The financial statements of Tootsie Roll are presented below 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 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 $10,683 $9,791 Dividends payable 4,603 4,529 Accrued liabilities 43,069 44,185 Total current liabilities 58,355 58,505 NONCURRENT LIABILITES Deferred income taxes 43,521 47,865 Postretirement health care and life insurance benefits 26,108 20,689 Industrial development bonds 7,500 7,500 Liability for uncertain tax positions 8,345 9,835 Deferred compensation and other liabilities 48,092 46,157 Total noncurrent liabilities 133,566 132,046 SHAREHOLDERS EQUITY Common stock, $ 69 4 9 par value120,000 shares authorized36,479 and 36,057 respectively, issued 25,333 25,040 Class B common stock, $ 69 4 9 par value40,000 shares authorized21,025 and 20,466 respectively, issued 14,601 14,212 Capital in excess of par value 533,677 505,495 Retained earnings, per accompanying statement 114,269 135,866 Accumulated other comprehensive loss (19,953 ) (11,213 ) Treasury stock (at cost)71 shares and 69 shares, respectively (1,992 ) (1,992 ) Total shareholders equity 665,935 667,408 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 115,976 90,990 68,908 Cash and cash equivalents at end of year $78,612 $115,976 $90,990 Supplemental cash flow information Income taxes paid $16,906 $20,586 $22,364 Interest paid $38 $49 $182 Stock dividend issued $47,053 $46,683 $32,538 (The accompanying notes are an integral part of these statements ) Five Year Summary of Earning and Financial Hightlights TOOTISE ROLL INDUSTRY, INC AND SUBSIDIARIES (Thousands of dollars except per share, percentage and ratio figures) 2011 2010 2009 2008 2007 Sales and Earnings Data Net product sales $528,369 $517,149 $495,592 $492,051 $492,742 Product gross margin 163,144 167,815 175,817 158,055 165,456 Interest expenses 121 142 243 378 535 Provision for income taxes 16,974 20,005 9,892 16,347 25,401 Net earnings 43,938 53,063 53,157 38,880 52,175 of net product sales 8 3 10 3 10 7 7 9 10 6 of shareholders' equity 6 6 8 0 8 1 6 1 8 1 Per Common Share Data Net earnings $0 76 $0 90 $0 89 $0 65 $0 85 Cash dvidends declared 0 32 0 32 0 32 0 32 0 32 Stock dividends 3 3 3 3 3 Additional Financial Data Working capital $153,846 $176,662 $154,409 $129,694 $142,163 Net cash provided by opreating activities 50,390 82,805 76,994 57,333 90,148 Net cash provided by (used by) investing activities (51,157 ) (16,808 ) (16,364 ) (7,565 ) (43,429 ) Net cash used in financing activities (36,597 ) (41,011 ) (38,548 ) (38,666 ) (44,842 ) Property, plant equipment additions 16,351 12,813 20,831 34,355 14,767 Net property, plant equipment 212,162 215,492 220,721 217,628 201,401 Total assets 857,856 857,959 836,844 813,252 813,134 Long term debt 7,500 7,500 7,500 7,500 7,500 Shareholders' equity 665,935 667,408 654,244 636,847 640,204 Average shares outstanding 57,892 58,685 59,425 60,152 61,580 Notes to Consolidated Financial Statements ($ in thousands) Revenue recognition Products are sold to customers based on accepted purchase orders which include quantity, sales price and other relevant terms of sale Revenue, net of applicable provisions for discounts, returns, allowances and certain advertising and promotional costs, is recognized when products are delivered to customers and collectability is reasonably assured Shipping and handling costs of $45,850, $43,034, and $38,628 in 2011, 2010 and 2009, respectively, are included in selling, marketing and administrative expenses Accounts receivable are unsecured Revenues from a major customer aggregated approximately 23 3 , 21 4 and 22 9 of net product sales during the years ended December 31, 2011, 2010 and 2009, respectively SEGMENT AND GEOGRAPHIC INFORMATION The Company operates as a single reportable segments encompassing the manufacturing and sale of confectionery products Its principal manufacturing operations are located in the United States and Canada, and its principal market is in the United States The Company also manufactures and sells confectionery products in Mexico, and exports products to Canada and countries worldwide The following geographic data includes net product sales summarized on the basis of the customer location and long lived assets based on their location 2011 2010 2009 Net product sales United states $487,185 $471,714 $455,517 Foreign 41,184 45,435 40,075 $528,369 $517,149 $495,592 Long lived assets United states $170,173 $172,087 $176,044 Foreign 41,989 43,405 44,677 $212,162 $215,492 $220,721 Calculate the accounts receivable turnover and average collection period for 2011 (Use Net Product Sales Assume all sales were credit sales ) (Round answers to 1 decimal place, e g 15 2 ) Accounts receivable turnover 14 times Average collection period 26 1 days Warning Don't show me this message again for the assignment Ok Cancel Question Attempts 1 of 3 used Save for later Submit Answer

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The financial statements of Tootsie Roll are presented below. TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Earnings, Comprehensive Earnings and Retained Earnings (in

The financial statements of Tootsie Roll are presented below.

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		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		$10,683			$9,791
	Dividends payable		4,603			4,529
	Accrued liabilities		43,069			44,185
	Total current liabilities		58,355			58,505
NONCURRENT LIABILITES:
	Deferred income taxes		43,521			47,865
	Postretirement health care and life insurance benefits		26,108			20,689
	Industrial development bonds		7,500			7,500
	Liability for uncertain tax positions		8,345			9,835
	Deferred compensation and other liabilities		48,092			46,157
	Total noncurrent liabilities		133,566			132,046
SHAREHOLDERS EQUITY:
	Common stock, $.69-4/9 par value120,000 shares authorized36,479 and 36,057 respectively, issued		25,333			25,040
	Class B common stock, $.69-4/9 par value40,000 shares authorized21,025 and 20,466 respectively, issued		14,601			14,212
	Capital in excess of par value		533,677			505,495
	Retained earnings, per accompanying statement		114,269			135,866
	Accumulated other comprehensive loss		(19,953	)		(11,213	)
	Treasury stock (at cost)71 shares and 69 shares, respectively		(1,992	)		(1,992	)
	Total shareholders equity		665,935			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		115,976			90,990			68,908
	Cash and cash equivalents at end of year		$78,612			$115,976			$90,990
	Supplemental cash flow information
			Income taxes paid		$16,906			$20,586			$22,364
			Interest paid		$38			$49			$182
			Stock dividend issued		$47,053			$46,683			$32,538
(The accompanying notes are an integral part of these statements.)

Five Year Summary of Earning and Financial Hightlights TOOTISE ROLL. INDUSTRY, INC. AND SUBSIDIARIES (Thousands of dollars except per share, percentage and ratio figures)
				2011		2010		2009		2008		2007
	Sales and Earnings Data
		Net product sales	$528,369			$517,149			$495,592			$492,051			$492,742
		Product gross margin	163,144			167,815			175,817			158,055			165,456
		Interest expenses	121			142			243			378			535
		Provision for income taxes	16,974			20,005			9,892			16,347			25,401
		Net earnings	43,938			53,063			53,157			38,880			52,175
		% of net product sales	8.3	%		10.3	%		10.7	%		7.9	%		10.6	%
		% of shareholders' equity	6.6	%		8.0	%		8.1	%		6.1	%		8.1	%

	Per Common Share Data
		Net earnings		$0.76			$0.90			$0.89			$0.65			$0.85
		Cash dvidends declared		0.32			0.32			0.32			0.32			0.32
		Stock dividends		3	%		3	%		3	%		3	%		3	%

	Additional Financial Data
		Working capital		$153,846			$176,662			$154,409			$129,694			$142,163
		Net cash provided by opreating activities		50,390			82,805			76,994			57,333			90,148
		Net cash provided by (used by) investing activities		(51,157	)		(16,808	)		(16,364	)		(7,565	)		(43,429	)
		Net cash used in financing activities		(36,597	)		(41,011	)		(38,548	)		(38,666	)		(44,842	)
		Property, plant & equipment additions		16,351			12,813			20,831			34,355			14,767
		Net property, plant & equipment		212,162			215,492			220,721			217,628			201,401
		Total assets		857,856			857,959			836,844			813,252			813,134
		Long-term debt		7,500			7,500			7,500			7,500			7,500
		Shareholders' equity		665,935			667,408			654,244			636,847			640,204
		Average shares outstanding		57,892			58,685			59,425			60,152			61,580

Notes to Consolidated Financial Statements ($ in thousands) Revenue recognition: Products are sold to customers based on accepted purchase orders which include quantity, sales price and other relevant terms of sale. Revenue, net of applicable provisions for discounts, returns, allowances and certain advertising and promotional costs, is recognized when products are delivered to customers and collectability is reasonably assured. Shipping and handling costs of $45,850, $43,034, and $38,628 in 2011, 2010 and 2009, respectively, are included in selling, marketing and administrative expenses. Accounts receivable are unsecured. Revenues from a major customer aggregated approximately 23.3%, 21.4% and 22.9% of net product sales during the years ended December 31, 2011, 2010 and 2009, respectively.

SEGMENT AND GEOGRAPHIC INFORMATION:

The Company operates as a single reportable segments encompassing the manufacturing and sale of confectionery products. Its principal manufacturing operations are located in the United States and Canada, and its principal market is in the United States. The Company also manufactures and sells confectionery products in Mexico, and exports products to Canada and countries worldwide.

The following geographic data includes net product sales summarized on the basis of the customer location and long-lived assets based on their location:

	2011	2010	2009
Net product sales:
United states	$487,185	$471,714	$455,517
Foreign	41,184	45,435	40,075
	$528,369	$517,149	$495,592
Long-lived assets:
United states	$170,173	$172,087	$176,044
Foreign	41,989	43,405	44,677
	$212,162	$215,492	$220,721

Calculate the accounts receivable turnover and average collection period for 2011. (Use Net Product Sales. Assume all sales were credit sales.) (Round answers to 1 decimal place, e.g. 15.2.)