Accounting -The company’s complete annual report

| January 30, 2017

Question
Question 1)

The company’s complete annual report, including the notes to its financial statements, is available in
the Investor Relations section at www.zetarplc.com.
Visit Zetar’s corporate website and answer the following questions from Zetar’s 2011 annual report.
What is the approximate tax rate of Zetar’s “Tax on profit from continuing activities”? (Round answer
to 0 decimal places, e.g. 25%.)

Zetar’s tax rate is approximately

%

Question 2)
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)
net
Total costs and expenses
5,025,760
Income before Interest and Income Taxes
1,055,028
Interest expense, net
92,183
Income before Income Taxes
962,845
Provision for income taxes
333,883
Net Income
$628,962
Net Income Per Share—Basic—Class B Common
$2.58
Stock
Net Income Per Share—Diluted—Class B Common
$2.56
Stock
Net Income Per Share—Basic—Common Stock
$2.85
Net Income Per Share—Diluted—Common Stock

$2.74

2010

2009

$5,671,009

$5,298,668

3,255,801
1,426,477

3,245,531
1,208,672

83,433

82,875

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

$2.08

$1.77

$2.07

$1.77

$2.29

$1.97

$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,

2011

2010

In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents
Accounts receivable—trade
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
60,706,419 in 2010
Additional paid-in capital
Retained earnings
Treasury—Common 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

$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

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
2010
In thousands of dollars
Cash Flows Provided from (Used by) Operating
Activities
Net income
$628,962
$509,799
Adjustments to reconcile net income to net cash provided
from operations:
Depreciation and amortization
215,763
197,116
Stock-based compensation expense, net of tax of $15,127,
28,341
32,055
$17,413 and $19,223, respectively

2009

$435,994
182,411
34,927

Excess tax benefits from stock-based compensation
Deferred income taxes
Gain on sale of trademark licensing rights, net of tax of
$5,962
Business realignment and impairment charges, net of tax of
$18,333, $20,635 and $38,308, respectively
Contributions to pension plans
Changes in assets and liabilities, net of effects from business
acquisitions and divestitures:
Accounts receivable—trade
Inventories
Accounts payable
Other assets and liabilities
Net Cash Provided from Operating Activities
Cash Flows Provided from (Used by) Investing
Activities
Capital additions
Capitalized software additions
Proceeds from sales of property, plant and equipment
Proceeds from sales of trademark licensing rights
Business acquisitions
Net Cash (Used by) Investing Activities
Cash Flows Provided from (Used by) Financing
Activities
Net change in short-term borrowings
Long-term borrowings
Repayment of long-term debt
Proceeds from lease financing agreement
Cash dividends paid
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

(13,997)
33,611
(11,072)

(1,385)
(18,654)

(4,455)
(40,578)

30,838

77,935

60,823

(8,861)

(6,073)

(9,438)
(115,331)
7,860
(205,809)
580,867

20,329
(13,910)
90,434
13,777
901,423

(323,961)
(23,606)
312
20,000
(5,750)
(333,005)

(179,538)
(21,949)
2,201


(199,286)

(126,324)
(19,146)
10,364

(15,220)
(150,326)

10,834
249,126
(256,189)
47,601
(304,083)
184,411
13,997

(384,515)
(438,818)
(190,956)
884,642
$693,686

1,156
348,208
(71,548)

(283,434)
92,033
1,385
10,199
(169,099)
(71,100)
631,037
253,605
$884,642

(458,047)

(8,252)

(263,403)
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

(54,457)
46,584
74,000
37,228
293,272
1,065,749

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


Earnings from operations
57,966
64,710
Other income (expense), net
2,946
8,358
Earnings before income taxes
60,912
73,068
Provision for income taxes
16,974
20,005
Net earnings
$43,938
$53,063
Net earnings
$43,938
$53,063
Other comprehensive earnings (loss)
(8,740)
1,183
Comprehensive earnings
$35,198
$54,246
Retained earnings at beginning of year.
$135,866
$147,687
Net earnings
43,938
53,063
Cash dividends
(18,360)
(18,078)
Stock dividends
(47,175)
(46,806)
Retained earnings at end of year
$114,269
$135,866
Earnings per share
$0.76
$0.90
Average Common and Class B Common shares outstanding
57,892
58,685
(The accompanying notes are an integral part of these statements.)

14,000
60,949
2,100
63,049
9,892
$53,157
$53,157
2,845
$56,002
$144,949
53,157
(17,790)
(32,629)
$147,687
$0.89
59,425

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
Less—Accumulated 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
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 value—120,000 shares authorized—36,479
and 36,057 respectively, issued
Class B common stock, $.69-4/9 par value—40,000 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

$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
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
Dividends paid in cash
Net cash used in financing activities

(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 following values for
each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers
to thousands.)
(1) Profit margin for 2011. (For Tootsie Roll, use “Total Revenue.”)
Profit margin
ratio
Tootsie Roll

%

Hershey
Company

%

(2) Gross profit for 2011. (For Tootsie Roll, use “Product” amounts.)
Gross profit (000’s)
Tootsie Roll
Hershey
Company

$
$

(3) Gross profit rate for 2011. (For Tootsie Roll, use “Product” amounts.)
Gross profit
rate
Tootsie Roll

%

Hershey
Company

%

(4) Operating income for 2011.
Operating income (000’s)
Tootsie Roll
Hershey
Company

$
$

(5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a
negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.)
Percent change
in
operating income
Tootsie Roll

%

Hershey
Company

%

Question 3)
Gerish Company buys merchandise on account from Mangus Company. The selling price of the goods
is $1,489 and the cost of the goods sold is $616. Both companies use perpetual inventory systems.
Journalize the transactions on the books of both companies. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Account Titles and
Explanation
Gerish Company

Mangus Company

(To record sale of merchandise)

Question 4)

Debit

Credit

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)
net
Total costs and expenses
5,025,760
Income before Interest and Income Taxes
1,055,028
Interest expense, net
92,183
Income before Income Taxes
962,845
Provision for income taxes
333,883
Net Income
$628,962
Net Income Per Share—Basic—Class B Common
$2.58
Stock
Net Income Per Share—Diluted—Class B Common
$2.56
Stock
Net Income Per Share—Basic—Common Stock
$2.85
Net Income Per Share—Diluted—Common Stock

$2.74

2010

2009

$5,671,009

$5,298,668

3,255,801
1,426,477

3,245,531
1,208,672

83,433

82,875

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

$2.08

$1.77

$2.07

$1.77

$2.29

$1.97

$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 receivable—trade
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

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

$410,655
593,308
9,402
24,088
261,392

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
60,706,419 in 2010
Additional paid-in capital
Retained earnings
Treasury—Common 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

1,173,775
1,748,500
617,276
3,539,551

1,298,845
1,541,825
494,461
3,335,131

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
2010
In thousands of dollars
Cash Flows Provided from (Used by) Operating
Activities
Net income
$628,962
$509,799
Adjustments to reconcile net income to net cash provided
from operations:
Depreciation and amortization
215,763
197,116
Stock-based compensation expense, net of tax of $15,127,
28,341
32,055
$17,413 and $19,223, respectively
Excess tax benefits from stock-based compensation
(13,997)
(1,385)
Deferred income taxes
33,611
(18,654)
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
77,935
$18,333, $20,635 and $38,308, respectively
Contributions to pension plans
(8,861)
(6,073)
Changes in assets and liabilities, net of effects from business
acquisitions and divestitures:
Accounts receivable—trade
(9,438)
20,329
Inventories
(115,331)
(13,910)
Accounts payable
7,860
90,434
Other assets and liabilities
(205,809)
13,777
Net Cash Provided from Operating Activities
580,867
901,423
Cash Flows Provided from (Used by) Investing
Activities
Capital additions
(323,961)
(179,538)
Capitalized software additions
(23,606)
(21,949)
Proceeds from sales of property, plant and equipment
312
2,201
Proceeds from sales of trademark licensing rights
20,000

Business acquisitions
(5,750)

Net Cash (Used by) Investing Activities
(333,005)
(199,286)
Cash Flows Provided from (Used by) Financing

2009

$435,994
182,411
34,927
(4,455)
(40,578)

60,823
(54,457)
46,584
74,000
37,228
293,272
1,065,749

(126,324)
(19,146)
10,364

(15,220)
(150,326)

Activities
Net change in short-term borrowings
Long-term borrowings
Repayment of long-term debt
Proceeds from lease financing agreement
Cash dividends paid
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

10,834
249,126
(256,189)
47,601
(304,083)
184,411
13,997

(384,515)
(438,818)
(190,956)
884,642
$693,686

1,156
348,208
(71,548)

(283,434)
92,033
1,385
10,199
(169,099)
(71,100)
631,037
253,605
$884,642

(458,047)

(8,252)

(263,403)
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
CURRENT ASSETS:
Cash and cash equivalents
Investments
Accounts receivable trade, less allowances of $1,731 and $1,531
Other receivables
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
Less—Accumulated 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 value—120,000 shares authorized—36,479
and 36,057 respectively, issued
Class B common stock, $.69-4/9 par value—40,000 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

2010

$78,612
10,895
41,895
3,391

$115,976
7,996
37,394
9,961

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

505,495
135,866
(11,213)
(1,992)
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
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 follow…

Get a 30 % discount on an order above $ 50
Use the following coupon code:
COCONUT
Order your essay today and save 30% with the discount code: COCONUTOrder Now
Positive SSL