Please see Question 53

12-53 Solvency Ratios Exhibit 12-17 contains the income statements and balance sheets of The Hershey Company for the years ended December 31, 2011, and December 31, 2010. Hershey manufactures and sells OBJECTIVES 3, 4 products under more than 80 brand names. 1. Compute the following ratios for 2011: (a) total-debt-to-total-assets, and (b) total-debt-to- total-equity. To be consistent with the source of industry data used in the problem, define total debt as short-term debt and long-term debt (including the current portion) only. This defini- tion is not the one we have used in the text, so it is worth emphasizing that it does not include items such as accounts payable and accrued liabilities; only the items specified. 2. Assess Hershey's solvency compared with the following industry averages for the food processing industry as provided by Reuters and with ratios computed for Tootsie Roll, a competitor in the candy manufacturing, marketing, sales, and distribution industry. See a description of the food processing industry in problem 12-52. Tootsie Roll (year ended Reuters Averages (as of August 31, 2012)December 31, 2011) Total-debt-to-total-assets Total-debt-to-total-shareholders' equity Tootsie Roll has no 12-54 Profitability Ratios Total-debt to-tota-shareholders' equity Not available 46.05% 0.0%* 0.0%" debt in its capital structure! In fact, total liabilities are only 22.4% of total assets. ECTIVES 3, 4 Exhibit 12-17 contains income statements and balance sheets of The Hershey Company. For more than 100 years, The Hershey Company has enjoyed a position as one of North America e of North America's hey largest manufacturers of quality chocolate and confectionery products. Today, The Hers Company and its subsidiaries export to approximately 70 countries worldwide