Please take a look at the attached document and please answer the following accounting question.Thank you.This is going for three points.

Foyle Architects incorporated as licensed architects on April 1, 2014. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders invested $22,716 cash in exchange for common stock of the corporation. Account Titles and Date Debit Credit 1 Hired a secretary-receptionist at a salary of $473 per week, payable monthly. Explanation 2 Paid office rent for the month $1,136. 3 Purchased architectural supplies on account from Burlington Company $1,641. 10 Completed blueprints on a carport and billed client $2,398 for services. 11 Received $883 cash advance from J. Madison to design a new home. 20 Received $3,534 cash for services completed and delivered to M. Svetlana. 30 Paid secretary-receptionist for the month $1,892. 30 Paid $379 to Burlington Company for accounts payable due. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.) Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a trial balance on April 30, 2014. FOYLE ARCHITECTS INC. Trial Balance April 30, 2014 Debit Credit $ $ $ $ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 2) This is the trial balance of Solis Company on September 30. SOLIS COMPANY Trial Balance September 30, 2014 Debit Cash Credit $ 23,450 Accounts Receivable 6,850 Supplies 5,000 Equipment 10,900 Accounts Payable $ 9,050 Unearned Service Revenue 4,000 Common Stock 19,250 Retained Earnings 13,900 $46,200 $46,200 The October transactions were as follows. Oct. 5 10 15 17 20 29 31 Received $1,380 in cash from customers for accounts receivable due. Billed customers for services performed $5,420. Paid employee salaries $1,000. Performed $620 of services in exchange for cash. Paid $1,810 to creditors for accounts payable due. Paid a $330 cash dividend. Paid utilities $400. Prepare a general ledger using T-accounts. Enter the opening balances in the ledger accounts as of October 1. Cash Accounts Receivable Supplies Equipment Accounts Payable Date Unearned Service Revenue Account Titles and Debit Credit Explanation Common Stock Retained Earnings Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Post to the ledger accounts. (Post entries in the order of information presented in the question.) Cash 10/1 Bal. 23,450 Accounts Receivable 10/1 Bal. 6,850 Supplies 10/1 Bal. 5,000 Equipment 10/1 Bal. 10,900 Accounts Payable 10/1 Bal. 9,050 Unearned Service Revenue 10/1 Bal. 4,000 Bal. 19,250 Common Stock 10/1 Retained Earnings 10/1 Dividends Service Revenue Salaries and Wages Expense Utilities Expense SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO 13,900 Prepare a trial balance on October 31, 2014. SOLIS COMPANY Trial Balance October 31, 2014 Debit Credit $ $ $ $ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 3) A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. Liabilitie + s Account Supp Equip Commo Cash + A/R + + = s + + . . n Stock Payable Assets = Stockholders' Equity Retained Earnings Revenue Expense Dividend - - s s s (1) $15,52 0 (2) -1,800 (3) -890 (4) 3,170 (5) (6) 510 (9) $3,200 $890 $6,34 0 -880 (8) $5,00 0 -1,960 -1,130 (7) Com. Stock $15,520 -3,940 Serv. Rev. $9,510 -1,960 -$880 -$1,130Div. Rent Exp. -510 -3,940 (10 ) 250 -250 Salar . Exp. Util. Exp. Determine how much stockholders' equity increased for the month. Increase in stockholders' equity $ Compute the net income for the month. The net income $ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 4) The financial statements of The Hershey Company and Tootsie Roll are presented below. Assume Hershey's average number of shares outstanding was 220,688,000, and Tootsie Roll's was 57,892,000. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, 2011 In thousands of dollars except per share amounts 2010 2009 Net Sales Costs and Expenses: Cost of sales Selling, marketing and administrative Business realignment and impairment (credits) charges, net Total costs and expenses Income before Interest and Income Taxes Interest expense, net Income before Income Taxes Provision for income taxes Net Income Net Income Per ShareBasicClass B Common Stock Net Income Per ShareDilutedClass B Common Stock Net Income Per ShareBasicCommon Stock Net Income Per ShareDilutedCommon Stock $6,080,788 $5,671,009 $5,298,668 3,548,896 1,477,750 3,255,801 1,426,477 3,245,531 1,208,672 83,433 82,875 5,025,760 1,055,028 92,183 962,845 333,883 $628,962 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 $2.58 $2.08 $1.77 $2.56 $2.07 $1.77 $2.85 $2.29 $1.97 $2.74 $2.21 $1.90 (886) 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 Total current liabilities Long-term Debt Other Long-term Liabilities Total liabilities Commitments and Contingencies Stockholders' Equity: 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 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 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 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 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 Stock-based compensation expense, net of tax of $15,127, 28,341 $17,413 and $19,223, respectively Excess tax benefits from stock-based compensation (13,997) Deferred income taxes 33,611 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 $18,333, $20,635 and $38,308, respectively Contributions to pension plans (8,861) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) Inventories (115,331) Accounts payable 7,860 Other assets and liabilities (205,809) Net Cash Provided from Operating Activities 580,867 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) Capitalized software additions (23,606) Proceeds from sales of property, plant and equipment 312 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) Cash Flows Provided from (Used by) Financing Activities Net change in short-term borrowings 10,834 Long-term borrowings 249,126 Repayment of long-term debt (256,189) Proceeds from lease financing agreement 47,601 Cash dividends paid (304,083) 2010 2009 $509,799 $435,994 197,116 182,411 32,055 34,927 (1,385) (18,654) (4,455) (40,578) 77,935 60,823 (6,073) 20,329 (13,910) 90,434 13,777 901,423 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 1,156 348,208 (71,548) (283,434) (458,047) (8,252) (263,403) 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 184,411 13,997 (384,515) (438,818) (190,956) 884,642 $693,686 92,033 1,385 10,199 (169,099) (71,100) 631,037 253,605 $884,642 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 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 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 Total liabilities and shareholders' equity 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 $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 $43,938 $53,063 $53,157 19,229 194 1,267 18,279 342 522 17,862 14,000 4,400 233 320 (5,448) 3,963 (15,631) 5,106 84 (5,772) 2,022 2,146 (708) 50,390 717 (2,373) (1,447) 4,936 2,180 2,322 1,429 2,525 310 82,805 (5,899) (2,088) 455 5,203 (2,755) (12,543) 1,384 2,960 305 76,994 (16,351) (3,234) (39,252) 7,680 (51,157) (12,813) (2,902) (9,301) 8,208 (16,808) (20,831) (1,713) (11,331) 17,511 (16,364) (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 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation Impairment charges Impairment of equity method investment Loss from equity method investment Amortization of marketable security premiums Changes in operating assets and liabilities: Accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilities Income taxes payable and deferred Postretirement health care and life insurance benefits Deferred compensation and other liabilities Others Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Net purchase of trading securities Purchase of available for sale securities Sale and maturity of available for sale securities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired Dividends paid in cash Net cash used in financing activities For each company calculate the following values for 2011. (Hint: When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.) (Round all ratios to 1 decimal places, e.g. 15.2:1 or 15.2%, earnings per share to 2 decimal places, e.g. 15.21 and all other answers to thousands. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Working capital. Working capital Hershey Company $ $ Tootsie Roll (2) Current ratio. Current ratio :1 Hershey Company :1 Tootsie Roll (3) Debt to assets ratio. Debt to assets ratio Hershey Company % Tootsie Roll % (4) Free cash flow. Free cash flow Hershey Company Tootsie Roll $ $ (5) Earnings per share. Earnings per share Hershey Company Tootsie Roll $ $ QUESTION 5) 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 2010 2009 Net Sales Costs and Expenses: Cost of sales Selling, marketing and administrative Business realignment and impairment (credits) charges, net Total costs and expenses Income before Interest and Income Taxes Interest expense, net Income before Income Taxes Provision for income taxes Net Income Net Income Per ShareBasicClass B Common Stock Net Income Per ShareDilutedClass B Common Stock Net Income Per ShareBasicCommon Stock Net Income Per ShareDilutedCommon Stock $6,080,788 $5,671,009 $5,298,668 3,548,896 1,477,750 3,255,801 1,426,477 3,245,531 1,208,672 83,433 82,875 5,025,760 1,055,028 92,183 962,845 333,883 $628,962 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 $2.58 $2.08 $1.77 $2.56 $2.07 $1.77 $2.85 $2.29 $1.97 $2.74 $2.21 $1.90 (886) 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 Total current liabilities Long-term Debt Other Long-term Liabilities Total liabilities Commitments and Contingencies Stockholders' Equity: 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 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 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 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 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 Stock-based compensation expense, net of tax of $15,127, 28,341 $17,413 and $19,223, respectively Excess tax benefits from stock-based compensation (13,997) Deferred income taxes 33,611 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 $18,333, $20,635 and $38,308, respectively Contributions to pension plans (8,861) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) Inventories (115,331) Accounts payable 7,860 Other assets and liabilities (205,809) Net Cash Provided from Operating Activities 580,867 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) Capitalized software additions (23,606) Proceeds from sales of property, plant and equipment 312 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) Cash Flows Provided from (Used by) Financing Activities Net change in short-term borrowings 10,834 Long-term borrowings 249,126 Repayment of long-term debt (256,189) Proceeds from lease financing agreement 47,601 Cash dividends paid (304,083) 2010 2009 $509,799 $435,994 197,116 182,411 32,055 34,927 (1,385) (18,654) (4,455) (40,578) 77,935 60,823 (6,073) 20,329 (13,910) 90,434 13,777 901,423 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 1,156 348,208 (71,548) (283,434) (458,047) (8,252) (263,403) 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 184,411 13,997 (384,515) (438,818) (190,956) 884,642 $693,686 92,033 1,385 10,199 (169,099) (71,100) 631,037 253,605 $884,642 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 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 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 Total liabilities and shareholders' equity 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 $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 $43,938 $53,063 $53,157 19,229 194 1,267 18,279 342 522 17,862 14,000 4,400 233 320 (5,448) 3,963 (15,631) 5,106 84 (5,772) 2,022 2,146 (708) 50,390 717 (2,373) (1,447) 4,936 2,180 2,322 1,429 2,525 310 82,805 (5,899) (2,088) 455 5,203 (2,755) (12,543) 1,384 2,960 305 76,994 (16,351) (3,234) (39,252) 7,680 (51,157) (12,813) (2,902) (9,301) 8,208 (16,808) (20,831) (1,713) (11,331) 17,511 (16,364) (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 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation Impairment charges Impairment of equity method investment Loss from equity method investment Amortization of marketable security premiums Changes in operating assets and liabilities: Accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilities Income taxes payable and deferred Postretirement health care and life insurance benefits Deferred compensation and other liabilities Others Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Net purchase of trading securities Purchase of available for sale securities Sale and maturity of available for sale securities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired Dividends paid in cash Net cash used in financing activities Based on the information contained in these financial statements, determine the normal balance for: Tootsie Roll Industries (1) Accounts Receivable (2) Net Property, Plant, and Equipment Normal Balance The Hershey Company (1) Inventories (2) Provision for Income Taxes (3) Accounts Payable (3) Accrued Liabilities (4) Retained Earnings (4) Common Stock (5) Net Product Sales (5) Interest Expense Normal Balance +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 6) IFRS 2-6 The following information is available for Cole Bowling Alley at December 31, 2014. Buildings Accounts Receivable Prepaid Insurance Cash Equipment Land $128,800 14,520 4,680 18,040 62,400 64,000 Insurance Expense Depreciation Expense Interest Expense 780 7,360 Share CapitalOrdinary Retained Earnings Accumulated DepreciationBuildings Accounts Payable Notes Payable Accumulated Depreciation Equipment Interest Payable Service Revenue $100,000 15,000 42,600 12,300 97,780 18,720 2,600 14,180 2,600 Prepare a classified statement of financial position; assume that $13,900 of the notes payable will be paid in 2015. (List Property, plant and equipment in order of land, buildings and equipment. List current assets in reverse order of liquidity.) COLE BOWLING ALLEY Statement of Financial Position December 31, 2014 Assets $ $ : : $ $ Equity and Liabilities $ $ $ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ + QUESTION 8) The Zetar plc's complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Describe in which statement each of the following items is reported, and the position in the statement (e.g., current asset). Account a Share Financial Statement Position in Financial Statement capital b Goodwill ) Borrowings c) and overdrafts Amortizatio d n of ) intangible assets Derivative e) financial asset +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Foyle Architects incorporated as licensed architects on April 1, 2014. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders invested $22,716 cash in exchange for common stock of the corporation. Account Titles and Date Debit Credit 1 Hired a secretary-receptionist at a salary of $473 per week, payable monthly. Explanation 2 Paid office rent for the month $1,136. 3 Purchased architectural supplies on account from Burlington Company $1,641. 10 Completed blueprints on a carport and billed client $2,398 for services. 11 Received $883 cash advance from J. Madison to design a new home. 20 Received $3,534 cash for services completed and delivered to M. Svetlana. 30 Paid secretary-receptionist for the month $1,892. 30 Paid $379 to Burlington Company for accounts payable due. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.) Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a trial balance on April 30, 2014. FOYLE ARCHITECTS INC. Trial Balance April 30, 2014 Debit Credit $ $ $ $ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 2) This is the trial balance of Solis Company on September 30. SOLIS COMPANY Trial Balance September 30, 2014 Debit Cash Credit $ 23,450 Accounts Receivable 6,850 Supplies 5,000 Equipment 10,900 Accounts Payable $ 9,050 Unearned Service Revenue 4,000 Common Stock 19,250 Retained Earnings 13,900 $46,200 $46,200 The October transactions were as follows. Oct. 5 10 15 17 20 29 31 Received $1,380 in cash from customers for accounts receivable due. Billed customers for services performed $5,420. Paid employee salaries $1,000. Performed $620 of services in exchange for cash. Paid $1,810 to creditors for accounts payable due. Paid a $330 cash dividend. Paid utilities $400. Prepare a general ledger using T-accounts. Enter the opening balances in the ledger accounts as of October 1. Cash Accounts Receivable Supplies Equipment Accounts Payable Date Unearned Service Revenue Account Titles and Debit Credit Explanation Common Stock Retained Earnings Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Prepare a trial balance on October 31, 2014. SOLIS COMPANY Trial Balance October 31, 2014 Debit Credit $ $ $ $ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 3) A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. Liabilitie + s Account Supp Equip Commo Cash + A/R + + = s + + . . n Stock Payable Assets = Stockholders' Equity Retained Earnings Revenue Expense Dividend - - s s s (1) $15,52 0 (2) -1,800 (3) -890 (4) 3,170 (5) (6) 510 (9) $3,200 $890 $6,34 0 -880 (8) $5,00 0 -1,960 -1,130 (7) Com. Stock $15,520 -3,940 Serv. Rev. $9,510 -1,960 -$880 -$1,130Div. Rent Exp. -510 -3,940 (10 ) 250 -250 Salar . Exp. Util. Exp. Determine how much stockholders' equity increased for the month. Increase in stockholders' equity $ Compute the net income for the month. The net income $ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 4) The financial statements of The Hershey Company and Tootsie Roll are presented below. Assume Hershey's average number of shares outstanding was 220,688,000, and Tootsie Roll's was 57,892,000. 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 2010 2009 $5,671,009 $5,298,668 3,255,801 3,245,531 Selling, marketing and administrative Business realignment and impairment (credits) charges, net Total costs and expenses Income before Interest and Income Taxes Interest expense, net Income before Income Taxes Provision for income taxes Net Income Net Income Per ShareBasicClass B Common Stock Net Income Per ShareDilutedClass B Common Stock Net Income Per ShareBasicCommon Stock Net Income Per ShareDilutedCommon Stock 1,477,750 1,426,477 1,208,672 83,433 82,875 5,025,760 1,055,028 92,183 962,845 333,883 $628,962 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 $2.58 $2.08 $1.77 $2.56 $2.07 $1.77 $2.85 $2.29 $1.97 $2.74 $2.21 $1.90 (886) 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 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 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 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 3,335,131 299,269 299,195 299,195,325 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 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 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 Stock-based compensation expense, net of tax of $15,127, 28,341 $17,413 and $19,223, respectively Excess tax benefits from stock-based compensation (13,997) Deferred income taxes 33,611 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 $18,333, $20,635 and $38,308, respectively Contributions to pension plans (8,861) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) Inventories (115,331) Accounts payable 7,860 Other assets and liabilities (205,809) Net Cash Provided from Operating Activities 580,867 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) Capitalized software additions (23,606) Proceeds from sales of property, plant and equipment 312 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) Cash Flows Provided from (Used by) Financing Activities Net change in short-term borrowings 10,834 Long-term borrowings 249,126 Repayment of long-term debt (256,189) Proceeds from lease financing agreement 47,601 Cash dividends paid (304,083) Exercise of stock options 184,411 Excess tax benefits from stock-based compensation 13,997 Contributions from noncontrolling interests in subsidiaries 2010 2009 $509,799 $435,994 197,116 182,411 32,055 34,927 (1,385) (18,654) (4,455) (40,578) 77,935 60,823 (6,073) 20,329 (13,910) 90,434 13,777 901,423 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (458,047) (8,252) (263,403) 28,318 4,455 7,322 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 (384,515) (438,818) (190,956) 884,642 $693,686 (169,099) (71,100) 631,037 253,605 $884,642 (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 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 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 Total liabilities and shareholders' equity 5,070 578 212,201 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 $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 Impairment charges Impairment of equity method investment Loss from equity method investment Amortization of marketable security premiums Changes in operating assets and liabilities: Accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilities Income taxes payable and deferred Postretirement health care and life insurance benefits Deferred compensation and other liabilities Others Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Net purchase of trading securities Purchase of available for sale securities Sale and maturity of available for sale securities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired Dividends paid in cash Net cash used in financing activities 19,229 194 1,267 18,279 342 522 17,862 14,000 4,400 233 320 (5,448) 3,963 (15,631) 5,106 84 (5,772) 2,022 2,146 (708) 50,390 717 (2,373) (1,447) 4,936 2,180 2,322 1,429 2,525 310 82,805 (5,899) (2,088) 455 5,203 (2,755) (12,543) 1,384 2,960 305 76,994 (16,351) (3,234) (39,252) 7,680 (51,157) (12,813) (2,902) (9,301) 8,208 (16,808) (20,831) (1,713) (11,331) 17,511 (16,364) (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 For each company calculate the following values for 2011. (Hint: When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.) (Round all ratios to 1 decimal places, e.g. 15.2:1 or 15.2%, earnings per share to 2 decimal places, e.g. 15.21 and all other answers to thousands. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Working capital. Working capital Hershey Company Tootsie Roll (2) Current ratio. $ $ Current ratio :1 Hershey Company :1 Tootsie Roll (3) Debt to assets ratio. Debt to assets ratio Hershey Company % Tootsie Roll % (4) Free cash flow. Free cash flow Hershey Company Tootsie Roll $ $ (5) Earnings per share. Earnings per share Hershey Company Tootsie Roll $ $ ================================================================= QUESTION 5) 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) 2010 2009 $5,671,009 $5,298,668 3,255,801 1,426,477 83,433 3,245,531 1,208,672 82,875 net Total costs and expenses Income before Interest and Income Taxes Interest expense, net Income before Income Taxes Provision for income taxes Net Income Net Income Per ShareBasicClass B Common Stock Net Income Per ShareDilutedClass B Common Stock Net Income Per ShareBasicCommon Stock Net Income Per ShareDilutedCommon Stock 5,025,760 1,055,028 92,183 962,845 333,883 $628,962 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 $2.58 $2.08 $1.77 $2.56 $2.07 $1.77 $2.85 $2.29 $1.97 $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, 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 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 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 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 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 In thousands of dollars Cash Flows Provided from (Used by) Operating Activities Net income $628,962 Adjustments to reconcile net income to net cash provided from operations: Depreciation and amortization 215,763 Stock-based compensation expense, net of tax of $15,127, 28,341 $17,413 and $19,223, respectively Excess tax benefits from stock-based compensation (13,997) Deferred income taxes 33,611 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 $18,333, $20,635 and $38,308, respectively Contributions to pension plans (8,861) Changes in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivabletrade (9,438) Inventories (115,331) Accounts payable 7,860 Other assets and liabilities (205,809) Net Cash Provided from Operating Activities 580,867 Cash Flows Provided from (Used by) Investing Activities Capital additions (323,961) Capitalized software additions (23,606) Proceeds from sales of property, plant and equipment 312 Proceeds from sales of trademark licensing rights 20,000 Business acquisitions (5,750) Net Cash (Used by) Investing Activities (333,005) Cash Flows Provided from (Used by) Financing Activities Net change in short-term borrowings 10,834 Long-term borrowings 249,126 Repayment of long-term debt (256,189) Proceeds from lease financing agreement 47,601 Cash dividends paid (304,083) Exercise of stock options 184,411 Excess tax benefits from stock-based compensation 13,997 Contributions from noncontrolling interests in subsidiaries Repurchase of Common Stock (384,515) Net Cash (Used by) Financing Activities (438,818) 2010 2009 $509,799 $435,994 197,116 182,411 32,055 34,927 (1,385) (18,654) (4,455) (40,578) 77,935 60,823 (6,073) 20,329 (13,910) 90,434 13,777 901,423 (54,457) 46,584 74,000 37,228 293,272 1,065,749 (179,538) (21,949) 2,201 (199,286) (126,324) (19,146) 10,364 (15,220) (150,326) 1,156 348,208 (71,548) (283,434) 92,033 1,385 10,199 (169,099) (71,100) (458,047) (8,252) (263,403) 28,318 4,455 7,322 (9,314) (698,921) (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 (190,956) 884,642 $693,686 $97,892 292,315 631,037 253,605 $884,642 216,502 37,103 $253,605 $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 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 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 Total liabilities and shareholders' equity 212,201 235,167 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 $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 Impairment charges Impairment of equity method investment Loss from equity method investment Amortization of marketable security premiums Changes in operating assets and liabilities: Accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilities Income taxes payable and deferred Postretirement health care and life insurance benefits Deferred compensation and other liabilities Others Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Net purchase of trading securities Purchase of available for sale securities Sale and maturity of available for sale securities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Shares repurchased and retired Dividends paid in cash Net cash used in financing activities 19,229 194 1,267 18,279 342 522 17,862 14,000 4,400 233 320 (5,448) 3,963 (15,631) 5,106 84 (5,772) 2,022 2,146 (708) 50,390 717 (2,373) (1,447) 4,936 2,180 2,322 1,429 2,525 310 82,805 (5,899) (2,088) 455 5,203 (2,755) (12,543) 1,384 2,960 305 76,994 (16,351) (3,234) (39,252) 7,680 (51,157) (12,813) (2,902) (9,301) 8,208 (16,808) (20,831) (1,713) (11,331) 17,511 (16,364) (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 normal balance for: Tootsie Roll Industries (1) Accounts Receivable (2) Net Property, Plant, and Equipment Normal Balance The Hershey Company Normal Balance (1) Inventories (2) Provision for Income Taxes (3) Accounts Payable (3) Accrued Liabilities (4) Retained Earnings (4) Common Stock (5) Net Product Sales (5) Interest Expense +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ QUESTION 6) IFRS 2-6 The following information is available for Cole Bowling Alley at December 31, 2014. Buildings Accounts Receivable Prepaid Insurance Cash Equipment Land $128,800 14,520 4,680 18,040 62,400 64,000 Insurance Expense Depreciation Expense Interest Expense 780 7,360 Share CapitalOrdinary Retained Earnings Accumulated DepreciationBuildings Accounts Payable Notes Payable Accumulated Depreciation Equipment Interest Payable Service Revenue $100,000 15,000 42,600 12,300 97,780 18,720 2,600 14,180 2,600 Prepare a classified statement of financial position; assume that $13,900 of the notes payable will be paid in 2015. (List Property, plant and equipment in order of land, buildings and equipment. List current assets in reverse order of liquidity.) COLE BOWLING ALLEY Statement of Financial Position December 31, 2014 Assets $ $ : : $ $ Equity and Liabilities $ $ $