You are considering making a loan to The Hershey Company. The following information is from the financial

Question:

You are considering making a loan to The Hershey Company. The following information is from the included in Form 10-Kfbr fiscal years 2013 and 2012 (in thousands of dollars):
Net sales for the year ended:
December 31, 2013 ......................................... $7,146,079
December 31, 2012 ......................................... 6,644.252
Accounts receivable-trade, net:
December 31, 2013 ......................................... 477,912
December 31, 2012 ......................................... 461,383
December 31, 2011 ........................................ 399,499
The following information is from the included in the annual report and incorporated by reference in Form 10-K for fiscal years 2013 and 2012 for Tootsie Roll Industries, Inc. (in thousands of dollars):
Net product sales for the year ended:
December 31, 2013 ..................... $539,627
December 31, 2012 ...................... 545,985
Accounts receivable trade, less allowances of
$2,042, $2,142 and $1,731 respectively:
December 31, 2013 ...................... 40,721
December 31, 2012 ...................... 42,108
December 31, 2011 ...................... 41,895
Required
Part A. The Ratio Analysis Model
A lender must assess how well a company is managing its before making a loan. The turnover ratio tells us how many times in a year a company collects its receivables. Replicate the five steps in the Ratio Analysis Model on pages 332-333 to analyze the turnover ratios for The Hershey Company and Tootsie Roll Industries, Inc.:
1. Formulate the Question
2. Gather the Information from the Calculate the Ratio
4. Compare the Ratio with Other Ratios
5. Interpret the Ratios
Part B. The Business Decision Model
A lender must consider a variety of factors, including financial ratios, before making a loan. Replicate the five steps in the Business Decision Model on page 333 to decide whether to loan money to The Hershey Company:
1. Formulate the Question
2. Gather Information from the and Other Sources
3. Analyze the Information Gathered
4. Make the Decision
5. Monitor Your Decision
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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...