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Question 5;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 $32,538;(The accompanying notes are an integral part of these statements.);Notes to Consolidated Financial Statements ($ in thousands);PROPERTY, PLANT AND EQUIPMENT;Depreciation is computed for financial reporting purposes by use of the straight-line method based on the useful lives of 20 to 35 years for building and 5 to 25 years for machinery and equipment. Depreciation expenses was $19,229, $18,279 and $17,862 in 2011, 2010 and 2009, respectively.;Goodwill and intangible assets;In accordance with authoritative guidance, goodwill and intangible assets with indefinite lives are not amortized, but rather tested for impairment at least annually unless certain interim triggering events or circumstances require more frequent testing. All trademarks have been assessed by management to have indefinite lives because they are expected to generate cash flows indefinitely. The Company has completed its annual impairment testing of its goodwill and trademarks at December 31 of each of the years presented. As of December 31, 2009, management ascertained that certain trademarks were impaired, and recorded a pre-tax charge of $14,000. No impairments of intangibles were recorded in 2011 and 2010. This determination is made by comparing the carrying value of the asset with its estimated fair value, which is calculated using estimates including discounted projected future cash flows. If the carrying value of goodwill exceeds the fair value, a second step would measure the carrying value and implied fair value of goodwill. Management believes that all assumptions used for the impairment tests are consistent with those utilized by market participants performing similar valuations.;Answer the following questions.;Warning;Don't show me this message again for the assignment Ok Cancel;What were the total cost and book value of property, plant, and equipment at December 31, 2011? (Enter the amounts in thousands.);Total cost $;Book value $;Warning;Don't show me this message again for the assignment Ok

 

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