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Answer the following questions. You may type your responses into the worksheet; however, be sure to use complete sentences. Note that the financial information provided in the actual statement of cash flows is in thousands. Adjust your answers accordingly. 1. Does Tootsie Roll Industries (TRI) use the indirect method or direct method for preparing its statement of cash dows? How can you tell? Lesti oll Industries (TRI) uses the indirect method for perparing its statement of cash flow. They use precise descriptions of how the cash is received How much cash was provided by (used in) the following activities in 2022 and 2021? Use parentheses to indicate use of cash Operating activities 2022 Investing activities 2022: Financing activities 2022 2021 2021 2021: 3. Does Tootsie Roll Industries adequately provide cash through its operating activities? What is the significance of Review the Investing Activities for 2022. What was the single most source of cash for 2022? What was the single most use of cash for 20227 5 Notice that there are both purchases and sales in rities of trading securities. Why do you think these amounts are reported separately? Why is there not just a single amount for out changes in trading securities 6. Review the Financing Activities for 2022. What was the single most source of cash for 2022? What was the single most use of cash for 20227 7. What is the amount of cash (and cash equivalents) you expect to see on the Balance Sheet for Dec. 31, 20227 8. Restate the Statement of Cash Flows showing only the total amounts for the three activities sections (you may ignore the adjustment for the effect of exchange rates). Tootsie Roll Industries, Inc and Subsidiaries Statement of Cash Flows Overview For the years ended December 31 (amounts in thousands) I Cash flows provided by (used in) operating activities Cash flows provided by (used in) Investing activities Cash flows provided by (used in) financing activities Net change in cash (excluding the effect of exchange rates) 2022 2021 2020 9. Based on the overview prepared above, generally describe how TRI has obtained its cash and what it has used cash for. Think in terms of overall activities of operating, investing and financing. In general which of the three activity types provided cash and which ones used cash. (You may ignore the line item for the effect of exchange rates on cash.) CONSOLIDATED STATEMENTS OF Cash Flows TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation Deferred income taxes Amortization of marketable security premiums Changes in operating assets and liabilities: Accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilities Income taxes payable Postretirement health care benefits Deferred compensation and other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Repayment of premiums on split dollar life insurance policies Purchases of trading securities Sales of trading securities Purchase of available for sale securities Sale and maturity of available for sale securities Net cash (used in) provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Shares purchased and retired Dividends paid in cash Proceeds from bank loans Repayment of bank loans Net cash used in financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and cash equivalents Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of year Supplemental cash flow information: Income taxes paid Interest paid Stock dividend issued (The accompanying notes are an integral part of these statements.) $ $ $ S $ For the year ended December 31, 2021 2022 75,892 $ 65,308 $ 58,974 17,668 17,570 18,184 1,535 (1,263) 5,531 3,837 (3,073) (1,020) (28,415) 49 10,329 (4,565) (804) (1,076) 72,051 (23,356) (1,543) 2,806 (96,114) 49,618 (68,589) (3,850) (56,400) 347 (14,130) (706) (52,591) 106,226 53,635 3,940 2,622 10,010 (1,296) (1,281) 687 85,298 (31,426) 2,514 (2,668) 968 (in thousands) (108,576) 47,289 (91,899) 2020 (279) 1,404 3,483 636 (770) 2,961 3,849 3,012 (1,041) (15,703) 74,710 (17,970) 23,527 (3,183) 18,058 (31,910) (30,184) (24,629) (24,136) 3,989 3,792 (3,618) (54,146) (283) (61,030) 27,916 167,256 139,340 S 106,226 $ 167,256 (109,816) 98,885 9,501 (32,055) (23,810) 3,902 (3,883) (55,846) (449) 23,884 S 22,855 S 78 S 6 $ 70,242 $ 64,667 $ 63,402 14,503 57 Answer the following questions. You may type your responses into the worksheet; however, be sure to use complete sentences. Note that the financial information provided in the actual statement of cash flows is in thousands. Adjust your answers accordingly. 1. Does Tootsie Roll Industries (TRI) use the indirect method or direct method for preparing its statement of cash dows? How can you tell? Lesti oll Industries (TRI) uses the indirect method for perparing its statement of cash flow. They use precise descriptions of how the cash is received How much cash was provided by (used in) the following activities in 2022 and 2021? Use parentheses to indicate use of cash Operating activities 2022 Investing activities 2022: Financing activities 2022 2021 2021 2021: 3. Does Tootsie Roll Industries adequately provide cash through its operating activities? What is the significance of Review the Investing Activities for 2022. What was the single most source of cash for 2022? What was the single most use of cash for 20227 5 Notice that there are both purchases and sales in rities of trading securities. Why do you think these amounts are reported separately? Why is there not just a single amount for out changes in trading securities 6. Review the Financing Activities for 2022. What was the single most source of cash for 2022? What was the single most use of cash for 20227 7. What is the amount of cash (and cash equivalents) you expect to see on the Balance Sheet for Dec. 31, 20227 8. Restate the Statement of Cash Flows showing only the total amounts for the three activities sections (you may ignore the adjustment for the effect of exchange rates). Tootsie Roll Industries, Inc and Subsidiaries Statement of Cash Flows Overview For the years ended December 31 (amounts in thousands) I Cash flows provided by (used in) operating activities Cash flows provided by (used in) Investing activities Cash flows provided by (used in) financing activities Net change in cash (excluding the effect of exchange rates) 2022 2021 2020 9. Based on the overview prepared above, generally describe how TRI has obtained its cash and what it has used cash for. Think in terms of overall activities of operating, investing and financing. In general which of the three activity types provided cash and which ones used cash. (You may ignore the line item for the effect of exchange rates on cash.) CONSOLIDATED STATEMENTS OF Cash Flows TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation Deferred income taxes Amortization of marketable security premiums Changes in operating assets and liabilities: Accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilities Income taxes payable Postretirement health care benefits Deferred compensation and other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Repayment of premiums on split dollar life insurance policies Purchases of trading securities Sales of trading securities Purchase of available for sale securities Sale and maturity of available for sale securities Net cash (used in) provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Shares purchased and retired Dividends paid in cash Proceeds from bank loans Repayment of bank loans Net cash used in financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and cash equivalents Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of year Supplemental cash flow information: Income taxes paid Interest paid Stock dividend issued (The accompanying notes are an integral part of these statements.) $ $ $ S $ For the year ended December 31, 2021 2022 75,892 $ 65,308 $ 58,974 17,668 17,570 18,184 1,535 (1,263) 5,531 3,837 (3,073) (1,020) (28,415) 49 10,329 (4,565) (804) (1,076) 72,051 (23,356) (1,543) 2,806 (96,114) 49,618 (68,589) (3,850) (56,400) 347 (14,130) (706) (52,591) 106,226 53,635 3,940 2,622 10,010 (1,296) (1,281) 687 85,298 (31,426) 2,514 (2,668) 968 (in thousands) (108,576) 47,289 (91,899) 2020 (279) 1,404 3,483 636 (770) 2,961 3,849 3,012 (1,041) (15,703) 74,710 (17,970) 23,527 (3,183) 18,058 (31,910) (30,184) (24,629) (24,136) 3,989 3,792 (3,618) (54,146) (283) (61,030) 27,916 167,256 139,340 S 106,226 $ 167,256 (109,816) 98,885 9,501 (32,055) (23,810) 3,902 (3,883) (55,846) (449) 23,884 S 22,855 S 78 S 6 $ 70,242 $ 64,667 $ 63,402 14,503 57
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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