financial analysis

| September 29, 2018

MBA
502A—Dr. Lawrence Financial Statement Analysis Project

Each
student is to analyze the 2012 and 2011 financial statements of Tootsie Roll
Industries, Inc. The 2012 financial
statements can be found by going to either:
1)
.sec.gov/”>www.sec.govª Filings tab at topª
Company Filings Search; next to company name type, Tootsieª Tootsie Roll Industries Inc. (CIK#.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000791519&owner=exclude&count=40″>0000098677)
will
appearªselectthe 10K interactive documents; (To find the 2011 financial statements,
scroll farther down to find the 2011 10K.)
The
“View Excel Document” link is helpful for parts 2 and 3 below.
2)
.tootsie.com/”>www.tootsie.com
ª select
the Company Information button in
the top left cornerª
select Financial Information in top left cornerª select 2012 as the display yearª select the 2012 Annual Report. (The
2011 Annual Report is also available under the display years step.)

For Tootsie Roll
Industries, Inc:
1.
Answer the questions on the
following pages.

2.
Perform vertical analysis on the income
statements and balance sheet information for fiscal periods 2012 and 2011. (Hint: The Excel format of the income statement and
balance sheet can be downloaded from the SEC website by selecting “View
Excel Documents” in the interactive data area.)

3.
Perform horizontal analysis on the income
statements and balance sheet information to show the dollar and percentage
change between fiscal periods 2012 and 2011. (Hint:
The Excel format of the income statement and balance sheet can be
downloaded from the SEC website by selecting “View Excel Documents”
in the interactive data area.)

4.
Compute a selection of financial ratios
relevant for evaluating Staples’ LIQUIDITY, SOLVENCY, PROFITABILITY and MARKET
INDICATORS for fiscal 2012 and 2011.
For some of the ratios you may need to access fiscal 2010 balance sheet numbers
which can be found on the 2011 Annual Report. Show calculations.

5.
Write a report (maximum of 2 typed pages, 1½-spaced
lines, use good grammar and spelling) summarizing your findings in parts 2, 3 and
4. Attach computations for parts 2, 3
and 4.

â Submit to the Financial Statement Analysis
Project dropbox, your solutions to all five parts. Please use a maximum of two
files (one for the Excel work and one for the Word work.) Clearly label your
submissions with your name.

Official
Company Name_________________________________________________________
State
of Incorporation__________________________________________________________
City
and State of Headquarters____________________________ ______________________
Stock
Exchange Securities & Where Listed________________________________________
Ticker
Symbol(s)______ Primary SIC Code_____ Fiscal Year End ___________________
Independent
Auditor (City)______________________________________________________
Description of Product or
Service________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Company
Size (Fiscal 2012): Total Assets______________
Total Revenue_____________
Who
is the Chairperson of the Board of Directors ___________________________________
Who
is the Chief Executive Officer?_______________________________________________
Who
is the President & Chief Operating Officer?_____________________________________
Who
is the Chief Financial Officer? ________________________________________________
Who
is the Corporate Controller? _________________________________________________
List
the major sections of information included in the annual report.

List
the names of all of the financial statements presented by the company.

Inventory valuation method & cost flow assumptions________________________________
_____________________________________________________________________________
Depreciation method used______________________________________________________
According to the unaudited Quarterly
Financial Data:
Which quarter of the year had the highest sales and was
most profitable in 2012? What percentage
of 2012 total product sales occurs in this quarter? Why do you think this quarter has the highest
sales?

From the Statement of Earnings:
What are the THREE sources of income/revenues in 2012?

What are the FOUR categories of expenses reported for
fiscal 2012?

From the Statement of Retained Earnings and
Note 5:
In addition to the various unrealized gains and losses
reported on the Statement of Comprehensive Earnings, what were the reported
causes of changes in Stockholder’s Equity accounts in 2012?

From the Statements of Financial Position:
How much of Tootsie
Roll Industries’ 2012 fiscal year-end assets were financed by creditors?

How much of Tootsie
Roll Industries’ 2012 fiscal year end assets were financed by internally
generated funds? [Hint: Retained Earnings plus Accumulated Other
Comprehensive Income (-Loss)]

What are the two
components of Contributed Capital? Briefly
explain each.

From the Statements of Cash Flows:
Is Tootsie Roll
Industries’ generating cash from operating activities? Investing activities?
Financing activities? Briefly explain.

What are the top two
items that account for the difference between net earnings and net cash
provided by operating activities in 2012?

Information for Ratio Analysis:
Identify the amounts
reported for each of the items below.

2012

2011

2010

TOTAL REVENUES

PRODUCT SALES

PRODUCT COST OF
GOODS

PRODUCT GROSS
PROFIT

EARNINGS BEFORE
INCOME TAXES

INTEREST EXPENSE
(See Note 6)

NET INCOME

EARNINGS PER SHARE

QUICK ASSETS

CURRENT ASSETS

ACCOUNTS
RECEIVABLE, NET

INVENTORY

PROPERTY, PLANT
& EQUIPMENT, NET

TOTAL ASSETS

CURRENT LIABILITIES

LONG-TERM
LIABILITIES

TOTAL LIABILITIES

TOTAL STOCKHOLDERS
EQUITY

CASH DIVIDENDS PER
SHARE

STOCK PRICE PER
SHARE (Year-end)

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