Tootsie Roll Industries, Inc., is engaged in the manufacture and sale of confectionery products. Last

year, Tootsie Roll reported cost of goods sold of $352 million. This year, cost of goods sold was $342

million. Accounts payable was $9 million at the end of last year and $12 million at the end of this year.

Required:

1. For this year, compute the average number of days that Tootsie Rolls accounts payable are

outstanding.

2. Assume the confectionery products industry reports an average number of days that accounts pay- able are outstanding of 30. Comment on Tootsie Rolls number relative to the industry average.