Compute the dollar amount of change

Assignment Help Financial Accounting

Reference no: EM131153552

The financial statements of Tootsie Roll are presented below.

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	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

	December 31,
		2011		2010
CURRENT LIABILITIES:
Accounts payable		$10,683		$9,791
Dividends payable		4,603		4,529
Accrued liabilities		43,069		44,185
Total current liabilities		58,355		58,505
NONCURRENT LIABILITES:
Deferred income taxes		43,521		47,865
Postretirement health care and life insurance benefits		26,108		20,689
Industrial development bonds		7,500		7,500
Liability for uncertain tax positions		8,345		9,835
Deferred compensation and other liabilities		48,092		46,157
Total noncurrent liabilities		133,566		132,046
SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value-120,000 shares authorized-36,479 and 36,057 respectively, issued		25,333		25,040
Class B common stock, $.69-4/9 par value-40,000 shares authorized-21,025 and 20,466 respectively, issued		14,601		14,212
Capital in excess of par value		533,677		505,495
Retained earnings, per accompanying statement		114,269		135,866
Accumulated other comprehensive loss		(19,953	)	(11,213	)
Treasury stock (at cost)-71 shares and 69 shares, respectively		(1,992	)	(1,992	)
Total shareholders' equity		665,935		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			115,976		90,990		68,908
	Cash and cash equivalents at end of year			$78,612		$115,976		$90,990
	Supplemental cash flow information
			Income taxes paid	$16,906		$20,586		$22,364
			Interest paid	$38		$49		$182
			Stock dividend issued	$47,053		$46,683		$32,538
(The accompanying notes are an integral part of these statements.)

Answer the following questions. (Give the amounts in thousands of dollars, as shown in Tootsie Roll's annual report.)

1. What did Tootsie Roll report for the amount of inventories in its Consolidated Balance Sheet at December 31, 2011? At December 31, 2010? (Round amounts to thousands.)

		2011		2010
Inventories		$		$

2. Compute the dollar amount of change and the percentage change in inventories between 2010 and 2011. (Round percentages to 1 decimal place, e.g. 15.4% and other answer to thousands.)

	Change in inventories
Dollar amount	$
Percentage		%

3. Compute inventory as a percentage of current assets for 2011.(Round answer to 1 decimal place, e.g. 15.4%.)

Inventory as a percentage of current assets

4. What are the (product) cost of goods sold reported by Tootsie Roll for 2011, 2010, and 2009?

		2011		2010		2009
Product cost of goods sold		$		$		$

5. Compute the ratio of (product) cost of goods sold to net (product) sales in 2011. (Round percentage to 1 decimal place, e.g. 15.2%.)

Ratio of cost of goods sold to net

Reference no: EM131153552

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