Module 03 Written Assignment – The Balance Sheet Review the account balances of Ma and Pa Grocery as of December 31, 20##, in the Excel Template. Requirements: 1. Prepare the Statement of Retained...

Module 02
    
    Required: Complete the purple areas of the chart, and the questions in the text boxes below.
    List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
    the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
    and replace Year 3 with 2013.
    In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website
    itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
    Instructions for citing a 10k or Annual Report: http:
asmussen.libanswers.com/faq/32821 For general APA help,
    visit the APA Guide: http:
guides.rasmussen.edu/apa
    Tootsie Roll Industries Inc.
    Income Statement    2018    2017    2016
    Total Revenue    518,920    519,289    521,100
    Product Cost of Goods Sold    329,880    326,411    320,869
    Rental and Royalty Cost    867    972    1,019
    Total Gross Margin    188,173    191,906    199,212
    Selling, Marketing and Administrative Expenses    117,691    121,484    107,979
    Earnings from Operations    70,482    70,422    91,233
    Other income    2,724    14,139    6,679
    Income Taxes    16,401    3,907    30,593
    Net Earnings    56,805    80,654    67,319
Question 1: What is Tootsie Roll's Gross Profit Margin? (Hint: Divide Total Gross Margin by Total Revenue). What does this figure represent?
The gross profit margin in the year 2018 is 36% (188,173/518920). In the year 2017 it is 37% and in the year 2016 it is 38%. This number represents the profit earned after deducting the costs associated with the selling and production of the product. It also determines the effciiency of the company in producing the goods and services. The gross margin of the entity has reduced in the cu
ent year as compared to previous year.
Question 2:What is Tootsie Roll's Profit Margin? (Hint: Profit margin is calculated by dividing Net Earnings by Total Sales). What does this figure represent?
The net profit margin in the year 2018 is 11% (56,805/518920). In the year 2017 it is 16% and in the year 2016 it is 13%. This number represents the profitability of the entity and profit earned by the entity through its various business operations of the entity. The net profit margin of the entity is lower in cu
ent as compared to previous year.
Question 3: What are Tootsie Roll's earnings per share in the three years presented? (Hint: Check the income statement after Net Earnings for this information.)
The earnings per share of the entity is calculated by dividing the net income attributable to shareholders by the number of shares outstanding. The earnings per share of the entity in the year 2018 is $0.89 and in the year 2017 it is $1.24 and in the year 2016 the earnings per share is $1.02.
Question 4: According to note 1 in the Notes to the Consolidated Financial Statements, how does Tootsie Roll Industries, Inc. recognize revenue?
The revenue of the entity basically from net product sales result from the sale of goods is based on the customer purchase order. The entity records revenue based on five step model according to accounting standard. Further the adjustment for estimated cash discounts on payment, product return are variable consideration and recorded as reduction from sales in the same period and such estimates are recorded on historical avearges. The net product sale is recorded when the entity delivers the product to the customer.
Question 5: Has Net Product Sales shown an increasing or decreasing trend over the past three years? Interpret this trend. Should this be a concern for the company? Why or why not?
There is decreasing trend in the net product sales of the entity over the past three years. This represents that the sales of the entity has decreased over the years and this should be taken seriously by the entity as there is decrease in sales and this resulted in the decrease in the net profit and gross profit of the entity. This is cause for concern as sales plays an impoerant role and this will affect the profitability and turnover ratio of the entity.
Question 6: Has the Net Earnings shown an increasing or decreasing trend over the past three years? Interpret this trend. Should this be a concern for the company? Why or why not?
The net earning trend of the entity is showing decreasing trend over the past three years and this reprsents that the profitability of the entity has reduced over the period of three years. This is cause of concern for the entity as decrease in profitability is not a good sign as profit earning capapcity should not decrease as compared to previous year. The decrease in profit represents inefficiency of the entity to generate good profitability from the operations of the entity.
Question 7: Compare the Net Product Sales trend and the Net Earnings trend. Are these two items trending the same? Interpret any differences and infer what those may mean in relation to the company's operating decisions over the past three years.
The net product sales and net earnings trend are having decreasing trend over the past three years. Both the items are having same trend as profitability is affected by the sales of the entity. The disruptions in the supply chain of the entity impair the ability of the entity to produce and deliver the product would result in negative impact on the operating results. Due to decrease in the revneue of the entity and increase in the cost leads to decline in the net profit of the entity.
References: (Hint! Citing a 10K and/or Annual Report: http:
asmussen.libanswers.com/faq/32821 ; APA Guide: http:
guides.rasmussen.edu/apa )
Tootsie Roll Industries Inc. (2018). 2018 Annual Report. Retrieved from http:
www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_TR_2018.pdf
Module 03
    
    Required: Complete the purple areas of the chart, and the questions in the text boxes below.
    List the years in order of most recent as year 1, next most recent as year 2, etc. Example: If
    the most recent fiscal year was 2015, then replace Year 1 with 2015, replace Year 2 with 2014,
    and replace Year 3 with 2013.
    In the References box, include an APA reference for all information retrieved, whether from the Tootsie Roll website
    itself, specific forms (i.e. 10k) from the Tootsie Roll website, or other outside sources.
    Instructions for citing a 10k or Annual Report: http:
asmussen.libanswers.com/faq/32821 For general APA help,
    visit the APA Guide: http:
guides.rasmussen.edu/apa
    Tootsie Roll Industries Inc.
    Balance Sheet    Year 1    Year 2    Year 3
    Cash and Cash Equivalents    119,145    126,145    100,108
    Investments    67,513    42,155    39,450
    Accounts...