This is a repost, please help me on my final paper, I had it extended until today, my last day, thanks.
shemakaCOMPLETE requirements listed under “Instructions” for Chapter 13 (pg 744).
CHAPTER 13, PAGE 744:
FINANCIAL REPORTING PROBLEM: Tootsie Roll Industries, Inc.
BYP13-1 Your parents are considering investing in Tootsie Roll Industries common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Fortunately, excerpts from a recent annual report of Tootsie Roll are presented in Appendix A of this textbook.
Instructions
(a) Make a 5-year trend analysis, using 2007 as the base year, of (1) net sales and (2) net earnings. Comment on the significance of the trend results.
(b) Compute for 2011 and 2010 the (1) debt to assets ratio and (2) times interest earned. (See Note 6 for interest expense.) How would you evaluate Tootsie Roll’s long-term solvency?
(c) Compute for 2011 and 2010 the (1) profit margin, (2) asset turnover, (3) return on assets, and (4) return on common stockholders’ equity. How would you evaluate Tootsie Roll’s profitability? Total assets at December 31, 2009, were $836,844,000, and total stockholders’ equity at December 31, 2009, was $654,244,000.
(d) What information outside the annual report may also be useful to your parents in making a decision about Tootsie Roll?
COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey
BYP13-2 The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll Industries in Appendix A.
Instructions
(a) Based on the information in the financial statements, determine each of the following for each company:
(1) The percentage increase (i) in net sales and (ii) in net income from 2010 to 2011.
(2) The percentage increase (i) in total assets and (ii) in total stockholders’ equity from 2010
to 2011.
(3) The earnings per share for 2011.
(b) What conclusions concerning the two companies can be drawn from these data?