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[answered] Based on the information contained in these financial state


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
B Specimen Financial Statements: The Hershey Company
The Hershey Company
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 Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
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
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 sale 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

 


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In thousands of dollars ? ? ? ? ? ? ? ? ?
Balance as of January 1, 2009 $? $299,190 $60,711 $352,375 $3,975,762 $(4,009,931) $(359,908) $31,745 $349,944
Net income ? ? ? ? 435,994 ? ? ? 435,994
Other comprehensive income ? ? ? ? ? ? 157,064 ? 157,064
Comprehensive income ? ? ? ? ? ? ? ? 593,058
Dividends:
Common Stock, $1.19 per share ? ? ? ? (198,371) ? ? ? (198,371)
Class B Common Stock, $1.0712 per share ? ? ? ? (65,032) ? ? ? (65,032)
Conversion of Class B Common Stock into Common Stock ? 2 (2) ? ? ? ? ? ?
Incentive plan transactions ? ? ? (355) ? 4,762 ? ? 4,407
Stock-based compensation ? ? ? 44,704 ? ? ? ? 44,704
Exercise of stock options ? ? ? (2,046) ? 34,854 ? ? 32,808
Repurchase of Common Stock ? ? ? ? ? (9,314) ? ? (9,314)
Noncontrolling interests in subsidiaries ? ? ? ? ? ? ? 8,135 8,135
Balance as of December 31, 2009 ? 299,192 60,709 394,678 4,148,353 (3,979,629) (202,844) 39,880 760,339
Net income