QUESTION 1

Exercise 11-24

The 2014 Annual Report ofTootsie Roll Industriescontains the following information.

(in millions) December 31, 2014 December 31, 2013

Total assets $910.4 $888.4

Total liabilities 219.3 208.1

Net sales 539.9 539.6

Net income 63.2 60.8

Compute the following ratios for Tootsie Roll for 2014.

(a)Asset turnover(Round answer to 4 decimal places, e.g. 0.8512 times.) ___________ times

(b)Return on assets(Round answer to 2 decimal places, e.g. 4.87%.) _____________%

(c)Profit margin on sales(Round answer to 3 decimal places, e.g. 4.872%.)___________%

QUESTION 2

Exercise 11-6

Pina Company purchased equipment for $250,800on October 1, 2017. It is estimated that the equipment will have a useful life of8years and a salvage value of $14,400. Estimated production is39,400units and estimated working hours are19,900. During 2017, Pina uses the equipment for530hours and the equipment produces1,100units.

Compute depreciation expense under each of the following methods. Pina is on a calendar-year basis ending December 31.(Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)

(a)Straight-line method for 2017 $______

(b)Activity method (units of output) for 2017 $______

(c)Activity method (working hours) for 2017 $______

(d)Sum-of-the-years'-digits method for 2019 $______

(e)Double-declining-balance method for 2018 $_____