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Broadening Your Perspective 11-1 The stockholders' equity section of Tootsie Roll Industries' balance sheet is shown in the Consolidated Statement of...

Broadening Your Perspective 11-1

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.)


Question #1: 

Broadening Your Perspective 11-1

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

Broadening Your Perspective 11-1

Percentage of common stock issued  ____ % 






Question #2: 

Broadening Your Perspective 11-1
What is the par or stated value per share of Tootsie Roll’s common stock?
Broadening Your Perspective 11-1

Par or stated value per share   $ _______


Top Answer

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1 comment
  • 36479000+21025000 = 57504000/160000000 = 36%,
    • ruchi26
    • Apr 21, 2016 at 2:01pm

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