Question

The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc.:
Sales ............ $533
Cost of goods sold ..... 366
Net income ........ 44
Interest expense ...... 0
Tax expense ......... 17
Average total assets ...... 858
1. What is Tootsie Roll’s percent of the cost of sales to sales? Round to one decimal place.
2. The percent a company adds to its cost of sales to determine selling price is called a markup.
What is Tootsie Roll’s markup percent? Round to one decimal place.
3. What is the percentage of net income to sales for Tootsie Roll? Round to one decimal place.
4. Compute the rate of return on assets for Tootsie Roll.
5. Using FA1-1, compare the markup percentages, net income per sales dollar, and rate of return on assets for Hershey and Tootsie Roll.



$1.99
Sales1
Views103
Comments0
  • CreatedMarch 11, 2014
  • Files Included
Post your question
5000