MBA 502ADr. Lawrence Financial Statement Analysis Project
Each student is to analyze the 2012 and 2011 financial statements of Tootsie Roll Industries, Inc. The 2012 financial statements can be found by going to either:
1) .sec.gov/”>www.sec.govª Filings tab at topª Company Filings Search; next to company name type, Tootsieª Tootsie Roll Industries Inc. (CIK#.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000791519&owner=exclude&count=40″>0000098677) will appearªselectthe 10K interactive documents; (To find the 2011 financial statements, scroll farther down to find the 2011 10K.) The “View Excel Document” link is helpful for parts 2 and 3 below.
2) .tootsie.com/”>www.tootsie.com ª select the Company Information button in the top left cornerª select Financial Information in top left cornerª select 2012 as the display yearª select the 2012 Annual Report. (The 2011 Annual Report is also available under the display years step.)
For Tootsie Roll Industries, Inc:
1. Answer the questions on the following pages.
2. Perform vertical analysis on the income statements and balance sheet information for fiscal periods 2012 and 2011. (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 2012 and 2011. (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 2012 and 2011. For some of the ratios you may need to access fiscal 2010 balance sheet numbers which can be found on the 2011 Annual Report. Show calculations.
5. Write a report (maximum of 2 typed pages, 1½-spaced lines, use good grammar and spelling) summarizing your findings in parts 2, 3 and 4. Attach computations for parts 2, 3 and 4.
â Submit to the Financial Statement Analysis Project dropbox, 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 2012): 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______________________________________________________
According to the unaudited Quarterly Financial Data:
Which quarter of the year had the highest sales and was most profitable in 2012? What percentage of 2012 total product sales occurs in this quarter? Why do you think this quarter has the highest sales?
From the Statement of Earnings:
What are the THREE sources of income/revenues in 2012?
What are the FOUR categories of expenses reported for fiscal 2012?
From the Statement of Retained Earnings and Note 5:
In addition to the various unrealized gains and losses reported on the Statement of Comprehensive Earnings, what were the reported causes of changes in Stockholders Equity accounts in 2012?
From the Statements of Financial Position:
How much of Tootsie Roll Industries 2012 fiscal year-end assets were financed by creditors?
How much of Tootsie Roll Industries 2012 fiscal year end assets were financed by internally generated funds? [Hint: Retained Earnings plus Accumulated Other Comprehensive Income (-Loss)]
What are the two components of Contributed Capital? Briefly explain each.
From the Statements of Cash Flows:
Is Tootsie Roll Industries generating cash from operating activities? Investing activities? Financing activities? Briefly explain.
What are the top two items that account for the difference between net earnings and net cash provided by operating activities in 2012?
Information for Ratio Analysis:
Identify the amounts reported for each of the items below.
2012
2011
2010
TOTAL REVENUES
PRODUCT SALES
PRODUCT COST OF GOODS
PRODUCT GROSS PROFIT
EARNINGS BEFORE INCOME TAXES
INTEREST EXPENSE (See Note 6)
NET INCOME
EARNINGS PER SHARE
QUICK ASSETS
CURRENT ASSETS
ACCOUNTS RECEIVABLE, NET
INVENTORY
PROPERTY, PLANT & EQUIPMENT, NET
TOTAL ASSETS
CURRENT LIABILITIES
LONG-TERM LIABILITIES
TOTAL LIABILITIES
TOTAL STOCKHOLDERS EQUITY
CASH DIVIDENDS PER SHARE
STOCK PRICE PER SHARE (Year-end)