Module 02 Written Assignment – The Income StatementReview the account balances of Ma and Pa Grocery...

Question

Module 02 Written Assignment – The Income Statement
Review the account balances of Ma and Pa Grocery as of December 31, 20##, in the Excel Template.
Requirements:
1. Prepare the Income Statement for the period ending December 31, 20##.
2. Calculate the gross profit % for the year.
Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.
Save your assignment as a Microsoft Excel document. (Mac users, please remember to append the ".xlsx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:
Jstudent_exampleproblem_1015
Module 02 Written Assignment
–

The Income Statement

Review the account balances of Ma and Pa Grocery as of December 31, 20##, in the
Excel
Template
.
Requirements:

1.

Prepare the Income Statement for the period ending December 31, 20##.

2.

Calcula
te the gross profit % for the year.

Submit your completed assignment by following the directions linked below. Please check
the

Course Calenda

for specific due dates.

Save your assignment as a Microsoft Excel document. (Mac users, please remember to appen
d
the ".xlsx" extension to the filename.) The name of the file should be your first initial and last
name, followed by an underscore and the name of the assignment, and an underscore and the
date. An example is shown below:

Jstudent_exampleproblem_1015
Module 02 Written Assignment – The Income Statement
Review the account balances of Ma and Pa Grocery as of December 31, 20##, in the Excel
Template.
Requirements:
1. Prepare the Income Statement for the period ending December 31, 20##.
2. Calculate the gross profit % for the year.
Submit your completed assignment by following the directions linked below. Please check
the Course Calendar for specific due dates.
Save your assignment as a Microsoft Excel document. (Mac users, please remember to append
the ".xlsx" extension to the filename.) The name of the file should be your first initial and last
name, followed by an underscore and the name of the assignment, and an underscore and the
date. An example is shown below:
Jstudent_exampleproblem_1015

Module 02 Course Project - Tootsie Roll Industries Inc. Income Statement
Locate Tootsie Roll Industries Inc.'s most cu
ent SEC Form 10-K Annual Filing in the Tootsie Roll Industries Annual Report. Focus on the income statement, which Tootsie Roll Industries Inc.'s titles Consolidated Statement of Earnings and Retained Earnings, and the notes following the financial statements.
Complete the required income statement items and address the questions located in the Course Project Workbook.
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
Need help? Click here to work with a professional Accounting tutor in Live Help. See our Answer FAQ on the difference between Live Help and Tutor Match.
Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.
Save your assignment as a Microsoft Excel document. (Mac users, please remember to append the ".xlsx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:
Jstudent_exampleproblem_101504
Need Help? Click here for complete drop box instructions.
Module 02 Course Pro
ject
-

Tootsie Roll Industries Inc. Income Statement

Locate Tootsie Roll Industries Inc.'s most cu
ent SEC Form 10
-
K Annual Filing in the Tootsie
Roll Industries Annual Report. Focus on the income statement, which Tootsie Roll Industries
Inc.'s titles
Con
solidated Statement of Earnings and Retained Earnings
, and the notes following
the financial statements.

Complete the required income statement items and address the questions located in the
Course
Project Workbook
.

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

Need help?
Click here

to work with a professional Accounting tutor in Live Help. See our
Answer FAQ

on the difference between Live Help and Tutor Match.
Submit your completed assignment by following the directions linked below. Please check
the

Course Calenda

for specific due dates.

Save your assignment
as a Microsoft Excel document. (Mac users, please remember to append
the ".xlsx" extension to the filename.) The name of the file should be your first initial and last
name, followed by an underscore and the name of the assignment, and an underscore and th
e
date. An example is shown below:

Jstudent_exampleproblem_101504

Need Help? Click here for complete drop box instructions.
Module 02 Course Project - Tootsie Roll Industries Inc. Income Statement
Locate Tootsie Roll Industries Inc.'s most cu
ent SEC Form 10-K Annual Filing in the Tootsie
Roll Industries Annual Report. Focus on the income statement, which Tootsie Roll Industries
Inc.'s titles Consolidated Statement of Earnings and Retained Earnings, and the notes following
the financial statements.
Complete the required income statement items and address the questions located in the Course
Project Workbook.
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
Need help? Click here to work with a professional Accounting tutor in Live Help. See our
Answer FAQ on the difference between Live Help and Tutor Match.

Submit your completed assignment by following the directions linked below. Please check
the Course Calendar for specific due dates.
Save your assignment as a Microsoft Excel document. (Mac users, please remember to append
the ".xlsx" extension to the filename.) The name of the file should be your first initial and last
name, followed by an underscore and the name of the assignment, and an underscore and the
date. An example is shown below:
Jstudent_exampleproblem_101504
Need Help? Click here for complete drop box instructions.

module-2-assignment-a34sn1zc.docx assignmentmod02-o5y3r2sy.xlsx module-2-course-project-5pkcsodf.docx courseprojectworkbook-jqy4y1ew.xlsx

Khushboo · Accepted Answer

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://rasmussen.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 current 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 current 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.

Module 02 Written Assignment – The Income Statement Review the account balances of Ma and Pa Grocery as of December 31, 20##, in the Excel Template. Requirements: 1. Prepare the Income Statement for...

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