What is the par or stated value per share

Assignment Help Financial Accounting

Reference no: EM131160368

The stockholders' equity section of Tootsie Roll Industries' balance sheet is shown in the Consolidated Statement of Financial Position. (Note that Tootsie Roll has two classes of common stock. To answer the following questions, add the two classes of stock together.)

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

Liabilities and Shareholders' Equity			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.

1. What is the par or stated value per share of Tootsie Roll's common stock? (Round answer to 4 decimal places, e.g. 1.2531.)

2. What percentage of Tootsie Roll's authorized common stock was issued at December 31, 2011? (Round to 0 decimal places, e.g. 17%)

3. How many shares of common stock were outstanding at December 31, 2010, and at December 31, 2011? (Enter the answers in thousands.)

4. Calculate the payout ratio, earnings per share, and return on common stockholders' equity for 2011. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal places, e.g. 12.5%.)

Reference no: EM131160368

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