Copy of FSmith_AccountingTootsieIncome_101619.xlsx -...

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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 T itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources. Instructions for citing a 10k or Annual Report: For g visit the APA Guide: Tootsie Roll Industries Inc. Income Statement 2018 2017 Total Revenue 518,920,000 519,289,000 Product Cost of Goods Sold 329,880,000 326,411,000 Rental and Royalty Cost 867 972 Total Gross Margin 188,173,000 191,906,000 Selling, Marketing and Administrative Expenses 117,691,000 121,484,000 Earnings from Operations 70,482,000 70,422,000 Income Taxes 16,401 3,907 Net Earnings 56,893,000 80,864,000 Question 1: What is Tootsie Roll's Gross Profit Margin? (Hint: Divide Total Gross Margin by Total Revenu figure represent? 2018 518,920,000 / 188,173,000 =36% 2017 519,289,000 / 191,906,000 =37% 2016 521,100,000 / 199,212,000 =38% Question 2:What is Tootsie Roll's Profit Margin? (Hint: Profit margin is calculated by dividing Net Earning What does this figure represent? 2018 11% (10.9) 2017 16% (15.5) 2016 13% (12.9)
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Question 3: What are Tootsie Roll's earnings per share in the three years presented? (Hint: Check the in after Net Earnings for this information.)represent? 2018 $0.89 2017 $1.24 2016 $1.02 Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Toots recognize revenue? Revenue is reconized when product is delivered to customers. Question 5: Has Net Product Sales shown an increasing or decreasing trend over the past three years? I Should this be a concern for the company? Why or why not? The past 3 years there has been a decline i been by a small margin. I really do not think it should be a concern for the company like I said its by a sm looking over at 2015 there was a huge drop but since they have maintained their margins Net Margin, O are slowly moving upwards. Question 6: Has the Net Earnings shown an increasing or decreasing trend over the past three years? In Should this be a concern for the company? Why or why not? from 2016 to 2017 there was an increase b was a substanual decrease with the cost of goods have rose about $10 million in the three years. I woul cause of concern Question 7: Compare the Net Product Sales trend and the Net Earnings trend. Are these two items trend Interpret any differences and infer what those may mean in relation to the company's operating decision three years. These two items are not trending the same. Net Product sales seem to be maintaing with seem to be up and down with Earnings from Operations maintained as the year before COGS went up an little from the year prior but the Net Earnings was 29% down from the year before .
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References: (Hint! Citing a 10K and/or Annual Report: ; AP ) ( ( ) ( )
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