Rasmussen College Financial Accounting Tootsie Rolls Annual Report Audit Case Study In the last module, you collected financial statement numbers for a com

Rasmussen College Financial Accounting Tootsie Rolls Annual Report Audit Case Study In the last module, you collected financial statement numbers for a company you are researching. Your audience for this project is an investment board looking for a recommendation concerning investment in the company. You will research the company and determine if this is a good or poor investment and support your decision through analysis.

Before investing in a company, the investor needs to know about the company. You will be making a short presentation to the investment board, introducing the company and explaining the purpose of the auditor’s report in an annual report.

In preparation, read about the annual report and investing (see Additional Materials section for assistance).
Using information from the company annual report, create a 5-10 slide PowerPoint presentation to the investment board. Include the following:
A brief history, company values, company goals, product lines, competitors and industry challenges.
What management says about past performance and future projections (use the Management Discussion and Analysis, or MD&A, section)
Summarize company risks.
Summarize what the “notes” state about depreciation, inventory and revenue recognition
Summarize from the Auditor report:
To whom is the letter addressed?
For what is management responsible?
For what is the auditor responsible?
What policies & procedures does the company’s internal control over financial reporting include?
Does the auditor give the company a qualified or unqualified opinion?
Who is the auditing firm?
Professional Code of Conduct. As an accountant, you want the investment board to trust and have confidence in the information you are presenting. On the last slide, present your own professional code of conduct.
What is your commitment to professional conduct and ethics in the accounting profession? Identify and explain five distinct practices to demonstrate your commitment.

Use PowerPoint best practices and include a reference slide (see Additional Materials section for assistance).

This research assignment will help you to prepare the report and the financial analysis spreadsheets that comprise your final project.

Additional Materials
For assistance in creating a PowerPoint presentation, visit PowerPoint Presentations
For assistance in locating information about various businesses, please visit Finding Company & Industry Information
For assistance reading an annual report, please visit:
Annual Report
How To Efficiently Read An Annual Report
For assistance on management discuss and analysis, please visit Management Discussion and Analysis – MD&A
For assistance reading an auditor’s report, please visit Auditor’s Report

https://tootsie.com/financials/ Complete blue highlighted areas for week 2.
1.
2.
Download the company annual report or bookmark the company information for use this week and in later weeks.
Use the numbers on the company income statement and balance sheet to complete all blue highlighted areas. Use the three most current years.
Your numbers will automatically transfer to the Module 04 Course Project page to be used in week 4.
Tootsie Roll Industries, Inc.
Income Statement (Earnings & Retained Earnings)
Total Revenue
Total Costs (of goods sold)
Total Gross Margin
Selling, marketing & administrative expenses
Earnings from Operations
Interest Expense
Provision for Income Taxes
Net Earnings (after tax)
2019
2018
2017
527,113
330,097
197,016
127,802
69,214
220
20,565
64,839
518,920
330,747
188,173
117,691
70,482
181
16,401
56,805
519,289
327,383
191,906
121,484
70,422
144
3,907
80,654
Balance Sheet (Financial Position)
Cash/cash equivalents (cash)
Investments (short term)
Net Accounts Receivable (Trade)
138,960
100,444
45,044
110,899
75,140
49,777
96,314
41,606
67,513
Inventory (Raw materials/supplies+ Finished goods &
Work-in-process)
Total Current Assets
Net Property, Plant and Equipment
Total Assets
Total Current Liabilities
Total Noncurrent Liabilities
Total Liabilities (current+non current)
Total Equity
Total liabilities + Stockholders Equity
59088
353,330
178,972
977,864
79,544
138,671
218,215
759,649
977,864
54494
304,046
180,905
947,361
61,391
135,473
196,864
750,497
947,361
54827
270,920
188,455
930,946
63,788
133,354
197,142
733,804
930,946
Other Information
Stock Price at end of year
Dividends paid Common shareholder
Outstanding Shares Common Stock
Basic EPS (Earnings Per Share)
Auditing Firm
36.93
0.36
65474
0.99
Grant Thornton LLP
The company’s recent data shows that the company is on the verge of rising and becoming a bigger company. This is shown in the continuous growth of the company
decision because the company guarantees returns. I would recommend investing in the company based on these factors.
• Between the years 2018 and 2019, the company’s revenues grew meaning the company is continuously growing. The growth in revenues was accompanied by a red
• The gross margin of the company has remained to be positive over the period showing that the company is making profits from its operations.
• Over the period, the company has grown its assets continuously meaning that the company is stable.
• The price of the stock of the company at the end of the year 2019 is relatively higher than the previous years meaning that the company is growing.
• The current ratio of the company is relatively higher showing that the company is able to pay its debt.
• The recommended acid test ratio is 1:1 or higher. The company meets this threshold meaning that it is able to pay its immediate liabilities.
• The recommended debt ratio should be 0.4 or lower. The company’s ratio falls under this category meaning that the company’s assets are not entirely financed by
• The gross profit ratio of the company has increased over the period.
It is therefore wise to invest in this company
References
Tootsie. (2020). Tootsie Roll Inc. Retrieved 22 April 2020, from https://tootsie.com/financials/
wn in the continuous growth of the company. Investment in the company is a wise
.
rowth in revenues was accompanied by a reduction in the costs of goods.
fits from its operations.
that the company is growing.
mmediate liabilities.
ompany’s assets are not entirely financed by debt.
Complete highlighted areas for week 4.
1.
2.
3.
4.
5.
Make any changes your instructor has suggested from your Module 2 work.
Complete the vertical calculations for two years, using Excel formulas.
Complete the horizontal calculations using current and previous years, using Excel formulas.
Complete the company financial ratios using Excel formulas.
Locate and record competitor ratios.
Tootsie Roll Industries, Inc.
Income Statement (Earnings & Retained Earnings)
Total Revenue
Total Costs (of goods sold)
Total Gross Margin
Selling, marketing & administrative expenses
Earnings from Operations
Interest Expense
Provision for Income Taxes
Net Earnings (after tax)
Balance Sheet (Financial Position)
Cash/cash equivalents (cash)
Investments (short term)
Net Accounts Receivable (Trade)
Inventory (Raw materials/supplies+ Finished goods & Work-inprocess)
Total Current Assets
Net Property, Plant and Equipment
Total Assets
Total Current Liabilities
Total Noncurrent Liabilities
Total Liabilities (current+non current)
Total Equity
2019
2018
527113
330097
197,016
127802
69214
220
20565
64839
0
0
138960
100444
45044
518920
330747
188173
117691
70482
181
16401
56805
0
0
110899
75140
49777
59088
353330
178972
977864
79544
138671
218215
759649
54494
304046
180905
947361
61391
135473
196864
750497
Total liabilities + Stockholders Equity
977864
Other Information
Stock Price at end of year
Dividends paid Common shareholder
Outstanding Shares Common Stock
Basic EPS (Earnings Per Share)
Auditing Firm
36.93
0.36
65474
0.99
947361
Grant Thornton LLP
Tootsie Roll Industries Inc.
Ratio for TR*
Type in Formula
2019
Liquidity Ratios
Current Ratio
Acid Test Ratio
current assets/current liabilities
cash+account
receivables+shorterm
investments/current liabilities
4.441944081
3.575983104
Asset Management
Accounts Receivable Turnover
Inventory Turnover
net credit sales/ average
accounts receivable
average costs of goods
sold/averge inventory
5.586531952
Solvency Ratios
Debt Ratio
Times Interest Earned Ratio
total liabilities/total assets
income before income
tax/interest expense
0.223154754
Gross Margin/Total Revenue
0.373764259
314.6090909
Profitability Ratios
Gross Profit Margin Ratio
Profit Margin Ratio
EPS **
Net income
Earnings/Total
net
of the Revenue
company/average outstanding
0.12300778
0.990301494
Market Analysis
Price Earning Ratio**
Dividend Yield**
market price per equity per share
/annual
earnings
per share
dividend/current
share
price *100
37.29167353
*Calculated by Author
** Located through Research
2017
Vertical Analysis
2019
Vertical Analysis
2018
Horizontal Analysis
change 2018 to 2019
519289
327383
191906
121484
70422
144
3907
80654
0
0
96314
41606
67513
100
62.62357407
0.373764259
24.24565511
13.13077082
0.041736781
3.901440488
12.30077801
100
0.637375703
0.362624297
22.67998921
13.58244045
0.034880136
3.16060279
10.94677407
1.578856086
-0.196524836
4.699398957
8.591141209
-1.79904089
21.54696133
25.38869581
14.1431212
14.21056507
10.27177603
4.606366529
11.70609725
7.931506575
5.254280047
25.30320382
33.67580516
-9.508407497
54827
270920
188455
930946
63788
133354
197142
733804
6.042558065
36.13283647
18.30234061
100
8.134464506
14.18101086
22.31547536
77.68452464
5.752189503
32.09399585
19.09567736
100
6.480211873
14.30003979
20.78025167
79.21974833
8.430285903
16.20938937
-1.068516625
3.219786333
29.56948087
2.360617983
10.84555836
1.219458572
930946
Ratio for TR*
100
Type in Competitor
2018
2017
4.952615204
4.24719383
3.84121451
3.220558726
6.069420487
5.971200321
0.207802517
0.211765237
389.4033149
489.0416667
0.362624297
0.369555296
100
3.219786333
0.109467741
0.867596298
0.155316211
1.231847756
42.56588012
29.97935403

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