Department_of_Information_Systems_School_of_Business

Department of Information Systems, School of Business Administration, College of Business and Public Affairs, Morehead State University

Exam 1 Hints CIS 211 Software Tools for Business (Spring 2015)

1. _______________ is an electronic device that processes data. 2. ____________________ has logical processes embedded into it so that software programs can utilize them. It is like a brain in a human body. 3. A computer processes data as a series of one of two states, on or off. For human beings to be able to easily understand, the states are represented as either 0 for off or 1 for on. Each of these, 0 or 1, is called a ________________. 4. Which of the following is not true about a byte? 5. After the CPU processes data, the data are sent to other devices such as output devices or storage devices. In this sense, storage devices sometimes are considered output devices. Output devices are different from storage devices, however, because _____________________. 6. Permanent storage devices are _____________________. 7. Temporary storage devices are ____________________________________. 8. Random access memory is _____________________________________________. 9. A flash memory jump drive is ___________________. 10. When you turn on a computer, ________________________________. 11. Which of the following is not true about read-only memory (ROM)? 12. An operating system is ___________________________. 13. Which of the following is not true about a software driver? 14. If you need to handle text data as they are represented (i.e., code), which of the following is the best program? 15. Which of the following is not true about Notepad? 16. If you need to create clean Web pages, which of the following is the best choice?

17. If you need to create a text document with some graphics and format it for printing, which of the following is the best choice? 18. If you need to create fliers that includes graphics and text, which of the following would be the best choice? 19. Microsoft Access __________________________________. 20. Tables in Microsoft Access are ______________________________. 21. The programming tool to process data in a relational database management system is __________________. 22. You have created two tables in Microsoft Access (EMP and DEPT) and used queries to insert data into the tables. You also used another query to list all the data from the two tables, run the query to get a result set, and saved the query as Employees. You then exited the program after you had saved the Access file as test.accdb. What are included in the file, test.accdb? 23. In a table of Microsoft Access, ____________________ data are stored. 24. If you need to store large amount of data in storage devices, which of the following is the best choice? 25. Which of the following is not true about Microsoft Access? 26. A relation in a database management system is ______________________. 27. Structured query language is ________________________. 28. Microsoft PowerPoint is _______________________________. 29. If you need to create electronic slides for your presentation, which of the following is the best choice? 30. A Web browser such as Firefox is _______________________________. 31. Microsoft Excel is ____________________________. 32. Which of the following is not true about Microsoft Excel 2013? 33. What type of data does a cell in Microsoft Excel handle?

34. Which of the following is true about Microsoft Excel? 35. A cell in an electronic spreadsheet program is identified with its address. A cell in row 12 and column F is presented as _______________. 36. Which of the following data types is the most important in an electronic spreadsheet program? 37. Text data in an electronic spreadsheet program is used mostly for ___________________________. 38. What is the formula to calculate the sum of the numbers in the following cells of Microsoft Excel? A B C D 1 2 12 3 33 4 53 5 6 7 8 39. Cell E23 of a worksheet in Microsoft Excel includes a formula, =B12*D2. Which of the following is true if you need to fix the column of D2 in the formula? 40. Which of the following is the best choice if you need to do complex calculations with large amount of numeric data? 41. In Microsoft Excel, when you copy a formula in a cell (A12) and paste it into another cell (F34), the other cell (F34) will have ___________. 42. Which of the following is the most important job of an electronic spreadsheet program? 43. In Microsoft Excel, which of the following is the best choice if you need to see the total amount (set a cell, F34, to 100000) based on a value in another cell (by changing a value of a cell, B30)? 44. The default file management program in Windows 7 is _______________________. 45. The default text-based command-driven communication channel to Windows 7 is __________________________. 46. A Web server is based on the UNIX operating system architecture, and thus file and directory (folder) names can include spaces.

47. ___________________ is a named unit of storage. It is usually stored in a permanent storage device and can be copied into memory to be used. A program can be stored in it. Data (text, graphic, audio, or video) can be stored in it. 48. A worksheet in an electronic spreadsheet program is like a big table with many cells, each of which is flexible to handle text or numeric data. 49. In a computer, files are organized hierarchically. If you have sub-directories (sub-folders, e.g., assignments directory under the cis211 directory under the root directory), your Windows operating system will follow the path, C:\cis211\assignments\, to access a file under the assignments directory. 50. Computer directories or folders are useful tools that can be used to group relevant files together. Technically, operating systems treat them as if they are files.

Below are two questions that includes financial statements, that is why it is so many pages.

Question 1

The financial statements of Tootsie Roll are presented below.

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
		For the year ended December 31,
		2011		2010		2009
	Net product sales	$528,369			$517,149		$495,592
	Rental and royalty revenue	4,136			4,299		3,739
	Total revenue	532,505			521,448		499,331
	Product cost of goods sold	365,225			349,334		319,775
	Rental and royalty cost	1,038			1,088		852
	Total costs	366,263			350,422		320,627
	Product gross margin	163,144			167,815		175,817
	Rental and royalty gross margin	3,098			3,211		2,887
	Total gross margin	166,242			171,026		178,704
	Selling, marketing and administrative expenses	108,276			106,316		103,755
	Impairment charges	—			—		14,000
	Earnings from operations	57,966			64,710		60,949
	Other income (expense), net	2,946			8,358		2,100
	Earnings before income taxes	60,912			73,068		63,049
	Provision for income taxes	16,974			20,005		9,892
	Net earnings	$43,938			$53,063		$53,157

	Net earnings	$43,938			$53,063		$53,157
	Other comprehensive earnings (loss)	(8,740	)		1,183		2,845
	Comprehensive earnings	$35,198			$54,246		$56,002

	Retained earnings at beginning of year.	$135,866			$147,687		$144,949
	Net earnings	43,938			53,063		53,157
	Cash dividends	(18,360	)		(18,078	)	(17,790	)
	Stock dividends	(47,175	)		(46,806	)	(32,629	)
	Retained earnings at end of year	$114,269			$135,866		$147,687

	Earnings per share	$0.76			$0.90		$0.89

	Average Common and Class B Common shares outstanding	57,892			58,685		59,425
(The accompanying notes are an integral part of these statements.)

CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets		December 31,
			2011		2010
CURRENT ASSETS:
	Cash and cash equivalents		$78,612			$115,976
	Investments		10,895			7,996
	Accounts receivable trade, less allowances of $1,731 and $1,531		41,895			37,394
	Other receivables		3,391			9,961
	Inventories:
	Finished goods and work-in-process		42,676			35,416
	Raw materials and supplies		29,084			21,236
	Prepaid expenses		5,070			6,499
	Deferred income taxes		578			689
	Total current assets		212,201			235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
	Land		21,939			21,696
	Buildings		107,567			102,934
	Machinery and equipment		322,993			307,178
	Construction in progress		2,598			9,243
			455,097			440,974
	Less—Accumulated depreciation		242,935			225,482
	Net property, plant and equipment		212,162			215,492
OTHER ASSETS:
	Goodwill		73,237			73,237
	Trademarks		175,024			175,024
	Investments		96,161			64,461
	Split dollar officer life insurance		74,209			74,441
	Prepaid expenses		3,212			6,680
	Equity method investment		3,935			4,254
	Deferred income taxes		7,715			9,203
	Total other assets		433,493			407,300
	Total assets		$857,856			$857,959
Liabilities and Shareholders’ Equity		December 31,
			2011		2010
CURRENT LIABILITIES:
	Accounts payable		$10,683			$9,791
	Dividends payable		4,603			4,529
	Accrued liabilities		43,069			44,185
	Total current liabilities		58,355			58,505
NONCURRENT LIABILITES:
	Deferred income taxes		43,521			47,865
	Postretirement health care and life insurance benefits		26,108			20,689
	Industrial development bonds		7,500			7,500
	Liability for uncertain tax positions		8,345			9,835
	Deferred compensation and other liabilities		48,092			46,157
	Total noncurrent liabilities		133,566			132,046
SHAREHOLDERS’ EQUITY:
	Common stock, $.69-4/9 par value—120,000 shares authorized—36,479 and 36,057 respectively, issued		25,333			25,040
	Class B common stock, $.69-4/9 par value—40,000 shares authorized—21,025 and 20,466 respectively, issued		14,601			14,212
	Capital in excess of par value		533,677			505,495
	Retained earnings, per accompanying statement		114,269			135,866
	Accumulated other comprehensive loss		(19,953	)		(11,213	)
	Treasury stock (at cost)—71 shares and 69 shares, respectively		(1,992	)		(1,992	)
	Total shareholders’ equity		665,935			667,408
	Total liabilities and shareholders’ equity		$857,856			$857,959

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands)
					For the year ended December 31,
					2011		2010		2009
	CASH FLOWS FROM OPERATING ACTIVITIES:
		Net earnings		$43,938			$53,063			$53,157
		Adjustments to reconcile net earnings to net cash provided by operating activities:
			Depreciation		19,229			18,279			17,862
			Impairment charges		—			—			14,000
			Impairment of equity method investment		—			—			4,400
			Loss from equity method investment		194			342			233
			Amortization of marketable security premiums		1,267			522			320
			Changes in operating assets and liabilities:
			Accounts receivable		(5,448	)		717			(5,899	)
			Other receivables		3,963			(2,373	)		(2,088	)
			Inventories		(15,631	)		(1,447	)		455
			Prepaid expenses and other assets		5,106			4,936			5,203
			Accounts payable and accrued liabilities		84			2,180			(2,755	)
			Income taxes payable and deferred		(5,772	)		2,322			(12,543	)
			Postretirement health care and life insurance benefits		2,022			1,429			1,384
			Deferred compensation and other liabilities		2,146			2,525			2,960
			Others		(708	)		310			305
		Net cash provided by operating activities		50,390			82,805			76,994
	CASH FLOWS FROM INVESTING ACTIVITIES:
			Capital expenditures		(16,351	)		(12,813	)		(20,831	)
			Net purchase of trading securities		(3,234	)		(2,902	)		(1,713	)
			Purchase of available for sale securities		(39,252	)		(9,301	)		(11,331	)
			Sale and maturity of available for sale securities		7,680			8,208			17,511
			Net cash used in investing activities		(51,157	)		(16,808	)		(16,364	)
	CASH FLOWS FROM FINANCING ACTIVITIES:
			Shares repurchased and retired		(18,190	)		(22,881	)		(20,723	)
			Dividends paid in cash		(18,407	)		(18,130	)		(17,825	)
			Net cash used in financing activities		(36,597	)		(41,011	)		(38,548	)
	Increase (decrease) in cash and cash equivalents		(37,364	)		24,986			22,082
	Cash and cash equivalents at beginning of year		115,976			90,990			68,908
	Cash and cash equivalents at end of year		$78,612			$115,976			$90,990
	Supplemental cash flow information
			Income taxes paid		$16,906			$20,586			$22,364
			Interest paid		$38			$49			$182
			Stock dividend issued		$47,053			$46,683			$32,538
(The accompanying notes are an integral part of these statements.)

Five Year Summary of Earning and Financial Hightlights TOOTISE ROLL. INDUSTRY, INC. AND SUBSIDIARIES (Thousands of dollars except per share, percentage and ratio figures)
				2011		2010		2009		2008		2007
	Sales and Earnings Data
		Net product sales	$528,369			$517,149			$495,592			$492,051			$492,742
		Product gross margin	163,144			167,815			175,817			158,055			165,456
		Interest expenses	121			142			243			378			535
		Provision for income taxes	16,974			20,005			9,892			16,347			25,401
		Net earnings	43,938			53,063			53,157			38,880			52,175
		% of net product sales	8.3	%		10.3	%		10.7	%		7.9	%		10.6	%
		% of shareholders' equity	6.6	%		8.0	%		8.1	%		6.1	%		8.1	%

	Per Common Share Data
		Net earnings		$0.76			$0.90			$0.89			$0.65			$0.85
		Cash dvidends declared		0.32			0.32			0.32			0.32			0.32
		Stock dividends		3	%		3	%		3	%		3	%		3	%

	Additional Financial Data
		Working capital		$153,846			$176,662			$154,409			$129,694			$142,163
		Net cash provided by opreating activities		50,390			82,805			76,994			57,333			90,148
		Net cash provided by (used by) investing activities		(51,157	)		(16,808	)		(16,364	)		(7,565	)		(43,429	)
		Net cash used in financing activities		(36,597	)		(41,011	)		(38,548	)		(38,666	)		(44,842	)
		Property, plant & equipment additions		16,351			12,813			20,831			34,355			14,767
		Net property, plant & equipment		212,162			215,492			220,721			217,628			201,401
		Total assets		857,856			857,959			836,844			813,252			813,134
		Long-term debt		7,500			7,500			7,500			7,500			7,500
		Shareholders' equity		665,935			667,408			654,244			636,847			640,204
		Average shares outstanding		57,892			58,685			59,425			60,152			61,580

Notes to Consolidated Financial Statements ($ in thousands) Revenue recognition: Products are sold to customers based on accepted purchase orders which include quantity, sales price and other relevant terms of sale. Revenue, net of applicable provisions for discounts, returns, allowances and certain advertising and promotional costs, is recognized when products are delivered to customers and collectability is reasonably assured. Shipping and handling costs of $45,850, $43,034, and $38,628 in 2011, 2010 and 2009, respectively, are included in selling, marketing and administrative expenses. Accounts receivable are unsecured. Revenues from a major customer aggregated approximately 23.3%, 21.4% and 22.9% of net product sales during the years ended December 31, 2011, 2010 and 2009, respectively.

SEGMENT AND GEOGRAPHIC INFORMATION:

The Company operates as a single reportable segments encompassing the manufacturing and sale of confectionery products. Its principal manufacturing operations are located in the United States and Canada, and its principal market is in the United States. The Company also manufactures and sells confectionery products in Mexico, and exports products to Canada and countries worldwide.

The following geographic data includes net product sales summarized on the basis of the customer location and long-lived assets based on their location:

	2011	2010	2009
Net product sales:
United states	$487,185	$471,714	$455,517
Foreign	41,184	45,435	40,075
	$528,369	$517,149	$495,592
Long-lived assets:
United states	$170,173	$172,087	$176,044
Foreign	41,989	43,405	44,677
	$212,162	$215,492	$220,721

Calculate the accounts receivable turnover and average collection period for 2011. (Use “Net Product Sales.” Assume all sales were credit sales.) (Round answers to 1 decimal place, e.g. 15.2.)

Accounts receivable turnover			times
Average collection period			days

Question 2

The financial statements of The Hershey Company and Tootsie Roll are presented below.

THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31,	2011		2010		2009
In thousands of dollars except per share amounts
Net Sales	$6,080,788			$5,671,009		$5,298,668
Costs and Expenses:
Cost of sales	3,548,896			3,255,801		3,245,531
Selling, marketing and administrative	1,477,750			1,426,477		1,208,672
Business realignment and impairment (credits) charges, net	(886	)		83,433		82,875
Total costs and expenses	5,025,760			4,765,711		4,537,078
Income before Interest and Income Taxes	1,055,028			905,298		761,590
Interest expense, net	92,183			96,434		90,459
Income before Income Taxes	962,845			808,864		671,131
Provision for income taxes	333,883			299,065		235,137
Net Income	$628,962			$509,799		$435,994
Net Income Per Share—Basic—Class B Common Stock	$2.58			$2.08		$1.77
Net Income Per Share—Diluted—Class B Common Stock	$2.56			$2.07		$1.77
Net Income Per Share—Basic—Common Stock	$2.85			$2.29		$1.97
Net Income Per Share—Diluted—Common Stock	$2.74			$2.21		$1.90
Cash Dividends Paid Per Share:
Common Stock	$1.3800			$1.2800		$1.1900
Class B Common Stock	1.2500			1.1600		1.0712
The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.

THE HERSHEY COMPANY CONSOLIDATED BALANCE SHEETS
December 31,	2011		2010
In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents	$693,686			$884,642
Accounts receivable—trade	399,499			390,061
Inventories	648,953			533,622
Deferred income taxes	136,861			55,760
Prepaid expenses and other	167,559			141,132
Total current assets	2,046,558			2,005,217
Property, Plant and Equipment, Net	1,559,717			1,437,702
Goodwill	516,745			524,134
Other Intangibles	111,913			123,080
Deferred Income Taxes	38,544			21,387
Other Assets	138,722			161,212
Total assets	$4,412,199			$4,272,732
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$420,017			$410,655
Accrued liabilities	612,186			593,308
Accrued income taxes	1,899			9,402
Short-term debt	42,080			24,088
Current portion of long-term debt	97,593			261,392
Total current liabilities	1,173,775			1,298,845
Long-term Debt	1,748,500			1,541,825
Other Long-term Liabilities	617,276			494,461
Total liabilities	3,539,551			3,335,131
Commitments and Contingencies	—			—
Stockholders’ Equity:
The Hershey Company Stockholders’ Equity
Preferred Stock, shares issued: none in 2011 and 2010	—			—
Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in 2010	299,269			299,195
Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010	60,632			60,706
Additional paid-in capital	490,817			434,865
Retained earnings	4,699,597			4,374,718
Treasury—Common Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010	(4,258,962	)		(4,052,101	)
Accumulated other comprehensive loss	(442,331	)		(215,067	)
The Hershey Company stockholders’ equity	849,022			902,316
Noncontrolling interests in subsidiaries	23,626			35,285
Total stockholders’ equity	872,648			937,601
Total liabilities and stockholders’equity	$4,412,199			$4,272,732

THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31,		2011		2010		2009
In thousands of dollars
Cash Flows Provided from (Used by) Operating Activities
	Net income		$628,962			$509,799			$435,994
	Adjustments to reconcile net income to net cash provided from operations:
	Depreciation and amortization		215,763			197,116			182,411
	Stock-based compensation expense, net of tax of $15,127, $17,413 and $19,223, respectively		28,341			32,055			34,927
	Excess tax benefits from stock-based compensation		(13,997	)		(1,385	)		(4,455	)
	Deferred income taxes		33,611			(18,654	)		(40,578	)
	Gain on sale of trademark licensing rights, net of tax of $5,962		(11,072	)		—			—
	Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively		30,838			77,935			60,823
	Contributions to pension plans		(8,861	)		(6,073	)		(54,457	)
	Changes in assets and liabilities, net of effects from business acquisitions and divestitures:
	Accounts receivable—trade		(9,438	)		20,329			46,584
	Inventories		(115,331	)		(13,910	)		74,000
	Accounts payable		7,860			90,434			37,228
	Other assets and liabilities		(205,809	)		13,777			293,272
Net Cash Provided from Operating Activities		580,867			901,423			1,065,749
Cash Flows Provided from (Used by) Investing Activities
	Capital additions		(323,961	)		(179,538	)		(126,324	)
	Capitalized software additions		(23,606	)		(21,949	)		(19,146	)
	Proceeds from sales of property, plant and equipment		312			2,201			10,364
	Proceeds from sales of trademark licensing rights		20,000			—			—
	Business acquisitions		(5,750	)		—			(15,220	)
Net Cash (Used by) Investing Activities		(333,005	)		(199,286	)		(150,326	)
Cash Flows Provided from (Used by) Financing Activities
	Net change in short-term borrowings		10,834			1,156			(458,047	)
	Long-term borrowings		249,126			348,208			—
	Repayment of long-term debt		(256,189	)		(71,548	)		(8,252	)
	Proceeds from lease financing agreement		47,601			—			—
	Cash dividends paid		(304,083	)		(283,434	)		(263,403	)
	Exercise of stock options		184,411			92,033			28,318
	Excess tax benefits from stock-based compensation		13,997			1,385			4,455
	Contributions from noncontrolling interests in subsidiaries		—			10,199			7,322
	Repurchase of Common Stock		(384,515	)		(169,099	)		(9,314	)
Net Cash (Used by) Financing Activities		(438,818	)		(71,100	)		(698,921	)
(Decrease) Increase in Cash and Cash Equivalents		(190,956	)		631,037			216,502
Cash and Cash Equivalents as of January 1		884,642			253,605			37,103
Cash and Cash Equivalents as of December 31		$693,686			$884,642			$253,605
Interest Paid		$97,892			$97,932			$91,623
Income Taxes Paid		292,315			350,948			252,230

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
		For the year ended December 31,
		2011		2010		2009
	Net product sales	$528,369			$517,149		$495,592
	Rental and royalty revenue	4,136			4,299		3,739
	Total revenue	532,505			521,448		499,331
	Product cost of goods sold	365,225			349,334		319,775
	Rental and royalty cost	1,038			1,088		852
	Total costs	366,263			350,422		320,627
	Product gross margin	163,144			167,815		175,817
	Rental and royalty gross margin	3,098			3,211		2,887
	Total gross margin	166,242			171,026		178,704
	Selling, marketing and administrative expenses	108,276			106,316		103,755
	Impairment charges	—			—		14,000
	Earnings from operations	57,966			64,710		60,949
	Other income (expense), net	2,946			8,358		2,100
	Earnings before income taxes	60,912			73,068		63,049
	Provision for income taxes	16,974			20,005		9,892
	Net earnings	$43,938			$53,063		$53,157

	Net earnings	$43,938			$53,063		$53,157
	Other comprehensive earnings (loss)	(8,740	)		1,183		2,845
	Comprehensive earnings	$35,198			$54,246		$56,002

	Retained earnings at beginning of year.	$135,866			$147,687		$144,949
	Net earnings	43,938			53,063		53,157
	Cash dividends	(18,360	)		(18,078	)	(17,790	)
	Stock dividends	(47,175	)		(46,806	)	(32,629	)
	Retained earnings at end of year	$114,269			$135,866		$147,687

	Earnings per share	$0.76			$0.90		$0.89

	Average Common and Class B Common shares outstanding	57,892			58,685		59,425
(The accompanying notes are an integral part of these statements.)

CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets		December 31,
			2011		2010
CURRENT ASSETS:
	Cash and cash equivalents		$78,612			$115,976
	Investments		10,895			7,996
	Accounts receivable trade, less allowances of $1,731 and $1,531		41,895			37,394
	Other receivables		3,391			9,961
	Inventories:
	Finished goods and work-in-process		42,676			35,416
	Raw materials and supplies		29,084			21,236
	Prepaid expenses		5,070			6,499
	Deferred income taxes		578			689
	Total current assets		212,201			235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
	Land		21,939			21,696
	Buildings		107,567			102,934
	Machinery and equipment		322,993			307,178
	Construction in progress		2,598			9,243
			455,097			440,974
	Less—Accumulated depreciation		242,935			225,482
	Net property, plant and equipment		212,162			215,492
OTHER ASSETS:
	Goodwill		73,237			73,237
	Trademarks		175,024			175,024
	Investments		96,161			64,461
	Split dollar officer life insurance		74,209			74,441
	Prepaid expenses		3,212			6,680
	Equity method investment		3,935			4,254
	Deferred income taxes		7,715			9,203
	Total other assets		433,493			407,300
	Total assets		$857,856			$857,959
Liabilities and Shareholders’ Equity		December 31,
			2011		2010
CURRENT LIABILITIES:
	Accounts payable		$10,683			$9,791
	Dividends payable		4,603			4,529
	Accrued liabilities		43,069			44,185
	Total current liabilities		58,355			58,505
NONCURRENT LIABILITES:
	Deferred income taxes		43,521			47,865
	Postretirement health care and life insurance benefits		26,108			20,689
	Industrial development bonds		7,500			7,500
	Liability for uncertain tax positions		8,345			9,835
	Deferred compensation and other liabilities		48,092			46,157
	Total noncurrent liabilities		133,566			132,046
SHAREHOLDERS’ EQUITY:
	Common stock, $.69-4/9 par value—120,000 shares authorized—36,479 and 36,057 respectively, issued		25,333			25,040
	Class B common stock, $.69-4/9 par value—40,000 shares authorized—21,025 and 20,466 respectively, issued		14,601			14,212
	Capital in excess of par value		533,677			505,495
	Retained earnings, per accompanying statement		114,269			135,866
	Accumulated other comprehensive loss		(19,953	)		(11,213	)
	Treasury stock (at cost)—71 shares and 69 shares, respectively		(1,992	)		(1,992	)
	Total shareholders’ equity		665,935			667,408
	Total liabilities and shareholders’ equity		$857,856			$857,959

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands)
					For the year ended December 31,
					2011		2010		2009
	CASH FLOWS FROM OPERATING ACTIVITIES:
		Net earnings		$43,938			$53,063			$53,157
		Adjustments to reconcile net earnings to net cash provided by operating activities:
			Depreciation		19,229			18,279			17,862
			Impairment charges		—			—			14,000
			Impairment of equity method investment		—			—			4,400
			Loss from equity method investment		194			342			233
			Amortization of marketable security premiums		1,267			522			320
			Changes in operating assets and liabilities:
			Accounts receivable		(5,448	)		717			(5,899	)
			Other receivables		3,963			(2,373	)		(2,088	)
			Inventories		(15,631	)		(1,447	)		455
			Prepaid expenses and other assets		5,106			4,936			5,203
			Accounts payable and accrued liabilities		84			2,180			(2,755	)
			Income taxes payable and deferred		(5,772	)		2,322			(12,543	)
			Postretirement health care and life insurance benefits		2,022			1,429			1,384
			Deferred compensation and other liabilities		2,146			2,525			2,960
			Others		(708	)		310			305
		Net cash provided by operating activities		50,390			82,805			76,994
	CASH FLOWS FROM INVESTING ACTIVITIES:
			Capital expenditures		(16,351	)		(12,813	)		(20,831	)
			Net purchase of trading securities		(3,234	)		(2,902	)		(1,713	)
			Purchase of available for sale securities		(39,252	)		(9,301	)		(11,331	)
			Sale and maturity of available for sale securities		7,680			8,208			17,511
			Net cash used in investing activities		(51,157	)		(16,808	)		(16,364	)
	CASH FLOWS FROM FINANCING ACTIVITIES:
			Shares repurchased and retired		(18,190	)		(22,881	)		(20,723	)
			Dividends paid in cash		(18,407	)		(18,130	)		(17,825	)
			Net cash used in financing activities		(36,597	)		(41,011	)		(38,548	)
	Increase (decrease) in cash and cash equivalents		(37,364	)		24,986			22,082
	Cash and cash equivalents at beginning of year		115,976			90,990			68,908
	Cash and cash equivalents at end of year		$78,612			$115,976			$90,990
	Supplemental cash flow information
			Income taxes paid		$16,906			$20,586			$22,364
			Interest paid		$38			$49			$182
			Stock dividend issued		$47,053			$46,683			$32,538
(The accompanying notes are an integral part of these statements.)

Based on the information contained in these financial statements, compute the following 2011 values for each company. (Round answers to 1 decimal place, e.g. 15.2.)

(1)	Accounts receivable turnover. (For Tootsie Roll, use “Net product sales.” Assume all sales were credit sales.)
(2)	Average collection period for accounts receivable.

	Tootsie Roll		Hershey Company
Accounts receivable turnover		times		times
Average collection period		days		days

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