The financial statements of tootsie roll are presented

Question

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
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. (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?
2. Compute the dollar amount of change and the percentage change in inventories between 2010 and 2011.
3. Compute inventory as a percentage of current assets for 2011.
4. What are the (product) cost of goods sold reported by Tootsie Roll for 2011, 2010, and 2009?
5. Compute the ratio of (product) cost of goods sold to net (product) sales in 2011.