...Tootsie Roll Industries Inc. Loan Request Patricia Duncan, Sean Duncan, Heidi Oppegard, and Michelle Rodriguez Accounting ACC/561 January 7, 2012 Jared Jones Tootsie Roll Industries Inc. Loan Request Tootsie Roll Industries is a confectionery products manufacturer that has been in business for 111 years. The company makes a variety of products including a) Tootsie Roll, b) Tootsie Roll Pops, c) Caramel Apple Pops, d) Charms, e) Blow Pops and a number of other sweet treats. The company believes in hiring and retaining quality personnel while maintaining a professional yet open family atmosphere. Tootsie Roll Industries is looking to expand the business; therefore, the business is requesting a loan to successfully implement the expansion. Discussed below is detailed information regarding Tootsie Roll Industries current financial position, how Tootsie Roll Industries plans to implement the funds from the loan, and how the funds will promote future company growth. Financial Statement Summary….Michelle (~375 words) (due Jan 7th) A General financial statement summary is important when requesting a loan for expansion or any other reason like inventory purchases or debt retirement. The Tootsie Roll Company has four important financial statements that reflect important information in order to obtain their loan. Ahead I will explain the details relevant to the Tootsie Roll Company in relation to their revenues, retained...
Words: 796 - Pages: 4
...Hershey’s Company and Tootsie Roll Industries are both makers of confectionary products, mainly chocolate and other candies. Both companies have been making these products since the early to middle 1890’s and market their products worldwide. Hershey’s is the larger company of the two. To show perspective of how much larger Hershey’s is, they had a net sale of over 5 billion dollars in 2008. Tootsie Roll’s net sales in 2008 were $492 million. However, I will be looking at and comparing their financial data from 2002 to 2004 to each other and to the 2004 industry average. Accounting ratios I will be looking at include liquidity ratios, solvency ratios, and profitability ratios. Liquidity ratios show the ability of a company to pay back their short-term obligations. A few examples of these ratios are the current ratio, current cash debt coverage ratio, accounts receivable turnover ratio, average collection period, inventory turnover ratio, and days in inventory. Starting with the current ratio, I found that Hershey’s Co. did quite well in 2002 and 2003 but fell sharply in 2004. This was due to a large increase in liabilities in 2004 compared to the other years. The industry average for 2004 was .90 and their current ratio that year was .92 so they are just slightly above it. Tootsie Roll fared much better in all 3 years with its current ratio never going below 2.34. Companies with ratios over 2.0 are considered to be very stable in their short-term financial standing. Another good...
Words: 958 - Pages: 4
...target market, Tootsie Roll Industries must have an understanding of their customer’s demographic traits and a defined market size included in the business plan. The company states that its brands resonate strongly among every age group, culture, and demographic; for every occasion and event (Tootsie Roll Industries, Inc., 2013). To further provide a visual for their targeted market, Tootsie has a picture on their website of a child who is excitedly holding an unopened bag of delicious candy ready to be eaten. As the company plans on continued expansion, the targeted market must include a broader demographic of people. The company must first understand the buying patterns of the targeted market. This includes if the product appeals to customers more at a certain time of the year, how affordable the product is, where the customer first heard of the product, and the customer’s motivation for continued purchases. According to Abrams, R. (2003), “When assessing the size of the market, you will find demographic and geographic information easiest to locate. Much of this data is available from U.S. Census Bureau reports, local governmental agencies, real estate brokerages, chambers of commerce, and business directories.” With a reachable and definable target market, Tootsie will continue to expand its customer base as well as the company itself. Competition Benchmarking, analysis of internal operations, and predicting future competition are all strategic steps that Tootsie Roll Industries...
Words: 799 - Pages: 4
...Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale confectionery products since 1896 when Austrian-born Leo Hirshfield opened a tiny candy shop in New York City. Hirshfield handcrafted a variety of products, including an individually wrapped, oblong, chewy, chocolate candy that quickly became a customer favorite. The hand wrapping – believed to be an industry first – enabled Hirshfield’s product to stand out among the competitor’s candy-counter offerings, which were sold by the scoop from jars (St. James Press, 1996). Sold at a penny apiece and affectionately named after Hirshfield’s five-year old daughter, Clara, whose nickname was “Tootsie,” Tootsie Rolls propelled Hirshfield’s modest corner store into burgeoning candy enterprise that has evolved in little more than a century into the multinational corporation, Tootsie Roll Industries. The Tootsie Roll Industry main head quarter and production plant is located in Chicago, Illinois. Its operations are also in Illinois; Massachusetts; Tennessee; Wisconsin; Mexico City, Mexico; and Concord, Ontario. Today they employee around 2200 employees. The company’s website is www.tootsie.com. Its three top competitors are listed as The Hershey Company (Ticker Symbol HSY), Nestle S.A. (shares are traded at SIX Swiss Exchange symbol NESN.VX (Nestle , 2011), and Mars Inc (privately held company). The board of Directors has appointed PricewaterhouseCoopers LLC as the independent registered public accounting firm for...
Words: 4213 - Pages: 17
...Tootsie Roll Charles M Mobley University of Phoenix Tootsie Roll Tootsie Roll Industries is a world leading candy company. The company began during 1896 in New York City ("Company Information," 2011). Leo Hirshfield began crafting the confections at his local shop. The delicious candy sold for one penny. The Tootsie Roll launched Hirshfield’s modest shop into a multinational corporation. The company headquartered in Chicago produces 62 million Tootsie Roll candies daily ("Company Information," 2011). The company has grown to include some of the world’s favorite candies. Tootsie Brand candies include the Tootsie Pop, Charms Blow Pop, Sugar Daddy, Dubble Bubble, and Junior Mints. The company has 22 candy brands ("Company Information," 2011). Tootsie Roll has annual sales of nearly 500 million dollars ("Company Information," 2011). The company is one of the leading candy producers in the world. Tootsie Roll Industries believes a family culture and progressive management will produce a leading company within the candy industry. Forbes Magazine has recognized the company as one of “Americas 200 Best Small Companies.” Business Ethics Magazine calls Tootsie Roll Industries on of the “100 Best Corporate Citizens” ("Company Information," 2011). The company’s commitment to ethics and integrity carries over into communities and national interests. Tootsie Rolls’ are a part of the U.S. militaries rations. Tootsie Roll Industries product sales in 2007 were 493 million...
Words: 535 - Pages: 3
...Taffy is a soft, chewy, sweet candy. The texture of taffy is very similar to the texture of the inner part of a tootsie pop. Both textures are described as creamy, sticky, and stretchy. As well as having texture in common, these sweet treats both come in various flavors. Some taffy and tootsie pop come in the same flavors. Some of these flavors include chocolate, cherry, caramel, and strawberry. The consumption method for eating taffy is not compatible with the method of a tootsie pop. A tootsie pop has a stick for the consumer to hold onto. Taffy must be consumed by popping the candy out of the wax paper and into the consumer’s mouth. Although they have their differences, each sweet treat will leave you wanting more. Dum-Dum suckers are a hard, sweet, flavorful brand of...
Words: 720 - Pages: 3
...Overview Tootsie Roll Industries, Inc. is America's most favorite candy company, manufacturing and selling some of the world's most popular confectionary brands. It started in a modest New York candy store with the Tootsie Roll's introduction in 1896. The company is based in Chicago Illinois. It has grown to become one of the country's largest candy companies, with operations throughout North America and with distribution channels in more than 75 countries. Tootsie Roll Industries, Inc. engages in the manufacture and sale of confectionery products primarily in the United States and Mexico. It primarily offers candy products. The company offers its products under the TOOTSIE ROLL, TOOTSIE ROLL POPS, CHILD’S PLAY, CARAMEL APPLE POPS, CHARMS, BLOW-POP, BLUE RAZZ, CHARMS MINI POPS, CELLA’S, MASON DOTS, MASON CROWS, JUNIOR MINTS, CHARLESTON CHEW, SUGAR DADDY, SUGAR BABIES, ANDES, FLUFFY STUFF, DUBBLE BUBBLE, RAZZLES, CRY BABY, and NIK-L-NIP trademarks. Tootsie Roll Industries, Inc. distributes its products through candy and grocery brokers to wholesale distributors of candy and groceries; supermarkets; variety stores; dollar stores; chain grocers; drug chains; discount chains; cooperative grocery associations; warehouse and membership club stores; vending machine operators; the United States military; and fund-raising charitable organizations. The company also exports its products to Canada and internationally. With annual sales approaching nearly half-a-billion dollars, Tootsie Roll...
Words: 298 - Pages: 2
...flavor of a tootsie pop” has been a popular phrase for years, a commercial jingle that reminds every one of the wonderful taste, a memory from childhood that brings people from miles around to local candy stores seeking Tootsie rolls, whether it is a lollipop or a tootsie roll chocolate, everyone one is familiar. Tootsie Roll Industries is a world leading Candy Company. The company began during 1896 in New York City ("Old Time Candy," 2014). Leo Hirshfield began crafting the confections at his local shop. The delicious candy sold for one penny. The Tootsie Roll launched Hirshfield’s modest shop into a multinational corporation. The company headquartered in Chicago produces 62 million Tootsie Roll candies daily ("Old Time Candy," 2014). The company has grown to include some of the world’s favorite candies. Tootsie Brand candies include the Tootsie Pop, Charms Blow Pop, Sugar Daddy, Dubble Bubble, and Junior Mints. The company has 22 candy brands ("Old Time Candy," 2014). Tootsie Roll has annual sales of nearly 500 million dollars ("Old Time Candy," 2014). The company is one of the leading candy producers in the world. There are numerous processes that contribute to the success of the company. An essential process for the company is the actual production of its staple candy the Tootsie Pop. The Process One way to categorize the process of the company is to whether it is a single stage process or a multiple stage process. The Tootsie Roll Company has...
Words: 896 - Pages: 4
...Proceeds and Affects from the Loan The Tootsie Roll Industries, Inc. has chosen to allocate the funds from the loan to critical departments that will contribute to the growth of the company. The loan will permit Tootsie Roll to acquire new updated equipment for better production such as robotics to increase productivity. The allocation of these funds will open up research, and development, to produce healthier and cheaper ingredients for products. However, acquiring new robotic production machines or equipment will require a decrease in manpower, wages, and salaries. Approval of the loan will positively affect Tootsie Roll by the way products are manufactured and distributed. The loan acquisition will increase the productivity of the company because of the acquisition of new assets to benefit production. Through the downturn in the economy, Tootsie Roll Industries, Inc. has adjusted product prices or package weights to offset the higher costs (Kimmel, Weygandt, & Kieso, 2011). During the first quarter of 2009, the Tootsie Roll Industries, Inc. adopted the authoritative guidance for disclosures about hedging activities derivative instruments. It requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of derivative instruments, and related gains and losses (Kimmel, Weygandt, & Kieso, 2011). It also required disclosures about related credit-risk features in derivative agreements (Kimmel...
Words: 302 - Pages: 2
...the sign next to me. Tootsie Roll Industries Company. What does that mean? In inhaled. The sensational smell of fruit and chocolate overwhelmed me. I seem to stretch for miles and miles. However, I was only three inches thick! Being stretched on the conveyer belt is relaxing, taking in the sights, smells, and noises. Although the Tootsie Roll Industries Company factory is musty, gray, and dirty, it is also very beautiful. There are endless rows of conveyor belts with other lollipops on it. Who cares about those pops? I’m about to turn into a Tootsie Pop! I inhaled again. Caramel! I thought. That must be my flavor! Down and down the conveyer belt, an endless line of machinery. I can see a turn...
Words: 772 - Pages: 4
...Three Case Study Questions Trina G. Stevens trinagstevens@bellsouth.net Part III of the Course Project for PM598 Nov10 Contract and Project Management Presented to Instructor Robert Davy of DeVry University December 5, 2010 RUHLING MANUFACTURING COMPANY QUESTIONS Question # 1: Why might negotiation be favored over competitive bidding in certain procurement situations? A buyer or a procurement section of an organization, or business might choose negotiation over competitive bidding when a project is small, not planned, or an emergency. There are some situations in which a buyer would favor negotiation rather than competitive bidding. For example, when the buyer is contracting for part of the seller’s services rather than a product. Also when there are ambiguities involved with the project. Another reason to use negotiation is when cost and risk cannot be correctly identified early within the project. Negotiation is used a lot when there are new, or unexpected ideas introduced to solve a problem within the project. Negotiation is usually cheaper and quicker than competitive bidding. Question # 2a: Considerations of Epsilon's alternative proposal: a. What is the applicability of a requirements contract from Ruhling’s point of view? - Assume that Epsilon will still make a profit resulting from economics of long runs and learning curves The applicability of a requirement contract from Ruhling’s point of view is that they would agree...
Words: 1949 - Pages: 8
...Finance: Managerial Use & Analysis Project: -Ratio Analysis Group Project by Analysis Report In comparing Hershey’s and Tootsie Rolls Company with respect to Liquidity, Solvency and profitability, we will use data from the financial statements of both the company of the year end December 31st 2008. Among all the three ratios provided in the data sheet i.e. Liquidity, Solvency and Profitability, to invest in a company I will choose to see the profitability ratio of a company. According to 2008 financial statements of both the company and looking at the ratios I will choose Tootsie Rolls Corporation. I will invest in Tootsie Rolls Corporation I would like to answer the question, why did I select Tootsie Rolls Corporation and not Hershey Corporation. As you know and I know Hershey is a big company and over the year this company has proven its investors and creditors that its one of the big companies all over the world. Big don’t means better? Even a medium size company like Tootsie Rolls generate a good amount of money not in million but in thousands. So what it has a good return ratio? Yes. Liquidity Ratio Analysis: - What does Liquidity Ratios mean? A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Comparing Tootsie Rolls and Hershey Corporation for...
Words: 1082 - Pages: 5
...Tootsie Roll Industries, Inc.: Loan Package Tootsie Roll Industries, Inc.: Loan Package Tootsie Roll Industries is applying for a loan package that will help them achieve superior things. There are many opportunities that can be accomplished by allocating money to different areas. The different areas include healthier ingredients, expansion, and advertising. These areas will increase the production and success of the Tootsie Roll Industries, Inc. Within this loan package, there are many exciting things that will improve and perfect healthier candies at Tootsie Roll Industries all over the world. Strategic Applications With the proceeds from the loan, the plan that Tootsie Roll will use the loan to improve the research and development team to develop healthy ingredients for the candy bars that is already on the market. Tootsie Roll will expand its production to overseas areas and to the newer markets by hiring staff, installing new machines, and constructing new facilities to produce the company’s candies. They will also expand they advertisement business, by using, and enhancing their existing websites, to include Facebook and Twitter. By using the network, Tootsie Roll with be able to reach new customers looking for healthier snacks. “Tootsie Roll will also use the proceeds to expand their overseas operations, to include bilingual areas that will serve the bilingual customers of every nationality it serves”. (Keeling, 2012, p...
Words: 1292 - Pages: 6
...Bushra Accounting 153 Term Paper I. Tootsie Roll Company Overview • Tootsie Roll is one of the largest candy companies within our country • Their confectionary products are distributed to over 75 countries worldwide • Their largest customer is Walmart; their market mainly consists of retailers and candy distributors • Tootsie Roll employs about 2,200 people II. Liquidity Ratios • Working Capital Year Tootsie Roll Hershey 2011 $153,846 $872,783 2010 $176,662 $706,372 2009 $155,812 $474,806 2008 $129,967 $74,733 • Current Ratio Year Tootsie Roll Hershey 2011 3.64:1 1.74:1 The industry average is 2010 4.02:1 1.54:1 1.50:1 2009 3.78:1 1.52:1 2008 3.22:1 1.06:1 Both Tootsie Roll and Hershey have good liquidity ratios. Tootsie Roll’s working capital shows that the company should be able to pay off its’ liabilities or debts. Tootsie Roll is performing at above the industry average, which shows that the company has great liquidity. Based on the liquidity ratios, I would lend Tootsie Roll the $10 million short term note III. Solvency Ratios • Debt to Total Assets Ratio Year Tootsie Roll Hershey 2011 22% 80% The industry average is 57% 2010 22% 78% 2009 22% 79% 2008 22% 90% 2007 21% 85% Tootsie Roll has been consistent within the last couple years. Compared to Hershey, Tootsie Roll has great solvency. Tootsie Roll should not have a problem with future debts...
Words: 598 - Pages: 3
...Tootsie Roll Industries Inc. Loan Package ACC/561 - Accounting August 15, 2011 Tootsie Roll Industries Inc. Loan Package Since the company’s establishment in 1896, Tootsie Roll Industries Inc. has expanded to become one of the biggest candy companies in the United States. Tootsie Roll Industries Inc. is one of America’s most recognized candy companies through manufacturing and selling some of the most popular candies in the world. The company has an extensive amount of products sold in many venues including grocery stores, vending machines, and drugstores. Tootsie Roll Industries Inc. applies innovation consistently by developing new forms of presentation and creating more options for the consumer. In the first quarter of 2011 the company increased sales effectively through improved marketing processes but the increased costs of ingredients, freight, energy, and other factors lowered the net earnings to $8,000,000 compared to $9,204,000 in 2010. Tootsie Roll Industries Inc. is currently seeking beneficial opportunities to improve the net earnings and shareholder value of the organization. The company is completing a loan package by determining its current financial situation through ratio analysis of its financial statements. The goal is to secure a loan for the company to fund $2.5 million to improve the business. The company will explain how the proceeds from the loan will be used to enhance business operations and how the loan approval will affect the company...
Words: 297 - Pages: 2
