Each student is to analyze the 2014 and 2013 financial statements of Tootsie Roll Industries, Inc. The 2012 financial statements can be found by going to either:
1) www.sec.gov → Filings tab at top → Company Filings Search; next to company name type, Tootsie → Tootsie Roll Industries Inc. (CIK# 0000098677) will appear → select the first 10K interactive documents for the 2014 and 2013 comparative financial statements. (To find the 2013 and 2012 comparative financial statements, scroll farther down to next 10K. You may need 2012 data to figure certain financial ratios in part 4 below).The "View Excel Document" link is helpful for parts 2 and 3 below.
Link to Tootsie Roll SEC filing documents: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000098677&owner=exclude&count=40.
2) www.tootsie.com → click Company tab and then financials from the dropdown menu. Click dropdown arrow and select 2014 for year to display in order to access the 2014 annual report and 10K. (The 2013 Annual Report is also available by selecting 2013).
For Tootsie Roll Industries, Inc.:
1. Answer the questions on the following pages. The answers can be found in the Tootsie Roll 2014 Annual Report.
2. Perform vertical analysis on the income statements and balance sheet information for fiscal periods 2014 and 2013. (Hint: The Excel format of the income statement and balance sheet can be downloaded from the SEC website by selecting "View Excel Documents" in the interactive data area.)
3. Perform horizontal analysis on the income statements and balance sheet information to show the dollar and percentage change between fiscal periods 2014 and 2013. (Hint: The Excel format of the income statement and balance sheet can be downloaded from the SEC website by selecting "View Excel Documents" in the interactive data area.)
4. Compute a selection of financial ratios relevant for evaluating Staples' LIQUIDITY, SOLVENCY, PROFITABILITY and MARKET INDICATORS for fiscal 2014 and 2013. Please select a total of at least 10 financial ratios. For some of the ratios you may need to access fiscal 2012 balance sheet numbers which can be found on the 2012 Annual Report. Show calculations.
5. Write a report (between 2 to 3 pages, double-spaced, 12 point, Times Roman font, with good grammar and spelling) summarizing your findings in parts 2, 3 and 4.
→ Submit to the Financial Statement Analysis Project drop-box, your solutions to all five parts. Please use a maximum of two files (one for the Excel work and one for the Word work.) Clearly label your submissions with your name.
Official Company Name_________________________________________________________
State of Incorporation__________________________________________________________
City and State of Headquarters____________________________ ______________________
Stock Exchange Securities & Where Listed________________________________________
Ticker Symbol(s)______ Primary SIC Code_____ Fiscal Year End ___________________
Independent Auditor (City)______________________________________________________
Description of Product or Service________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Company Size (Fiscal 2014): Total Assets ______________ Total Revenue _____________
Who is the Chairperson of the Board of Directors ___________________________________
Who is the Chief Executive Officer?_______________________________________________
Who is the President & Chief Operating Officer?_____________________________________
Who is the Chief Financial Officer? ________________________________________________
Who is the Corporate Controller? _________________________________________________
List the major sections of information included in the annual report.
List the names of all of the financial statements presented by the company.
Inventory valuation method & cost flow assumptions ________________________________
Depreciation method used ______________________________________________________
When Mr. Gordon joined the board in 1952, what was the name of the company?
According to the unaudited Quarterly Financial Data:
Which quarter of the year had the highest sales and was most profitable in 2014? What percentage of 2014 total product sales occurs in this quarter? Why do you think this quarter has the highest sales?
From the Consolidated Statements of Earnings and Retained Earnings:
What were the THREE sources of income/revenues in 2014?
What were the stock dividends in 2014 and in 2013?
What increased Retained Earnings by about $63.3 million in 2014?
From the Statements of Financial Position:
Does the 2014 Net property, plant and equipment of about $190 million intended to reflect the market value of these assets? If no, what does it reflect?
Why are 2014 prepaid expenses of $6 million included on the balance sheet (i.e., statement of financial position) rather than on the income statement?
What is the 12/31/14 accounts payable balance and why is it included as part of current liabilities rather than as part of noncurrent liabilities?
What is the 12/31/13 retained earnings?
Describe the difference between retained earnings and contributed capital (such as common stock)?
Dividends result in a decrease in which balance sheet account?
From the Statements of Cash Flows:
Indicated the cash provided or used in Tootsie's Tootsie Roll's operating activities, investing activities, and financing activities?
Should the negative net cash flows from investing and from financing activities be viewed negatively? Explain.
What is the top item that accounts for the difference between net earnings and net cash provided by operating activities in 2014? Why is this item added to net earnings?
Information for Ratio Analysis:
Identify the amounts reported for each of the items below.
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2014
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2013
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2012
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TOTAL REVENUES
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PRODUCT SALES
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PRODUCT COST OF GOODS
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PRODUCT GROSS PROFIT
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EARNINGS BEFORE INCOME TAXES
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INTEREST EXPENSE (See Note 6)
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NET INCOME
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EARNINGS PER SHARE
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QUICK ASSETS
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CURRENT ASSETS
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ACCOUNTS RECEIVABLE, NET
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INVENTORY
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PROPERTY, PLANT & EQUIPMENT, NET
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TOTAL ASSETS
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CURRENT LIABILITIES
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LONG-TERM LIABILITIES
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TOTAL LIABILITIES
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TOTAL STOCKHOLDERS EQUITY
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