197 Dividends 7/31 634 7/31 Bal. 634 Service Revenue 7/12 4,900 7/25 2,667 Maintenance and Repairs Expense 7/31 365 7/31 Bal. 365 Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense 7/20 2,249 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare an adjusted trial balance. CLEAN WINDOW WASHING INC. Trial Balance July 31, 2014 Debit Credit $ $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the income statement for July. CLEAN WINDOW WASHING INC. Income Statement For the Month Ended July 31, 2014 $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a retained earnings statement for July. (List items that increase retained earnings first.) CLEAN WINDOW WASHING INC. Retained Earnings Statement For the Month Ended July 31, 2014 $ : : $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.) CLEAN WINDOW WASHING INC. Balance Sheet July 31, 2014 Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Journalize closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation (To close revenue account) (To close expense accounts) Debit Credit (To close net income / (loss)) (To close dividends) SHOW LIST OF ACCOUNTS LINK TO TEXT Post closing entries and complete the closing process. Cash 7/1 7/21 16,197 7/1 2,206 1,634 7/5 2,400 7/18 7/20 2,249 7/31 365 7/31 7/31 Bal. 1,834 634 8,143 Accounts Receivable 7/12 4,900 7/21 7/25 2,667 7/31 1,866 7/31 Bal. 1,634 7,799 Supplies 7/3 941 7/31 7/31 Bal. 621 320 Prepaid Insurance 7/5 2,400 7/31 7/31 Bal. 2,200 Equipment 200 7/1 7/31 Bal. 12,197 12,197 Accumulated Depreciation-Equipment 7/31 211 7/31 Bal. 211 Accounts Payable 7/18 1,834 7/1 9,991 7/3 941 7/31 Bal. 9,098 Salaries and Wages Payable 7/31 424 7/31 Bal. 424 Common Stock 7/1 16,197 7/31 Bal. 16,197 Retained Earnings Dividends 7/31 634 Income Summary Service Revenue 7/12 4,900 7/25 2,667 7/31 Maintenance and Repairs Expense 7/31 365 Supplies Expense 7/31 621 Depreciation Expense 7/31 211 Insurance Expense 7/31 200 Salaries and Wages Expense 7/20 2,249 7/31 424 SHOW LIST OF ACCOUNTS LINK TO TEXT 1,866 Prepare a post-closing trial balance at July 31. CLEAN WINDOW WASHING INC. Post-Closing Trial Balance July 31, 2014 Debit Credit $ $ SHOW LIST OF ACCOUNTS $ $ Question 1) The company's complete annual report, including the notes to its financial statements, is available in the Investor Relations section at www.zetarplc.com. Visit Zetar's corporate website and answer the following questions from Zetar's 2011 annual report. What is the approximate tax rate of Zetar's \"Tax on profit from continuing activities\"? (Round answer to 0 decimal places, e.g. 25%.) Zetar's tax rate is approximately % Question 2) The financial statements of The Hershey Company and Tootsie Roll are presented below. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2011 In thousands of dollars except per share amounts Net Sales $6,080,788 Costs and Expenses: Cost of sales 3,548,896 Selling, marketing and administrative 1,477,750 Business realignment and impairment (credits) charges, (886) net Total costs and expenses 5,025,760 Income before Interest and Income Taxes 1,055,028 Interest expense, net 92,183 Income before Income Taxes 962,845 Provision for income taxes 333,883 Net Income $628,962 Net Income Per ShareBasicClass B Common $2.58 Stock Net Income Per ShareDilutedClass B Common $2.56 Stock Net Income Per ShareBasicCommon Stock $2.85 Net Income Per ShareDilutedCommon Stock $2.74 2010 2009 $5,671,009 $5,298,668 3,255,801 1,426,477 3,245,531 1,208,672 83,433 82,875 4,765,711 905,298 96,434 808,864 299,065 $509,799 4,537,078 761,590 90,459 671,131 235,137 $435,994 $2.08 $1.77 $2.07 $1.77 $2.29 $1.97 $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 Accounts receivabletrade Inventories Deferred income taxes Prepaid expenses and other Total current assets Property, Plant and Equipment, Net Goodwill Other Intangibles Deferred Income Taxes Other Assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Long-term Debt Other Long-term Liabilities Total liabilities 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 Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 Additional paid-in capital Retained earnings TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 Accumulated other comprehensive loss The Hershey Company stockholders' equity Noncontrolling interests in subsidiaries Total stockholders' equity Total liabilities and stockholders'equity $693,686 399,499 648,953 136,861 167,559 2,046,558 1,559,717 516,745 111,913 38,544 138,722 $4,412,199 $884,642 390,061 533,622 55,760 141,132 2,005,217 1,437,702 524,134 123,080 21,387 161,212 $4,272,732 $420,017 612,186 1,899 42,080 97,593 1,173,775 1,748,500 617,276 3,539,551 $410,655 593,308 9,402 24,088 261,392 1,298,845 1,541,825 494,461 3,335,131 299,269 299,195 60,632 60,706 490,817 4,699,597 434,865 4,374,718 (4,258,962) (4,052,101) (442,331) 849,022 23,626 872,648 $4,412,199 (215,067) 902,316 35,285 937,601 $4,272,732 THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2011 2010 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 $509,799 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 197,116 Stock-based compensation expense, net of tax of $15,127, 28,341 32,055 $17,413 and $19,223, respectively 2009 $435,994 182,411 34,927 Excess tax benefits from stock-based compensation Deferred income taxes Gain on sale of trademark licensing rights, net of tax of $5,962 Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively Contributions to pension plans Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade Inventories Accounts payable Other assets and liabilities Net Cash Provided from Operating Activities Cash Flows Provided from (Used by) Investing Activities Capital additions Capitalized software additions Proceeds from sales of property, plant and equipment Proceeds from sales of trademark licensing rights Business acquisitions Net Cash (Used by) Investing Activities Cash Flows Provided from (Used by) Financing Activities Net change in short-term borrowings Long-term borrowings Repayment of long-term debt Proceeds from lease financing agreement Cash dividends paid Exercise of stock options Excess tax benefits from stock-based compensation Contributions from noncontrolling interests in subsidiaries Repurchase of Common Stock Net Cash (Used by) Financing Activities (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents as of January 1 Cash and Cash Equivalents as of December 31 Interest Paid Income Taxes Paid (13,997) 33,611 (11,072) (1,385) (18,654) (4,455) (40,578) 30,838 77,935 60,823 (8,861) (6,073) (9,438) (115,331) 7,860 (205,809) 580,867 20,329 (13,910) 90,434 13,777 901,423 (323,961) (23,606) 312 20,000 (5,750) (333,005) (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 10,834 249,126 (256,189) 47,601 (304,083) 184,411 13,997 (384,515) (438,818) (190,956) 884,642 $693,686 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (169,099) (71,100) 631,037 253,605 $884,642 (458,047) (8,252) (263,403) 28,318 4,455 7,322 (9,314) (698,921) 216,502 37,103 $253,605 $97,892 292,315 $97,932 350,948 $91,623 252,230 (54,457) 46,584 74,000 37,228 293,272 1,065,749 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 Earnings from operations 57,966 64,710 Other income (expense), net 2,946 8,358 Earnings before income taxes 60,912 73,068 Provision for income taxes 16,974 20,005 Net earnings $43,938 $53,063 Net earnings $43,938 $53,063 Other comprehensive earnings (loss) (8,740) 1,183 Comprehensive earnings $35,198 $54,246 Retained earnings at beginning of year. $135,866 $147,687 Net earnings 43,938 53,063 Cash dividends (18,360) (18,078) Stock dividends (47,175) (46,806) Retained earnings at end of year $114,269 $135,866 Earnings per share $0.76 $0.90 Average Common and Class B Common shares outstanding 57,892 58,685 (The accompanying notes are an integral part of these statements.) 14,000 60,949 2,100 63,049 9,892 $53,157 $53,157 2,845 $56,002 $144,949 53,157 (17,790) (32,629) $147,687 $0.89 59,425 CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) Assets December 31, 2011 2010 CURRENT ASSETS: Cash and cash equivalents $78,612 $115,976 Investments 10,895 7,996 Accounts receivable trade, less allowances of $1,731 and $1,531 41,895 37,394 Other receivables 3,391 9,961 Inventories: Finished goods and work-in-process 42,676 35,416 Raw materials and supplies 29,084 21,236 Prepaid expenses 5,070 6,499 Deferred income taxes 578 689 Total current assets 212,201 235,167 PROPERTY, PLANT AND EQUIPMENT, at cost: Land 21,939 21,696 Buildings 107,567 102,934 Machinery and equipment 322,993 307,178 Construction in progress 2,598 9,243 455,097 440,974 LessAccumulated depreciation 242,935 225,482 Net property, plant and equipment 212,162 215,492 OTHER ASSETS: Goodwill 73,237 73,237 Trademarks 175,024 175,024 Investments 96,161 64,461 Split dollar officer life insurance 74,209 74,441 Prepaid expenses 3,212 6,680 Equity method investment 3,935 4,254 Deferred income taxes 7,715 9,203 Total other assets 433,493 407,300 Total assets $857,856 $857,959 Liabilities and Shareholders' Equity December 31, 2011 2010 CURRENT LIABILITIES: Accounts payable Dividends payable Accrued liabilities Total current liabilities NONCURRENT LIABILITES: Deferred income taxes Postretirement health care and life insurance benefits Industrial development bonds Liability for uncertain tax positions Deferred compensation and other liabilities Total noncurrent liabilities SHAREHOLDERS' EQUITY: Common stock, $.69-4/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued Class B common stock, $.69-4/9 par value40,000 shares authorized 21,025 and 20,466 respectively, issued Capital in excess of par value Retained earnings, per accompanying statement Accumulated other comprehensive loss Treasury stock (at cost)71 shares and 69 shares, respectively Total shareholders' equity Total liabilities and shareholders' equity $10,683 4,603 43,069 58,355 $9,791 4,529 44,185 58,505 43,521 26,108 7,500 8,345 48,092 133,566 47,865 20,689 7,500 9,835 46,157 132,046 25,333 25,040 14,601 14,212 533,677 114,269 (19,953) (1,992) 665,935 $857,856 505,495 135,866 (11,213) (1,992) 667,408 $857,959 TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 19,229 18,279 17,862 Impairment charges 14,000 Impairment of equity method investment 4,400 Loss from equity method investment 194 342 233 Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and liabilities: Accounts receivable (5,448) 717 (5,899) Other receivables 3,963 (2,373) (2,088) Inventories (15,631) (1,447) 455 Prepaid expenses and other assets 5,106 4,936 5,203 Accounts payable and accrued liabilities 84 2,180 (2,755) Income taxes payable and deferred (5,772) 2,322 (12,543) Postretirement health care and life insurance benefits 2,022 1,429 1,384 Deferred compensation and other liabilities 2,146 2,525 2,960 Others (708) 310 305 Net cash provided by operating activities 50,390 82,805 76,994 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (16,351) (12,813) (20,831) Net purchase of trading securities (3,234) (2,902) (1,713) Purchase of available for sale securities (39,252) (9,301) (11,331) Sale and maturity of available for sale securities 7,680 8,208 17,511 Net cash used in investing activities (51,157) (16,808) (16,364) CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired Dividends paid in cash Net cash used in financing activities (18,190) (18,407) (36,597) (22,881) (18,130) (41,011) (20,723) (17,825) (38,548) Increase (decrease) in cash and cash equivalents (37,364) 24,986 22,082 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 115,976 $78,612 90,990 $115,976 68,908 $90,990 Supplemental cash flow information Income taxes paid $16,906 $20,586 Interest paid $38 $49 Stock dividend issued $47,053 $46,683 (The accompanying notes are an integral part of these statements.) $22,364 $182 $32,538 Based on the information contained in these financial statements, determine the following values for each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers to thousands.) (1) Profit margin for 2011. (For Tootsie Roll, use \"Total Revenue.\") Profit margin ratio Tootsie Roll % Hershey Company % (2) Gross profit for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit (000's) Tootsie Roll Hershey Company $ $ (3) Gross profit rate for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit rate Tootsie Roll % Hershey Company % (4) Operating income for 2011. Operating income (000's) Tootsie Roll Hershey Company $ $ (5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.) Percent change in operating income Tootsie Roll % Hershey Company % Question 3) Gerish Company buys merchandise on account from Mangus Company. The selling price of the goods is $1,489 and the cost of the goods sold is $616. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Gerish Company Mangus Company (To record sale of merchandise) Question 4) Debit Credit The financial statements of The Hershey Company and Tootsie Roll are presented below. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2011 In thousands of dollars except per share amounts Net Sales $6,080,788 Costs and Expenses: Cost of sales 3,548,896 Selling, marketing and administrative 1,477,750 Business realignment and impairment (credits) charges, (886) net Total costs and expenses 5,025,760 Income before Interest and Income Taxes 1,055,028 Interest expense, net 92,183 Income before Income Taxes 962,845 Provision for income taxes 333,883 Net Income $628,962 Net Income Per ShareBasicClass B Common $2.58 Stock Net Income Per ShareDilutedClass B Common $2.56 Stock Net Income Per ShareBasicCommon Stock $2.85 Net Income Per ShareDilutedCommon Stock $2.74 2010 2009 $5,671,009 $5,298,668 3,255,801 1,426,477 3,245,531 1,208,672 83,433 82,875 4,765,711 905,298 96,434 808,864 299,065 $509,799 4,537,078 761,590 90,459 671,131 235,137 $435,994 $2.08 $1.77 $2.07 $1.77 $2.29 $1.97 $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, In thousands of dollars ASSETS Current Assets: Cash and cash equivalents Accounts receivabletrade Inventories Deferred income taxes Prepaid expenses and other Total current assets Property, Plant and Equipment, Net Goodwill Other Intangibles Deferred Income Taxes Other Assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt 2011 2010 $693,686 399,499 648,953 136,861 167,559 2,046,558 1,559,717 516,745 111,913 38,544 138,722 $4,412,199 $884,642 390,061 533,622 55,760 141,132 2,005,217 1,437,702 524,134 123,080 21,387 161,212 $4,272,732 $420,017 612,186 1,899 42,080 97,593 $410,655 593,308 9,402 24,088 261,392 Total current liabilities Long-term Debt Other Long-term Liabilities Total liabilities 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 Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 Additional paid-in capital Retained earnings TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 Accumulated other comprehensive loss The Hershey Company stockholders' equity Noncontrolling interests in subsidiaries Total stockholders' equity Total liabilities and stockholders'equity 1,173,775 1,748,500 617,276 3,539,551 1,298,845 1,541,825 494,461 3,335,131 299,269 299,195 60,632 60,706 490,817 4,699,597 434,865 4,374,718 (4,258,962) (4,052,101) (442,331) 849,022 23,626 872,648 $4,412,199 (215,067) 902,316 35,285 937,601 $4,272,732 THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2011 2010 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 $509,799 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 197,116 Stock-based compensation expense, net of tax of $15,127, 28,341 32,055 $17,413 and $19,223, respectively Excess tax benefits from stock-based compensation (13,997) (1,385) Deferred income taxes 33,611 (18,654) Gain on sale of trademark licensing rights, net of tax of (11,072) $5,962 Business realignment and impairment charges, net of tax of 30,838 77,935 $18,333, $20,635 and $38,308, respectively Contributions to pension plans (8,861) (6,073) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) 20,329 Inventories (115,331) (13,910) Accounts payable 7,860 90,434 Other assets and liabilities (205,809) 13,777 Net Cash Provided from Operating Activities 580,867 901,423 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) (179,538) Capitalized software additions (23,606) (21,949) Proceeds from sales of property, plant and equipment 312 2,201 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) (199,286) Cash Flows Provided from (Used by) Financing 2009 $435,994 182,411 34,927 (4,455) (40,578) 60,823 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (126,324) (19,146) 10,364 (15,220) (150,326) Activities Net change in short-term borrowings Long-term borrowings Repayment of long-term debt Proceeds from lease financing agreement Cash dividends paid Exercise of stock options Excess tax benefits from stock-based compensation Contributions from noncontrolling interests in subsidiaries Repurchase of Common Stock Net Cash (Used by) Financing Activities (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents as of January 1 Cash and Cash Equivalents as of December 31 Interest Paid Income Taxes Paid 10,834 249,126 (256,189) 47,601 (304,083) 184,411 13,997 (384,515) (438,818) (190,956) 884,642 $693,686 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (169,099) (71,100) 631,037 253,605 $884,642 (458,047) (8,252) (263,403) 28,318 4,455 7,322 (9,314) (698,921) 216,502 37,103 $253,605 $97,892 292,315 $97,932 350,948 $91,623 252,230 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 $53,063 $53,157 Net earnings $43,938 $53,063 $53,157 Other comprehensive earnings (loss) (8,740) 1,183 2,845 Comprehensive earnings $35,198 $54,246 $56,002 Retained earnings at beginning of year. $135,866 $147,687 $144,949 Net earnings 43,938 53,063 53,157 Cash dividends (18,360) (18,078) (17,790) Stock dividends (47,175) (46,806) (32,629) Retained earnings at end of year $114,269 $135,866 $147,687 Earnings per share $0.76 $0.90 $0.89 Average Common and Class B Common shares outstanding 57,892 58,685 59,425 (The accompanying notes are an integral part of these statements.) CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data) Assets December 31, 2011 CURRENT ASSETS: Cash and cash equivalents Investments Accounts receivable trade, less allowances of $1,731 and $1,531 Other receivables Inventories: Finished goods and work-in-process Raw materials and supplies Prepaid expenses Deferred income taxes Total current assets PROPERTY, PLANT AND EQUIPMENT, at cost: Land Buildings Machinery and equipment Construction in progress LessAccumulated depreciation Net property, plant and equipment OTHER ASSETS: Goodwill Trademarks Investments Split dollar officer life insurance Prepaid expenses Equity method investment Deferred income taxes Total other assets Total assets Liabilities and Shareholders' Equity CURRENT LIABILITIES: Accounts payable Dividends payable Accrued liabilities Total current liabilities NONCURRENT LIABILITES: Deferred income taxes Postretirement health care and life insurance benefits Industrial development bonds Liability for uncertain tax positions Deferred compensation and other liabilities Total noncurrent liabilities SHAREHOLDERS' EQUITY: Common stock, $.69-4/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued Class B common stock, $.69-4/9 par value40,000 shares authorized 21,025 and 20,466 respectively, issued Capital in excess of par value Retained earnings, per accompanying statement Accumulated other comprehensive loss Treasury stock (at cost)71 shares and 69 shares, respectively Total shareholders' equity 2010 $78,612 10,895 41,895 3,391 $115,976 7,996 37,394 9,961 42,676 29,084 5,070 578 212,201 35,416 21,236 6,499 689 235,167 21,939 107,567 322,993 2,598 455,097 242,935 212,162 21,696 102,934 307,178 9,243 440,974 225,482 215,492 73,237 175,024 96,161 74,209 3,212 3,935 7,715 433,493 $857,856 73,237 175,024 64,461 74,441 6,680 4,254 9,203 407,300 $857,959 December 31, 2011 2010 $10,683 4,603 43,069 58,355 $9,791 4,529 44,185 58,505 43,521 26,108 7,500 8,345 48,092 133,566 47,865 20,689 7,500 9,835 46,157 132,046 25,333 25,040 14,601 14,212 533,677 114,269 (19,953) (1,992) 665,935 505,495 135,866 (11,213) (1,992) 667,408 Total liabilities and shareholders' equity $857,856 $857,959 TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 19,229 18,279 17,862 Impairment charges 14,000 Impairment of equity method investment 4,400 Loss from equity method investment 194 342 233 Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and liabilities: Accounts receivable (5,448) 717 (5,899) Other receivables 3,963 (2,373) (2,088) Inventories (15,631) (1,447) 455 Prepaid expenses and other assets 5,106 4,936 5,203 Accounts payable and accrued liabilities 84 2,180 (2,755) Income taxes payable and deferred (5,772) 2,322 (12,543) Postretirement health care and life insurance benefits 2,022 1,429 1,384 Deferred compensation and other liabilities 2,146 2,525 2,960 Others (708) 310 305 Net cash provided by operating activities 50,390 82,805 76,994 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (16,351) (12,813) (20,831) Net purchase of trading securities (3,234) (2,902) (1,713) Purchase of available for sale securities (39,252) (9,301) (11,331) Sale and maturity of available for sale securities 7,680 8,208 17,511 Net cash used in investing activities (51,157) (16,808) (16,364) CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired (18,190) (22,881) (20,723) Dividends paid in cash (18,407) (18,130) (17,825) Net cash used in financing activities (36,597) (41,011) (38,548) Increase (decrease) in cash and cash equivalents (37,364) 24,986 22,082 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 115,976 $78,612 90,990 $115,976 68,908 $90,990 Supplemental cash flow information Income taxes paid $16,906 $20,586 Interest paid $38 $49 Stock dividend issued $47,053 $46,683 (The accompanying notes are an integral part of these statements.) $22,364 $182 $32,538 Based on the information contained in these financial statements, determine the following values for each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers to thousands.) (1) Profit margin for 2011. (For Tootsie Roll, use \"Total Revenue.\") Profit margin ratio Tootsie Roll % Hershey Company % (2) Gross profit for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit (000's) Tootsie Roll Hershey Company $ $ (3) Gross profit rate for 2011. (For Tootsie Roll, use \"Product\" amounts.) Gross profit rate Tootsie Roll % Hershey Company % (4) Operating income for 2011. Operating income (000's) Tootsie Roll Hershey Company $ $ (5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.) Percent change in operating income Tootsie Roll % Hershey Company % +================================================================================ QUESTION 5) Presented here are the components in Casilla Company's income statement. Determine the missing amounts. Sales Revenue Year 1 $ 72,500 Year 2 Cost of Goods Sold $ $112,100 $ Year 3 $74,480 (e) $73,790 Gross Profit (a) $ 33,310 $ (c) $112,200 Operating Expenses $ Net Income $14,180 (d) $ (b) $29,650 $49,670 QUESTION 6) Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed. July 1 1 3 5 12 18 20 21 25 31 31 Issued 16,197 shares of common stock for $16,197 cash. Purchased used truck for $12,197, paying $2,206 cash and the balance on account. Purchased cleaning supplies for $941 on account. Paid $2,400 cash on a 1-year insurance policy effective July 1. Billed customers $4,900 for cleaning services. Paid $1,293 cash on amount owed on truck and $541 on amount owed on cleaning supplies. Paid $2,249 cash for employee salaries. Collected $1,634 cash from customers billed on July 12. Billed customers $2,667 for cleaning services. Paid $365 for maintenance of the truck during month. Declared and paid $634 cash dividend. $ (f) Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous question.) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Common Stock Dividends Service Revenue Maintenance and Repairs Expense Salaries and Wages Expense SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a trial balance at July 31. CLEAN WINDOW WASHING INC. Trial Balance July 31, 2014 Debit Credit $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT $ $ Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (1) (2) (3) (4) (5) Services performed but unbilled and uncollected at July 31 were $1,866. Depreciation on equipment for the month was $211. One-twelfth of the insurance expired. An inventory count shows $320 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $424. No Account Titles and . Explanation 1. 2. 3. 4. 5. SHOW LIST OF ACCOUNTS LINK TO TEXT Debit Credit Post adjusting entries to the T-accounts. Cash 7/1 7/21 16,197 7/1 2,206 1,634 7/5 2,400 7/18 7/20 2,249 7/31 365 7/31 7/31 Bal. 1,834 634 8,143 Accounts Receivable 7/12 4,900 7/21 7/25 2,667 Supplies 7/3 941 Prepaid Insurance 7/5 2,400 Equipment 7/1 12,197 7/31 Bal. 12,197 Accumulated Depreciation-Equipment Accounts Payable 1,634 7/18 1,834 7/1 9,991 7/3 941 7/31 Bal. 9,098 Salaries and Wages Payable Common Stock 7/1 16,197 7/31 Bal. 16,197 Dividends 7/31 634 7/31 Bal. 634 Service Revenue 7/12 4,900 7/25 2,667 Maintenance and Repairs Expense 7/31 365 7/31 Bal. 365 Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense 7/20 2,249 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare an adjusted trial balance. CLEAN WINDOW WASHING INC. Trial Balance July 31, 2014 Debit Credit $ $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the income statement for July. CLEAN WINDOW WASHING INC. Income Statement For the Month Ended July 31, 2014 $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a retained earnings statement for July. (List items that increase retained earnings first.) CLEAN WINDOW WASHING INC. Retained Earnings Statement For the Month Ended July 31, 2014 $ : : $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.) CLEAN WINDOW WASHING INC. Balance Sheet July 31, 2014 Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Journalize closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation (To close revenue account) (To close expense accounts) Debit Credit (To close net income / (loss)) (To close dividends) SHOW LIST OF ACCOUNTS LINK TO TEXT Post closing entries and complete the closing process. Cash 7/1 7/21 16,197 7/1 2,206 1,634 7/5 2,400 7/18 7/20 2,249 7/31 365 7/31 7/31 Bal. 1,834 634 8,143 Accounts Receivable 7/12 4,900 7/21 7/25 2,667 7/31 1,866 7/31 Bal. 1,634 7,799 Supplies 7/3 941 7/31 7/31 Bal. 621 320 Prepaid Insurance 7/5 2,400 7/31 7/31 Bal. 2,200 Equipment 200 7/1 7/31 Bal. 12,197 12,197 Accumulated Depreciation-Equipment 7/31 211 7/31 Bal. 211 Accounts Payable 7/18 1,834 7/1 9,991 7/3 941 7/31 Bal. 9,098 Salaries and Wages Payable 7/31 424 7/31 Bal. 424 Common Stock 7/1 16,197 7/31 Bal. 16,197 Retained Earnings Dividends 7/31 634 Income Summary Service Revenue 7/12 4,900 7/25 2,667 7/31 Maintenance and Repairs Expense 7/31 365 Supplies Expense 7/31 621 Depreciation Expense 7/31 211 Insurance Expense 7/31 200 Salaries and Wages Expense 7/20 2,249 7/31 424 SHOW LIST OF ACCOUNTS LINK TO TEXT 1,866 Prepare a post-closing trial balance at July 31. CLEAN WINDOW WASHING INC. Post-Closing Trial Balance July 31, 2014 Debit Credit $ $ SHOW LIST OF ACCOUNTS $ $