Access the 2010 annual report for Tootsie Roll Industries by clicking on the Company Information and Financial Information links at
1. Examine the company's balance sheet and conduct horizontal and vertical analyses of the company's total shareholders' equity. Round percentages to one decimal point (i.e., 9.4%).
2. Calculate the company's 2010 return on equity ratio. Using the dividend and price data found on page 28 of the annual report, calculate the company's 2010 dividend yield from cash dividends assuming that an investor purchased the stock at the low price during the first quarter of 2010. Round percentages to one decimal point (i.e., 9.4%).
3. Examine the company's statement of retained earnings and determine the value of stock dividends declared during 2010.
4. Examine the financing activities section of the company's statement of cash flows. How would you characterize the company's activity over the past three years?
5. Based on your answers above, write a paragraph explaining your opinion of Tootsie Roll's 2010 equity position. Use your answers as supporting facts.

  • CreatedJuly 16, 2015
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