Refer to the financial statements of Tootsie Roll Industries and the accompanying notes to its financial statements

Question:

Refer to the financial statements of Tootsie Roll Industries and the accompanying notes to its financial statements in Appendix A.

Instructions

(a) Calculate the receivables turnover ratio and average collection period for 2009. (Use “Net Product Sales.” Assume all sales were credit sales.)

(b) Did Tootsie Roll have any potentially significant credit risks in 2009?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...