...In this file ACC 561 Week 3 Team Assignment Tootsie Roll Industries Inc Loan Package there is a review of the following parts: 1. Tootsie Roll Industries, Inc. Loan Package 2. A Ratio Analysis of the Financial Statements 3. Table1. Liquidity ratio table 4. Table2. Solvency ratio table 5. Table3. Profitability ratio table 6. Effects of the Loan on the Company 7. Conclusion Business - Accounting Resources: Accounting and The Successful Business Plan , and the Electronic Financial Worksheets (EFW) Excelâspreadsheet and EFW Help PDF file on the course materials page. Read the financial statement for Tootsie Roll Industries Inc. in Appendix A of Accounting and EFW Help PDF file on the course materials page. Review the 19 sections that comprise the Sample Plan in the table of contents of The Successful Business Plan , and refer to each of these specific sections within the text for further information. Conduct an Internet search information on how to assemble a loan package by researching loan package requirements at The U.S. Small Business Administration website (http://www.sba.gov/) or on other websites, such as the SCORE website (http://www.score.org/). Research the specific loan package requirements of creditors, such as American Express, by reviewing their websites. Complete theEFWspreadsheet using the Tootsie Roll financial data in Appendix A of Accounting . Be sure to: · Use only the applicable worksheets within the EFW spreadsheet; worksheets not...
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...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...
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...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...
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...Tootsie Roll Industry Financials Molly Matyka, Dalisa Santiago, Kevin Spalding, Denise Sudler, ACC/561 October 22, 2012 Karen Lascelle Loan Package for Tootsie Roll Industry In order to obtain a loan to help finance the Tootsie Roll Inc., whether it is through a banking institution or a private lender; a properly written loan package is needed to obtain the proper financing for the company’s future advancement. Each funding source is needed to be detailed to ensure the right financing is obtained and the best terms for Tootsie Roll Inc. to re-pay the loan back once it is obtained. Tootsie Roll Inc. has decided to modernize the organization and wants to improve its technology to be compatible with other business organizations. Additional capital is needed to help the company transition through this phase of growing the business as well as updating system regarding technology growth and renovations. This report contains a customized loan package detailing the financial aspects of Tootsie Roll Industry business operations, its ability to repay the loan as well as its funding and operation costs to support future expansion and growth of the business. The Need for the Loan Package In an effort to remain profitable in these economic times, it is essential for Tootsie Roll, Inc. to strive for efficiency in production. To enable this quest for maximum efficiency, an investment into the production facilities is necessary. Tootsie Roll Inc. strives...
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...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...
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...Tootsie Roll Industries Inc. Hope Benites, Daniel Hardesty, Derrick King, Muna Al Waidh ACC/561 June 25, 2012 Larry Key Tootsie Roll Industries Inc. Tootsie Roll Industries has been an American favorite for well over 100 years. “Beginning in a modest New York candy store with the Tootsie Roll's introduction in 1896, the Chicago-based company 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.” The brand is successful with a diverse group, which allowed there superb taste and style in candy assortments to reach all demographics, including all ages and origins. This appeal has led to the growth and continuous success of the brand. Looking at current times, Tootsie Roll Industries strives to stay current and competitive in an international setting, with Mexico as its biggest international partner while maintaining steady growth in the United States. Examples of this include product diversification; new flavors (sour products), shapes (mini tootsies, square tootsies, etc.), sizes, gluten free, and kosher products. Despite the financial achievements of the company in past decades, ownership is seeking financing to support new ideas to further grow the company. In the past, particularly 2006 to 2007 the company experienced an overall decline. This decline was caused...
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...|[pic] |Syllabus | | |School of Business | | |ACC/561 Version 4 | | |Accounting | Copyright © 2011, 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course applies accounting tools to make management decisions. Students learn to evaluate organizational performance from accounting information. Other topics include financial statements, cost behavior, cost allocation, budgets, and control systems. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If...
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...|[pic] |Course Design Guide | | |School of Business | | |ACC/561 Version 4 | | |Accounting | Copyright © 2011, 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course applies accounting tools to make management decisions. Students learn to evaluate organizational performance from accounting information. Other topics include financial statements, cost behavior, cost allocation, budgets, and control systems. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If...
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...Company & Tootsie Roll Company Company History Both the Hershey Company and the Tootsie Roll Company specialize in a wide variety of chocolate candy products. "The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products, with revenues of over $4 billion and more than 13,000 employees worldwide". The Hershey Company originated with the candy manufacturer Milton Hershey. In 1894 Milton Hershey wanted to design a sweet coating for his already existing caramels, thus his new enterprise, the Hershey Chocolate Company began. The Hershey Company went public on the New York Stock Exchange (NYSE) in 1922. The Tootsie Roll Industries, Inc. was established in 1896. "The round piece of chewy, chocolatey candy that delights Americans today still looks and tastes amazingly like the first Tootsie Roll, made over 109 years ago". The Tootsie Roll "still sells for one penny, the original price, even though the company now offers candy packages priced up to $6.99. The first penny candies to be individually wrapped in paper, Tootsie Rolls are protected today". The Tootsie Roll Industry produces more than 60 million Tootsie Rolls per day and is also the world's largest lollipop supplier, producing 20 million lollipops daily. The Tootsie Roll Industries, Inc. went public on the NYSE in 1927. New York Stock Exchange Company Information The Hershey Company (Hershey) and Tootsie Roll Industries...
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...c02AFurtherLookatFinancialStatements.qxd 7/27/10 9:39 AM Page 46 chapter 2 A FURTHER LOOK AT FINANCIAL STATEMENTS ● the navigator ● ● ● ● ✓ Scan Study Objectives Read Feature Story Scan Preview Read Text and Answer Do it! p. 52 p. 53 p. 62 p. 68 Work Using the Decision Toolkit Review Summary of Study Objectives Work Comprehensive Do it! p. 72 Answer Self-Test Questions Complete Assignments Go to WileyPLUS for practice and tutorials Read A Look at IFRS p. 96 study objectives After studying this chapter, you should be able to: 1 Identify the sections of a classified balance sheet. 2 Identify and compute ratios for analyzing a company’s profitability. 3 Explain the relationship between a retained earnings statement and a statement of stockholders’ equity. 4 Identify and compute ratios for analyzing a company’s liquidity and solvency using a balance sheet. 5 Use the statement of cash flows to evaluate solvency. 6 Explain the meaning of generally accepted accounting principles. 7 Discuss financial reporting concepts. ● ● ● ● ● ● ● INSIDE CHAPTER 2… 46 c02AFurtherLookatFinancialStatements.qxd 7/27/10 9:39 AM Page 47 feature story Few people could have predicted how dramatically the Internet would change the investment world. One of the most interesting results is how it has changed the way ordinary people invest their savings. More and more people are striking out on their own, making their own investment decisions. Two early pioneers...
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...C H A P T E R A Further Look at Financial Statements o STUDY OBJECTIVES 2 T H E N AV I G AT O R I I I I Scan Study Objectives Read Feature Story Read Preview Read text and answer Before You Go On p. 58 p. 63 p. 69 p. 72 p. 75 Work Using the Decision Toolkit Review Summary of Study Objectives Work Demonstration Problem Answer Self-Study Questions Complete Assignments I I I I After studying this chapter, you should be able to: 1 meaning N Explain the principlesof generally accepted accounting and describe the I basic objective of financial reporting. F E AT U R E S T O R Y 2 qualitative N Discuss theinformation.characteristics of accounting 3 N Identify two constraints in accounting. 4 N Identify the sections of a classified balance sheet. 5 compute ratios N Identify andprofitability. for analyzing a company’s 6 N Explain the relationship between a retained earnings statement and a statement of JUST FOOLING AROUND? Few people could have predicted how dramatically the Internet would change the investment world. One of the most interesting results is how it has changed the way ordinary people invest their savings. More and more people are spurning investment professionals and instead are striking out on their own, making their own investment decisions. Two early pioneers in providing investment information to the masses were Tom and David Gardner, brothers who created an online investor bulletin board called the Motley Fool. The name comes...
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...CHAPTER 4 Accrual Accounting Concepts Study Objectives 1. Explain the revenue recognition principle and the matching principle. 2. Differentiate between the cash basis and the accrual basis of accounting. 3. Explain why adjusting entries are needed, and identify the major types of adjusting entries. 4. Prepare adjusting entries for deferrals. 5. Prepare adjusting entries for accruals. 6. Describe the nature and purpose of the adjusted trial balance. 7. Explain the purpose of closing entries. 8. Describe the required steps in the accounting cycle. 9. Understand the causes of differences between net income and cash provided by operating activities. 10. Describe the purpose and the basic form of a worksheet. Summary of Questions by Study Objectives and Bloom’s Taxonomy |Item | | 1. | | 1. | | 1. | | 1. ...
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...Accrual Accounting Concepts The Navigator • Scan Study Objectives • Read Feature Story • Read Preview • Read text and answer Before You Go On p. 169 p. 174 p. 183 • Work Using the Decision Toolkit • Review Summary of Study Objectives • Work Demonstration Problem • Answer Self-Study Questions • Complete Assignments Feature Story What Was Your Profit? The accuracy of the financial reporting system depends on answers to a few fundamental questions. At what point has revenue been earned? At what point is the earnings process complete? When have expenses really been incurred? During the 1990s' boom in the stock prices of dot-com companies, many dot-com companies earned most of their revenue from selling advertising space on their Web sites. To boost reported revenue, some dot-coms began swapping web-site ad space. Company A would put an ad for its website on company B's website, and company B would put an ad for its website on company A's website. No money ever changed hands, but each company recorded revenue (for the value of the space that it gave up on its site). This practice did little to boost net income and resulted in no additional cash flow—but it did boost reported revenue. Regulators eventually put an end to the practice. Another type of transgression results from companies recording revenue or expenses in the wrong year. In fact, shifting revenues and expenses is one of the most common abuses of financial accounting. Xerox recently...
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...strategic plans. Pagani had worked hard to make Arcor a dominant player in the Latin American confectionery market and had recently laid out plans to increase its presence in other regions. By 1999, he was ready to implement his strategy and was eager to work toward competing on the level of other multinational manufacturers, such as Mars, Nestlé, Kraft, Hershey, and Cadbury Schweppes. However, Arcor’s response to the domestic crisis had drained his focus and resources and forced him to put all expansion efforts on pause. Surveying the ruin around him and looking at the business his family had built up over three generations, Pagani thought hard about what to do with Arcor, both at home and abroad. The Confectionery Industry The confectionery industry comprised sugar confectionery (candy) and chocolate...
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...thomas a . meyer How Great companies Get Started in terrible times Innovate! Innovate! How Great Companies Get Started in Terrible Times THOMAS A. MEYER John Wiley & Sons, Inc. Copyright © 2010 by Thomas A. Meyer. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose...
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