Tootsie Roll Industries Loan Package
ACC/561
December 16, 2012
Myrtle Clark
Tootsie Roll Industries Loan Package
“Tootsie Roll Industries has grown to become one of the country’s largest candy companies, with a lineup that includes some of the world’s most popular candy, chocolate, and bubble gum brands,” (Tootsie Roll Industries, 2012, p.1). Through the creation of the tootsie roll and other products, the Tootsie Roll Industry has maintained an innovative stand within the market. Expanding production of new products and manufacturing buildings the Tootsie Roll Industry are in need of a loan that will help increase the company’s liability by 10%. To accomplish this increase an adequate loan package will help in seeking for those needed funds. The loan package will include a liquidity ratio, solvency ratio, and profitability ratio explaining how and why the loan will be beneficial to the Tootsie Roll Industry as well as showing the creditor the low level of risk that will be involved.
Table 1 In the above table, the liquidity ratios of Tootsie Roll Industries reveal that the company has $3.45 in current assets to pay for $1 of the current liabilities. In addition, the cash provided by operation activities include the whole year rather than a balance at one point.
