Module 06 Course Project Tootsie Roll Industries Inc. Company Analysis

**ALL I NEED IS THE EXCEL MODULE 6 PART OF THIS COMPLETED****I will do the power point etc, Just need the module 6 part of the excel document completed. A good accounting person should be able to hammer that out no problem in 30 minutes. ** In this module, you will complete and submit your final project. First, complete the horizontal, vertical, and ratio analysis on the Module 06 tab in the Course Project Template workbook.Then, complete a PowerPoint presentation including the following information, with an emphasis on the analysis of the company’s financial information. You may find helpful information in the annual report, annual 10-K filing, and the following library databases: Mergent Online, Business Source Complete via EBSCO, and Business via ProQuest. (For database help see http://guides.rasmussen.edu/business/databasehelp)Your final Company Analysis should include the following:Brief company historyCompany values and goalsProduct linesIndustry ChallengesMain CompetitorsCompany Risks (See Management Discussion and Analysis in Annual Filing)Horizontal Analysis – include a minimum of 3 income statement items and 3 balance sheet items to highlight, positive or negative. Share what these items mean in terms of the company’s performance.Vertical Analysis – include a minimum of 3 income statement items and 3 balance sheet items to highlight, positive or negative. Share what these items mean in terms of the company’s performance.Ratio Analysis – Address ratios in all five areas of ratio analysis: liquidity, asset management, solvency, profitability, and market analysis. Interpret these ratios, and explain what they mean for Tootsie Roll Industries Inc., supporting your explanation with your calculations. Compare your company to the competition and explain which company is performing better. In addition to using the information provided on the company’s website, also try Mergent Online: http://rasmussen.libanswers.com/faq/32789 Support your explanation with your calculations of your company and research of the competition or industry.Include APA in-text citations and references for all sources used (including non-clipart images). Information about how to include in-text citations and references in a PowerPoint: http://rasmussen.libanswers.com/faq/32484As with previous assignments, in the References box of the spreadsheet, include an APA reference for all information retrieved, whether from the Tootsie Roll website itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821Your final submission will include TWO files: Your completed Course Project Template Workbook Excel file, and your Module 06 Company Analysis PowerPoint slideshow, and will be due in the end of Module 06.Need help? Click here to work with a professional Accounting tutor in Live Help. See our Answer FAQ on the difference between Live Help and Tutor Match. Also see the Writing Guide for additional guidance on Power Point presentations and Course Projects.Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.
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Required: Complete the purple areas of the chart, and the questions in the text boxes below.
List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
and replace Year 3 with 2013.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll we
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA he
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Income Statement
Year 1
Year 2
Total Revenue
Product Cost of Goods Sold
Rental and Royalty Cost
Total Gross Margin
Selling, Marketing and Administrative Expenses
Earnings from Operations
Income Taxes
Net Earnings
Question 1: What is Tootsie Roll’s Gross Profit Margin? (Hint: Divide Total Gross Margin by Total Revenue). What
figure represent?
Question 2:What is Tootsie Roll’s Profit Margin? (Hint: Profit margin is calculated by dividing Net Earnings by Total Sales)
What does this figure represent?
Question 3: What are Tootsie Roll’s earnings per share in the three years presented? (Hint: Check the income statement
after Net Earnings for this information.)
Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industries
recognize revenue?
Question 5: Has Net Product Sales shown an increasing or decreasing trend over the past three years? Interpret this tren
Should this be a concern for the company? Why or why not?
Question 6: Has the Net Earnings shown an increasing or decreasing trend over the past three years? Interpret this trend
Should this be a concern for the company? Why or why not?
Question 7: Compare the Net Product Sales trend and the Net Earnings trend. Are these two items trending the same?
Interpret any differences and infer what those may mean in relation to the company’s operating decisions over the past
three years.

References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide:
http://guides.rasmussen.edu/apa )
er from the Tootsie Roll website
/32821 For general APA help,
Year 3
Total Revenue). What does this
ng Net Earnings by Total Sales).
: Check the income statement
w does Tootsie Roll Industries, Inc.
hree years? Interpret this trend.
ree years? Interpret this trend.
wo items trending the same?
rating decisions over the past
aq/32821 ; APA Guide:
Required: Complete the purple areas of the chart, and the questions in the text boxes below.
List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
and replace Year 3 with 2013.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll we
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA he
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Balance Sheet
Cash and Cash Equivalents
Investments
Accounts Receivable Trade
Inventory (Add: FG and WIP + RM & supplies lines)
Total Current Assets
Net Property, Plant and Equipment
Goodwill
Trademarks
Total Assets
Accounts Payable
Accrued Liabilities
Total Current Liabilities
Total Noncurrent Liabilities
Total liabilities (Add total current liab + total noncurrent)
Common Stock
Class B Common Stock
Retained Earnings
Treasury Stock
Total Equity
Total liabilities and Shareholders Equity
2016
119,145
67,513
42,964
57,531
299,300
180,905
73,237
175,024
920,101
10,320
46,300
63,561
145,002
208,563
26,181
16,820
43,833
-1,992
711,538
920,101
Question 1: Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method of depreciation does To
Industries Inc. use for their property, plant and equipment?
Using Note 1, the straight-line method is used to compute for financial reporting purposes.
Question 2: : Refer to Note 1 in the Notes to the Consolidated Financial Statements. What method does Tootsie Roll Indu
to value its inventory?
to value its inventory?
Tootise Roll Industries Inc. use the LIFO method to detertimne the inventories.
Question 3: Calculate Tootsie Roll Industry Inc’s fixed asset turnover and interpret it’s meaning. Show your work. (Hint: Fi
Turnover is calculated as Net Earnings/ Net Property, Plant and Equipment)
67,319/180,905 = 0.4
The fixed asset turnover shows if the company is doing an effective job of generating sales with a relatively small amou
assets.
Question 4: Calculate Tootsie Roll Industry Inc’s accounts receivable turnover for the most recent year
your work. (Hint: Accounts Receivable Turnover is calculated as Total Sales/Average Accounts Receivable.)
Total Sales: 521,100
Average Accounts Receivable: 42,964 +51,010 = 93,974/2 = 46,987
Accounts Receivable Turnover: 521,100/46,987 = 11.09 = 11.1 turnover. The accounts receivable turned over 11 times
past year, and the average account recieved was collected in 33 days, which is rather fast!
Question 5: Calculate Tootsie Roll Industry Inc’s inventory turnover ratio for the most recent year and interpret its meanin
work. (Hint: Inventory turnover ratio is calculated as Product Cost of Goods Sold/Average Inventory.)
Product Cost of Good = 320,290
Average Inventory: 59,897
Inventory Turnover = 320,290/59897 = 5
That shows that the company had 5 turnovers per year and if you divide it into 365 days, there were 73 days of invento
Question 6: Has the total current assets amount show an increasing or decreasing trend from one year to the next? What
accounts experienced the largest change? (Hint: To find the amount of change, subtract the prior year amount from the c
amount. Positive answers mean the account has increased by that amount, negative answers mean the account has decre
amount.)
2014: 264,621
2015: 293,806
2016: 299,300
2014-2015: 29,185
2015-2016: 5,494
The toal current assets amounts show an increasing trend each year. The account from 2014
movement and that was 29,185.
Question 7: Is the amount of current liabilities more or less than the long-term liabilities for the most recent year? What d
result mean?
The amount of current liabilities is less than the long-term liabilites for 2016. This shows that the amount on the long
are not due within the 2016 accounting year but will be in the future.
Question 8: Is the total stockholders’ equity more or less than total liabilities for the most recent year? What does the res
The total stockholders’ equity is more than the total liabilites which indicate that the ratio will be lower than 1. This als
Tootsie does not have a lot of debt at all!
The total stockholders’ equity is more than the total liabilites which indicate that the ratio will be lower than 1. This als
Tootsie does not have a lot of debt at all!
Question 9: Calculate the debt ratio and current ratio for your company for the most recent year. Generally speaking,
ratios tell you?
Debt ratio: 208,563/920,101 = 0.2
Current ratio: 299,300/63,561 = 4
The debt ratio shows that it’s under 1, which means that the company has pretty low debt. However, the current ratio i
means that there are 4 times more current assets than current liabilities and the company can easily make current debt
without issue.
Question 10: What is the main reason for the change in stockholders’ equity? What is the largest component of stockhold
The reason for the change in stockholder’s equity is definitely the type of capital contribution. The largest chunk of stoc
equity is the assets.
Question 11: How many classes of common stock does the company have? For each class, how many shares are authorize
and outstanding? (To find outstanding shares, subtract any treasury stock for that class from the number issued to find th
outstanding.)
There are 2 classes of common stock. Common stock has 26,181 shares issued and Class B common stock has 16,820 sh
Question 12: Calculate the Return on Stockholder’s Equity for the most recent year and interpret its meaning. Show your
Return on Stockholders Equity is calculated as Net Earnings/Average Total Equity.)
Net Earnings: 67,319
Average Total Equity: 711,538+698,183 /2 = 704,860.5
Return on Stockholder’s Equity for 2016: 67319/704860.5 = 0.09
References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide:
http://guides.rasmussen.edu/apa )
“Anual Reports.” Tootsie, tootsie.com/financials/.
ProfAlldredge, director. Youtube. www.youtube.com/watch?v=kPn-t6NSxfQ.
ProfAlldredge, director. Youtube. www.youtube.com/watch?v=oLmW7rMvzuA.
n the text boxes below.
ear 2, etc. Example: If
eplace Year 2 with 2014,
trieved, whether from the Tootsie Roll website
outside sources.
swers.com/faq/32821 For general APA help,
2015
126,145
42,155
51,010
62,263
293,806
184,586
73,237
175,024
908,983
11,322
50,117
72,062
138,373
210,435
25,960
16,348
52,329
-1,992
698,183
908,983
2014
100,108
39,450
43,253
70,379
264,621
190,081
73,237
175,024
910,386
11,641
46,482
64,459
154,791
219,250
25,892
15,894
64,927
-1,992
690,809
910,386
ements. What method of depreciation does Tootsie Roll
eporting purposes.
atements. What method does Tootsie Roll Industries Inc. use
nterpret it’s meaning. Show your work. (Hint: Fixed Asset
f generating sales with a relatively small amount of fixed
ver for the most recent year and interpret its meaning. Show
/Average Accounts Receivable.)
The accounts receivable turned over 11 times during the
ich is rather fast!
r the most recent year and interpret its meaning. Show your
Sold/Average Inventory.)
t into 365 days, there were 73 days of inventory on hand.
trend from one year to the next? What account or
nge, subtract the prior year amount from the current year
, negative answers mean the account has decreased by that
account from 2014-2015 experienced the largest
erm liabilities for the most recent year? What does the
16. This shows that the amount on the long-term liabilities
es for the most recent year? What does the result mean?
ate that the ratio will be lower than 1. This also shows that
ate that the ratio will be lower than 1. This also shows that
the most recent year. Generally speaking, what do these
tio: 299,300/63,561 = 4
s pretty low debt. However, the current ratio is high which
nd the company can easily make current debt payments
What is the largest component of stockholders’ equity?
capital contribution. The largest chunk of stockholders
? For each class, how many shares are authorized, issued,
for that class from the number issued to find the number
sued and Class B common stock has 16,820 shares issued.
ent year and interpret its meaning. Show your work. (Hint:
,538+698,183 /2 = 704,860.5
answers.com/faq/32821 ; APA Guide:
Required: Complete the purple areas of the chart, and the questions in the text boxes below.
List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
and replace Year 3 with 2013.
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll we
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA he
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Statement of Cash Flows
Net Earnings
Net Cash Provided by Operating Activities
Net Cash Used in Investing Activities
Net Cash Used in Financing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Year 1
Year 2
66127
91073
-8523
-53912
26037
100108
126145
62860
88769
-30459
-44664
11825
88283
100108
Question 1: Which method of reporting cash flows from operations does the company use?
Indirect
Question 2: Compare net earnings to the net cash provided by operating activities. Explain why these two figures are differ
these two numbers trending in the same direction? What is the largest adjustment item in the operating section for the m
recent year?
The difference is the adjustments needed to convert the total net earnings to the cash amount from operating activities.
Depreciation is the largest adjustment.
Question 3: What items in the investing section have created the largest cash inflow? Largest cash outflow? Did investing a
provide cash or use cash in each of the three years presented? How can you tell?
Sale and maturity for sale securities created the largest cash inflow. Purchases from available for sale securities have crea
largest cash outflow. Investing activity brought more use of cash. This shows by the difference between cash inflow and ca
outflow in investing activities.
Question 4: Did the financing activities provide cash or use cash in each of the three years presented? What are the stock
repurchase trends of the company? What are the dividend trends of the company?
The Financing activities provided use cash in all 3 years. Stock repurchase has been showing a decreasing trend. Dividends h
been increasing.
Question 5: Does the cash provided by operations cover the amounts of cash used for both investing and financing activitie
does this result mean for the overall amount of cash in the company from the start of the year to the end of the year? Has
increased or decreased? Should this be a concenr for the company?
Cash provided by operations covers investing and financing activities. The overall amount of cash has increased, meaning t
amount of cash in the company is increasing and should not be a concern at all.
Now, locate the Auditors Report, titled “Report of Independent Registered Public Accounting Firm.” Address the
questions related to this report.
Question 1: Who is the letter addressed to?
Board of Directors and Shareholders of Tootsie Roll Industries
Question 2: What is management responsible for?
financial statements, maintaining effective control over financial reporting, and for its assessment on the effectiveness of
over financial reporting.
Question 3: What is the auditor responsible for?
The auditor is responsible for examining and giving evidence supporting the amounts, and disclosures in the financial state
They also are responsible for assessing the accounting principles used and estimates made by management, and evaluatin
Question 4: Does the auditor give absolute assurance that the financials are free of material error?
Yes it does.
Yes it does.
Question 5: What is the level of assurance given by the auditor?
Almost certain.
Question 6: What policies and procedures does a company’s internal control over financial reporting include?
They must pertain to the maintenance of records in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets the company has.
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being m
only in accordance with authorizations of management and directors of the company.
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of t
company’s assets that could have a material effect on the financial statements.
Question 7: What audit firm signed the audit letter?
IL audit firm in Chicago
References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA Guide:
http://guides.rasmussen.edu/apa )
Tootsie Roll Industries, Inc. (2017). annual report and Form 10K. Retrieved from
http://http://www.annualreports.com/Company/tootsie-roll-industries-inc
ssen.edu/apa )
from the Tootsie Roll website
2821 For general APA help,
Year 3
60849
109823
-47963
-37425
24421
63862
88283
these two figures are different. Are
operating section for the most
from operating activities.
ash outflow? Did investing activities
or sale securities have created the
between cash inflow and cash
ented? What are the stock
ecreasing trend. Dividends have
esting and financing activities? What
to the end of the year? Has it
sh has increased, meaning the overal
unting Firm.” Address the following
ent on the effectiveness of control
osures in the financial statements.
management, and evaluating the
orting include?
ect the transactions and
n of financial statements in
of the company are being made
tion, use, or disposition of the
2821 ; APA Guide:
Required: Complete the purple cells for horizontal and vertical analysis for Tootsie Roll Industries using the follo
Vertical Analysis: (Financial Statement item/base amount), where your base amount is Total Revenue for the
Horizontal Analysis: (Current year-base year)/base year
Then, complete the purple cells in the financial ratios below. You will use the analyses on this tab of the workbo
In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll we
itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
Instructions for citing a 10k or Annual Report: http://rasmussen.libanswers.com/faq/32821 For general APA he
visit the APA Guide: http://guides.rasmussen.edu/apa
Tootsie Roll Industries Inc.
Income Statement
Year 1
Total Revenue
Product Cost of Goods Sold
Rental and Royalty Cost
Total Gross Margin
Selling, Marketing and Administrative Expenses
Earnings from Operations
Income Taxes
Net Earnings
Balance Sheet
Cash and Cash Equivalents
Investments
Accounts Receivable Trade
Inventory (Add: FG and WIP + RM & supplies lines)
Total Current Assets
Net Property, Plant and Equipment
Goodwill
Trademarks
Total Assets
Accounts Payable
Accrued Liabilities
Total Current Liabilities
Total Noncurrent Liabilities
Total liabilities (Add total current liab + total noncurrent)
Common Stock
Class B Common Stock
Retained Earnings
0
0
0
0
0
0
0
0
Year 1
119,145
67,513
42,964
57,531
299,300
180,905
73,237
175,024
920,101
10,320
46,300
63,561
145,002
208,563
26,181
16,820
43,833
Treasury Stock
Total Equity
Total liabilities and Shareholders Equity
-1,992
711,538
920,101
Tootsie Roll Industries
Formula
Liquidity Ratios
Current Ratio
Acid Test Ratio
*Total Current
Assets/Total Current
Liabilities
*(Cash & Cash
Equivalents
+Iinvestments +
Accounts Receivable
Trade)/Total Current
Liabilities
Asset Management Ratio
Inventory Turnover
*Product Cost of
Goods Sold/Average
Inventory
(remember, Avg Inv is
beginning year inv +
ending year inv,
result divided by 2.)
Solvency Ratios
Debt ratio
Times Interest Earned Ratio
*Total
Liabilities/Total
Assets
*Operating
Income/Interest
Expense
Profitability Ratios
Gross Profit Percent
*Total Gross
Margin/Total
Revenue
Return on Net Sales
*Net Earnings/Total
Sales
Earnings Per Share (EPS)
**Locate in research
(on company income
statement)
Market Analysis
Price Earning Ratio
**Locate in research
(on Internet)
Dividend Yield
**Locate in research
(on Internet)
*Calculated by Author
**Located in research
References: (Hint! Citing a 10K and/or Annual Report: http://rasmussen.libanswers.com/faq/32821 ; APA
Guide: http://guides.rasmussen.edu/apa )
sis for Tootsie Roll Industries using the following formulas:
e your base amount is Total Revenue for the income statement and Total Assets for the balance sheet.
l use the analyses on this tab of the workbook to create your final proje …
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