Acc 291 Acc291 PDF

ACC 291
The Latest Version A+ Study Guide

Entire Course
https://uopcourses.com/category/acc-291/
ACC 291 WileyPLUS Assignment: Week 1 Assignment

Resource: WileyPLUS
Click Assignment: Week 1 Assignment within WileyPLUS to complete the following exercises:
Exercise 8-4
Exercise 8-11
BYP 8-1
BYP 8-2
Exercise 8-4
Answer
The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $87,000;
Credit Sales $820,000; and Sales Returns and Allowances $52,600. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
(a)
If Wainwright uses the direct write-off method to account for uncollectible accounts, journalize the
adjusting entry at December 31, assuming Wainwright determines that Hillers $1,100 balance is
uncollectible.
(b)
If Allowance for Doubtful Accounts has a credit balance of $850 in the trial balance, journalize the adjusting
entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.
Exercise 8-11
Suppose the following information was taken from the 2014 financial statements of FedEx Corporation,
a major global transportation/delivery company.
(in millions)
Accounts receivable (gross)
2014
$ 3,490
2013
$ 4,420
Accounts receivable (net)

Allowance for doubtful accounts
Sales revenue
Total current assets
3,335
4,296
155
124
35,898
38,861
7,011
7,189
Answer each of the following questions.
Broadening Your Perspective 8-1
Your answer is correct.
The financial statements of Tootsie Roll are presented below.

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
Product gross margin
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
Selling, marketing and administrative expenses
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
Earnings before income taxes
60,912
73,068
63,049
Provision for income taxes
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Net product sales

Rental and royalty revenue
Rental and royalty cost
Rental and royalty gross margin
Impairment charges
Earnings from operations
Other income (expense), net
Other comprehensive earnings (loss)
(8,740)
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
Comprehensive earnings
Retained earnings at beginning of year.

Net earnings
Retained earnings at end of year
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Earnings per share

Average Common and Class B Common shares outstanding
(The accompanying notes are an integral part of these statements.)
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
Accounts receivable trade, less allowances of $1,731 and $1,531
41,895
37,394
3,391
9,961
Finished goods and work-in-process
42,676
35,416
Raw materials and supplies
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
Machinery and equipment
322,993
307,178
2,598
9,243
455,097
440,974
LessAccumulated depreciation
242,935
225,482
Net property, plant and equipment
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
Split dollar officer life insurance
74,209
74,441
Prepaid expenses
3,212
6,680
Equity method investment
3,935
4,254
CURRENT ASSETS:
Cash and cash equivalents
Other receivables
Inventories:
Prepaid expenses
Deferred income taxes
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land
Construction in progress
OTHER ASSETS:
Goodwill
7,715
9,203
433,493
407,300
$857,856
$857,959
Total other assets

Total assets
Liabilities and Shareholders Equity
December 31,
2011
2010
CURRENT LIABILITIES:
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
Total current liabilities
58,355
58,505
43,521
47,865
Postretirement health care and life insurance benefits
26,108
20,689
Industrial development bonds
7,500
7,500
Liability for uncertain tax positions
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
Capital in excess of par value
533,677
505,495
Retained earnings, per accompanying statement
114,269
135,866
Accumulated other comprehensive loss
(19,953)
(11,213)
(1,992)
(1,992)
Dividends payable
NONCURRENT LIABILITES:
Deferred compensation and other liabilities

Total noncurrent liabilities
SHAREHOLDERS EQUITY:
Common stock, $.69-4/9 par value120,000 shares authorized36,479 and
36,057 respectively, issued
Class B common stock, $.69-4/9 par value40,000 shares authorized21,025
and 20,466 respectively, issued
Treasury stock (at cost)71 shares and 69 shares, respectively

Total shareholders equity
Total liabilities and shareholders equity
665,935
667,408
$857,856
$857,959

Cash Flows (in thousands)
2011
2010
2009
$43,938
$53,063
$53,157
CASH FLOWS FROM OPERATING ACTIVITIES:

Net earnings
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation
19,229
18,279
17,862
Impairment charges
14,000
Impairment of equity method investment
4,400
194
342
233
1,267
522
320
Loss from equity method investment

Amortization of marketable security premiums
Changes in operating assets and liabilities:
Accounts receivable
(5,448)
Other receivables
717
3,963
Inventories
(2,373)
(15,631)
Prepaid expenses and other assets
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511
Accounts payable and accrued liabilities

Income taxes payable and deferred
Others
(708)
Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
Net purchase of trading securities
Purchase of available for sale securities
Sale and maturity of available for sale securities
7,680
Net cash used in investing activities
(51,157)
(16,808)
(16,364)
Shares repurchased and retired
(18,190)
(22,881)
(20,723)
Dividends paid in cash
(18,407)
(18,130)
(17,825)
Net cash used in financing activities
(36,597)
(41,011)
(38,548)
Increase (decrease) in cash and cash equivalents
(37,364)
24,986
22,082
Cash and cash equivalents at beginning of year
115,976
90,990
68,908
Cash and cash equivalents at end of year
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538
CASH FLOWS FROM FINANCING ACTIVITIES:
Supplemental cash flow information

Income taxes paid
Interest paid
Stock dividend issued
Five Year Summary of Earning and Financial Hightlights

TOOTISE ROLL. INDUSTRY, INC. AND SUBSIDIARIES
(Thousands of dollars except per share, percentage and ratio figures)
2011
2010
2009
2008
2007
Sales and Earnings Data

Net product sales
$528,369
$517,149
$495,592
$492,051
$492,742
163,144
167,815
175,817
158,055
165,456
121
142
243
378
535
16,974
20,005
9,892
16,347
25,401
Net earnings
43,938
53,063
53,157
38,880
52,175

Interest expenses
% of net product sales
8.3%
10.3%
10.7%
7.9%
10.6%
% of shareholders' equity
6.6%
8.0%
8.1%
6.1%
8.1%
Per Common Share Data

Net earnings
Cash dvidends declared
$0.76
$0.90
$0.89
$0.65
$0.85
0.32
0.32
0.32
0.32
0.32
Stock dividends
3%
3%
3%
3%
3%
Additional Financial Data

Working capital
$153,846
$176,662
$154,409
$129,694
$142,163
50,390
82,805
76,994
57,333
90,148
(51,157)
(16,808)
(16,364)
(7,565)
(43,429)
(36,597)
(41,011)
(38,548)
(38,666)
(44,842)
16,351
12,813
20,831
34,355
14,767
Net property, plant & equipment
212,162
215,492
220,721
217,628
201,401
Total assets
857,856
857,959
836,844
813,252
813,134
7,500
7,500
7,500
7,500
7,500
665,935
667,408
654,244
636,847
640,204
57,892
58,685
59,425
60,152
61,580
Net cash provided by opreating

activities
Net cash provided by (used by)
investing activities
Net cash used in financing
activities
Property, plant & equipment
additions
Long-term debt
Shareholders' equity
Average shares outstanding
Notes to Consolidated Financial Statements ($ in thousands)
Revenue recognition:
Products are sold to customers based on accepted purchase orders which include quantity, sales price
and other relevant terms of sale. Revenue, net of applicable provisions for discounts, returns,
allowances and certain advertising and promotional costs, is recognized when products are delivered
to customers and collectability is reasonably assured. Shipping and handling costs of $45,850,
$43,034, and $38,628 in 2011, 2010 and 2009, respectively, are included in selling, marketing and
administrative expenses. Accounts receivable are unsecured. Revenues from a major customer
aggregated approximately 23.3%, 21.4% and 22.9% of net product sales during the years ended
December 31, 2011, 2010 and 2009, respectively.
SEGMENT AND GEOGRAPHIC INFORMATION:

The Company operates as a single reportable segments encompassing the manufacturing and sale of
confectionery products. Its principal manufacturing operations are located in the United States and Canada, and
its principal market is in the United States. The Company also manufactures and sells confectionery products in
Mexico, and exports products to Canada and countries worldwide.
The following geographic data includes net product sales summarized on the basis of the customer location and
long-lived assets based on their location:
2011
2010
2009
$487,185
$471,714
$455,517
41,184
45,435
40,075
Net product sales:

United states
Foreign
$528,369
$517,149
$495,592
$170,173
$172,087
$176,044
41,989
43,405
44,677
$212,162
$215,492
$220,721
Long-lived assets:
United states
Foreign
The financial statements of The Hershey Company and Tootsie Roll are presented below.
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31,
2011
2010
2009
$6,080,788
$5,671,009
$5,298,668
Cost of sales
3,548,896
3,255,801
3,245,531
Selling, marketing and administrative
1,477,750
1,426,477
1,208,672
83,433
82,875
5,025,760
4,765,711
4,537,078
1,055,028
905,298
761,590
92,183
96,434
90,459
962,845
808,864
671,131
333,883
299,065
235,137
$628,962
$509,799
$435,994
Net Income Per ShareBasicClass B Common Stock
$2.58
$2.08
$1.77
Net Income Per ShareDilutedClass B Common Stock
$2.56
$2.07
$1.77
Net Income Per ShareBasicCommon Stock
$2.85
$2.29
$1.97
Net Income Per ShareDilutedCommon Stock
$2.74
$2.21
$1.90
$1.3800
$1.2800
$1.1900
1.2500
1.1600
1.0712
In thousands of dollars except per share amounts

Net Sales
Costs and Expenses:
Business realignment and impairment (credits) charges, net

Total costs and expenses
Income before Interest and Income Taxes
Interest expense, net
Income before Income Taxes
Net Income
(886)
Cash Dividends Paid Per Share:

Common Stock
Class B Common Stock
The notes to consolidated financial statements are an integral part of these statements and are included in the
Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
THE HERSHEY COMPANY

CONSOLIDATED BALANCE SHEETS
December 31,
2011
2010
In thousands of dollars
ASSETS
Current Assets:
$693,686
$884,642
Accounts receivabletrade
399,499
390,061
Inventories
648,953
533,622
136,861
55,760
Prepaid expenses and other
167,559
141,132
2,046,558
2,005,217
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
38,544
21,387
Other Assets
138,722
161,212
Total assets
$4,412,199
$4,272,732
Accounts payable
$420,017
$410,655
Accrued liabilities
612,186
593,308
1,899
9,402
Short-term debt
42,080
24,088
Current portion of long-term debt
97,593
261,392
1,173,775
1,298,845
1,748,500
1,541,825
617,276
494,461
3,539,551
3,335,131
299,269
299,195
60,632
60,706
490,817
434,865
4,699,597
4,374,718
(4,258,962)
(4,052,101)
(442,331)
(215,067)
849,022
902,316
23,626
35,285

Property, Plant and Equipment, Net
Deferred Income Taxes
LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities:
Accrued income taxes

Long-term Debt
Other Long-term Liabilities
Total liabilities
Commitments and Contingencies
Stockholders Equity:
The Hershey Company Stockholders Equity
Preferred Stock, shares issued: none in 2011 and 2010
Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in
2010
Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419
in 2010
Additional paid-in capital
Retained earnings
TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and
132,871,512 in 2010
The Hershey Company stockholders equity
Noncontrolling interests in subsidiaries
Total stockholders equity

Total liabilities and stockholdersequity
872,648
937,601
$4,412,199
$4,272,732
THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
2011
2010
2009
$628,962
$509,799
$435,994
215,763
197,116
182,411
28,341
32,055
34,927
(1,385)
(4,455)
(18,654)
(40,578)
Cash Flows Provided from (Used by) Operating Activities
Net income
Adjustments to reconcile net income to net cash provided from
operations:
Depreciation and amortization
Stock-based compensation expense, net of tax of $15,127,
$17,413 and $19,223, respectively
Excess tax benefits from stock-based compensation
Gain on sale of trademark licensing rights, net of tax of $5,962
Business realignment and impairment charges, net of tax of
$18,333, $20,635 and $38,308, respectively
Contributions to pension plans
(13,997)
33,611
(11,072)
30,838
77,935
60,823
(8,861)
(6,073)
(9,438)
20,329
46,584
(13,910)
74,000
90,434
37,228
13,777
293,272
580,867
901,423
1,065,749
(323,961)
(179,538)
(126,324)
(23,606)
(21,949)
(19,146)
(54,457)
Changes in assets and liabilities, net of effects from business

acquisitions and divestitures:
Inventories
Accounts payable
Other assets and liabilities
Net Cash Provided from Operating Activities
(115,331)
7,860
(205,809)
Cash Flows Provided from (Used by) Investing Activities

Capital additions
Capitalized software additions
Proceeds from sales of property, plant and equipment
312
2,201
10,364
Proceeds from sales of trademark licensing rights
20,000
Business acquisitions
(5,750)
Net Cash (Used by) Investing Activities
(333,005)
(199,286)
(15,220)
(150,326)
Cash Flows Provided from (Used by) Financing Activities

Net change in short-term borrowings
Long-term borrowings
Repayment of long-term debt
Proceeds from lease financing agreement
Cash dividends paid
Exercise of stock options
Contributions from noncontrolling interests in subsidiaries
Repurchase of Common Stock
10,834
1,156
249,126
348,208
(256,189)
47,601
(304,083)
(71,548)
(283,434)
(458,047)
(8,252)
(263,403)
184,411
92,033
28,318
13,997
1,385
4,455
10,199
7,322
(384,515)
(169,099)
(9,314)
Net Cash (Used by) Financing Activities
(438,818)
(71,100)
(Decrease) Increase in Cash and Cash Equivalents
(190,956)
631,037
216,502
884,642
253,605
37,103
$693,686
$884,642
$253,605
Interest Paid
$97,892
$97,932
$91,623
Income Taxes Paid
292,315
350,948
252,230
Cash and Cash Equivalents as of January 1

Cash and Cash Equivalents as of December 31
(698,921)

2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
Net product sales

Impairment charges


Net earnings
Earnings per share

(8,740)
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
CURRENT ASSETS:
Other receivables
Inventories:
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
Dividends payable
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)


665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
14,000

Net earnings
Depreciation
Impairment charges
4,400
194
342
233
1,267
522
320
(5,448)
717

Accounts receivable
Other receivables
Inventories
3,963
(15,631)
(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)

Others
(708)

(39,252)
(9,301)
(11,331)
8,208
17,511
7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538

Income taxes paid
Interest paid
Based on the information contained in these financial statements, compute the following 2011 values
for each company. (Round answers to 1 decimal place, e.g. 15.2.)
(1)
Accounts receivable turnover. (For Tootsie Roll, use Net product sales. Assume all sales were credit
sales.)
(2) Average collection period for accounts receivable.
Tootsie Roll
Hershey Company
Accounts receivable turnover
times
times
Average collection period
days
days

Resource: WileyPLUS
Complete the following Week 2 Assignment in WileyPLUS:
Problem 8-3A
Brief Exercise 9-11
DO IT! 9-5
Exercise 9-7
Exercise 9-8
BYP 9-1
BYP 9.2
Problem 9-2A
Brief Exercise 9-11

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended
May 31, 2014 (in millions): other plant assets $937.7; land $241.9; patents and trademarks (at cost)
$537.8; machinery and equipment $2,185.8; buildings $958; goodwill (at cost) $175.6;
accumulated amortization $53.2; and accumulated depreciation $2,195.
Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in
order of Land, Buildings and Equipment.)
NIKE, INC.
Partial Balance Sheet
As of May 31, 2014
(in millions)
Do It! Review 9-5
Match the statement with the term most directly associated with it.
1.
Rights, privileges, and competitive advantages that

result from the ownership of long-lived assets that do
not possess physical substance.
2.
The allocation of the cost of an intangible asset to
expense in a rational and systematic manner.
3.
A right to sell certain products or services, or use

certain trademarks or trade names within a
designated geographic area.
4.
Costs incurred by a company that often lead to

patents or new products. These costs must be
expensed as incurred.
5.
The excess of the cost of a company over the fair

value of the net assets required.
Exercise 9-7
Wang Co. has delivery equipment that cost $56,840 and has been depreciated $23,520.
Record entries for the disposal under the following assumptions. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
(a)
It was scrapped as having no value.
(b)
It was sold for $37,330.
(c)
It was sold for $18,850.
Exercise 9-8
Here are selected 2014 transactions of Cleland Corporation.
Jan. 1
Retired a piece of machinery that was purchased on January 1, 2004. The machine cost
$61,550 and had a useful life of 10 years with no salvage value.

June 30
Sold a computer that was purchased on January 1, 2012. The computer cost $36,600 and had a
useful life of 4 years with no salvage value. The computer was sold for $4,460 cash.
Dec. 31
Sold a delivery truck for $9,170 cash. The truck cost $23,710 when it was purchased on January 1,
2011, and was depreciated based on a 5-year useful life with a $3,550 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed
of, where applicable. Cleland Corporation uses straight-line depreciation. (Record entries in the order
displayed in the problem statement. Credit account titles are automatically indented when amount
is entered. Do not indent manually.)


Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share
data)
2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Net product sales

Impairment charges
(8,740)
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078)
(17,790)
Stock dividends
(47,175)
(46,806)
(32,629)

Net earnings
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Earnings per share

Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
3,212
6,680
CURRENT ASSETS:
Other receivables
Inventories:
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Prepaid expenses
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)
Dividends payable

Common stock, $.69-4/9 par value120,000 shares authorized36,479
Class B common stock, $.69-4/9 par value40,000 shares
authorized21,025 and 20,466 respectively, issued

665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157

Net earnings
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation
19,229
18,279
17,862
Impairment charges
14,000
4,400
194
342
233
1,267
522
(5,448)
717
320

Accounts receivable
Other receivables
Inventories
3,963
(15,631)

(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(12,543)
(5,772)
2,322
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511
Others
(708)

7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538

Income taxes paid
Interest paid
Notes to Consolidated Financial Statements ($ in thousands)
PROPERTY, PLANT AND EQUIPMENT:
Depreciation is computed for financial reporting purposes by use of the straight-line method based on the
useful lives of 20 to 35 years for building and 5 to 25 years for machinery and equipment. Depreciation
expenses was $19,229, $18,279 and $17,862 in 2011, 2010 and 2009, respectively.
Goodwill and intangible assets:
In accordance with authoritative guidance, goodwill and intangible assets with indefinite lives are not
amortized, but rather tested for impairment at least annually unless certain interim triggering events or
circumstances require more frequent testing. All trademarks have been assessed by management to have
indefinite lives because they are expected to generate cash flows indefinitely. The Company has
completed its annual impairment testing of its goodwill and trademarks at December 31 of each of the
years presented. As of December 31, 2009, management ascertained that certain trademarks were
impaired, and recorded a pre-tax charge of $14,000. No impairments of intangibles were recorded in 2011
and 2010. This determination is made by comparing the carrying value of the asset with its estimated fair
value, which is calculated using estimates including discounted projected future cash flows. If the carrying
value of goodwill exceeds the fair value, a second step would measure the carrying value and implied fair
value of goodwill. Management believes that all assumptions used for the impairment tests are consistent
with those utilized by market participants performing similar valuations.
Answer the following questions.
THE HERSHEY COMPANY
2011
2010
2009
$6,080,788
$5,671,009
$5,298,668
Cost of sales
3,548,896
3,255,801
3,245,531
1,477,750
1,426,477
1,208,672
83,433
82,875
5,025,760
4,765,711
4,537,078
1,055,028
905,298
761,590
92,183
96,434
90,459
962,845
808,864
671,131
333,883
299,065
235,137
$628,962
$509,799
$435,994
$2.58
$2.08
$1.77
$2.56
$2.07
$1.77
$2.85
$2.29
$1.97
$2.74
$2.21
$1.90
$1.3800
$1.2800
$1.1900
1.2500
1.1600
1.0712

Net Sales
Costs and Expenses:

Net Income
(886)

Common Stock
THE HERSHEY COMPANY

December 31,
2011
2010
ASSETS
Current Assets:
$693,686
$884,642
399,499
390,061
Inventories
648,953
533,622
136,861
55,760
167,559
141,132
2,046,558
2,005,217
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
38,544
21,387
Other Assets
138,722
161,212
Total assets
$4,412,199
$4,272,732
Accounts payable
$420,017
$410,655
Accrued liabilities
612,186
593,308
1,899
9,402
Short-term debt
42,080
24,088
97,593
261,392
1,173,775
1,298,845
1,748,500
1,541,825
617,276
494,461
3,539,551
3,335,131
299,269
299,195
60,632
60,706
490,817
434,865
4,699,597
4,374,718
(4,258,962)
(4,052,101)



Long-term Debt
Total liabilities
2010
in 2010
Retained earnings
132,871,512 in 2010
(442,331)
(215,067)
849,022
902,316
23,626
35,285
872,648
937,601
$4,412,199
$4,272,732

THE HERSHEY COMPANY

2011
2010
2009
$628,962
$509,799
$435,994
215,763
197,116
182,411
28,341
32,055
34,927
(1,385)
(4,455)
(18,654)
(40,578)
Net income
operations:
(13,997)
33,611
(11,072)
30,838
77,935
60,823
(8,861)
(6,073)
(9,438)
20,329
46,584
(13,910)
74,000
90,434
37,228
13,777
293,272
580,867
901,423
1,065,749
(323,961)
(179,538)
(126,324)
(23,606)
(21,949)
(19,146)
(54,457)

Inventories
Accounts payable
(115,331)
7,860
(205,809)

Capital additions
312
2,201
10,364
20,000
(5,750)
(333,005)
(199,286)
(15,220)
(150,326)

Cash dividends paid
10,834
1,156
249,126
348,208
(256,189)
47,601
(304,083)
184,411
(71,548)
(283,434)
92,033
(458,047)
(8,252)
(263,403)
28,318
13,997
1,385
4,455
10,199
7,322

(384,515)
(169,099)
(9,314)
(438,818)
(71,100)
(698,921)
(190,956)
631,037
216,502
884,642
253,605
37,103
$693,686
$884,642
$253,605
Interest Paid
$97,892
$97,932
$91,623
Income Taxes Paid
292,315
350,948
252,230


2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
Net product sales

Impairment charges


Net earnings
(8,740)
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
Earnings per share
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Financial Position
Assets
December 31,
2011
2010
CURRENT ASSETS:
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
Other receivables
Inventories:
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
Dividends payable
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)


665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
Impairment charges
14,000
4,400
194
342
233
1,267
522
320
(5,448)
717

Net earnings
Depreciation

Accounts receivable
Other receivables
Inventories
3,963
(15,631)
(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
82,805
76,994

Others
(708)
50,390

(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511
7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538

Income taxes paid
Interest paid
Based on the information in these financial statements and the accompanying notes and schedules, compute
the following values for each company in 2011. (Round all percentages to 1 decimal places, e.g. 15.1%
and asset turnover ratio to 2 decimal places, e.g. 15.21.)
(1) Return on assets.
Return on assets
Tootsie Roll
Hershey Company
(2) Profit margin (use Total Revenue).
Profit margin
Tootsie Roll
Hershey Company
(3) Asset turnover.
Asset turnover
Tootsie Roll
times
Hershey Company
times
Problem 9-2A
At December 31, 2014, Navaro Corporation reported the following plant assets.
Land
$ 3,036,000
Buildings
$35,400,000
Less: Accumulated depreciationbuildings
12,068,100
Equipment
40,480,000
Less: Accumulated depreciationequipment
5,060,000
Total plant assets
23,331,900
35,420,000
$61,787,900
During 2015, the following selected cash transactions occurred.
Apr.
Purchased land for $2,226,400.
May
Sold equipment that cost $607,200 when purchased on January 1, 2008. The equipment was
sold for $172,040.
June
Sold land for $1,619,200. The land cost $1,012,000.
July
Purchased equipment for $1,113,200.
Dec. 31
Retired equipment that cost $708,400 when purchased on December 31, 2005. No salvage
value was received.
Journalize the transactions. Navaro uses straight-line depreciation for buildings and equipment. The
buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to
have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of
sale or retirement. (Record entries in the order displayed in the problem statement. Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Solution
Problem 9-2A
May 1:
Accumulated DepreciationEquipment = ($607,200 x 1/10 x 4/12) = $20,240
Cost
$607,200
Accum. depr.Equipment [($607,200 x 1/10) x 7 + $20,240)]
(445,280)
Book value
161,920
Cash proceeds
172,040
Gain on disposal
$ 10,120
Dec. 31
Accumulated DepreciationEquipment = ($708,400 x 1/10) = $70,840
Cost
$708,400
Accum. depr.Equipment ($708,400 x 1/10 x 10)
(708,400)
Book value
$0
Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Problem 8-3A
Presented below is an aging schedule for Bosworth Company.
Number of Days Past Due

Customer
Total
Aneesh
$ 24,100
Not Yet Due
Bird
45,700
$ 45,700
Cope
59,600
8,500
DeSpears
48,600
Others
Estimated percentage uncollectible
130
3160
$ 9,100
$15,000
8,900
6190
Over 90
$42,200
$48,600
156,700
88,600
43,000
25,100
$334,700
$142,800
$61,000
$40,100
$42,200
$48,600
5%
7%
14%
24%
59%
Total estimated bad debts
$ 55,826
$ 7,140
$4,270
$5,614
$ 10,128
At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $6,200.
Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically
Problem 8-3A
Post the adjusting entry for bad debts at December 31, 2013.
Bad Debts Expense
Allowance for Doubtful Accounts
Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
1. March 1, a $810 customer balance originating in 2013 is judged uncollectible.

2.
May 1, a check for $810 is received from the customer whose account was written off as uncollectible on
March 1.
Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in
the previous part.)
Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in
Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad
debts will be $36,000. (Credit account titles are automatically indented when amount is entered. Do
$28,674
not indent manually.)

Resource: WileyPLUS
Problem 9-7A
Exercise 10-5
Exercise 10-8
Exercise 10-13
Exercise 10-22
Exercise 10-24
BYP 10-1
BYP 10-2
Problem 10-9A
Problem 10-13A
IFRS 10-4
Exercise 10-5
During the month of March, Olinger Companys employees earned wages of $73,700. Withholdings
related to these wages were $5,638 for Social Security (FICA), $8,637 for federal income tax, $3,570 for
state income tax, and $461 for union dues. The company incurred no cost related to these earnings for
federal unemployment tax but incurred $806 for state unemployment tax.
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and
wages payable. Assume that wages earned during March will be paid during April. (Credit account
titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the entry to record the companys payroll tax expense. (Credit account titles are
Exercise 10-8
On August 1, 2014, Ortega Corporation issued $980,400, 6%, 10-year bonds at face value. Interest is payable
annually on August 1. Ortegas year-end is December 31.
Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically
Prepare journal entries to record the accrual of interest on December 31, 2014. (Credit account titles are
Prepare journal entries to record the payment of interest on August 1, 2015. (Credit account titles are
Exercise 10-13
Romine Company issued $531,000 of 9%, 10-year bonds on January 1, 2014, at face value. Interest is
payable annually on January 1.
Prepare the journal entries to record the issuance of the bonds. (Credit account titles are
Prepare the journal entries to record the accrual of interest on December 31, 2014. (Credit account
Prepare the journal entries to record the payment of interest on January 1, 2015. (Credit account
Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for the
last interest period has been paid and recorded. (Credit account titles are automatically indented
Exercise 10-22
Cole Corporation issued $445,000, 7%, 22-year bonds on January 1, 2014, for $360,961. This price
resulted in an effective-interest rate of 9% on the bonds. Interest is payable annually on January 1. Cole
uses the effective-interest method to amortize bond premium or discount.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Cole
Corporation. (Round answers to 0 decimal places, e.g. 125.)
Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal
places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do
Prepare the journal entries to record the accrual of interest and the discount amortization on December
31, 2014. (Round answers to 0 decimal places, e.g. 125. Credit account titles are
Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to 0
decimal places, e.g. 125. Credit account titles are automatically indented when amount is
Exercise 10-24
Nance Co. receives $327,800 when it issues a $327,800, 5%, mortgage note payable to finance the
construction of a building at December 31, 2014. The terms provide for semiannual installment payments
of $15,662 on June 30 and December 31.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Nance
Co. (Round answers to 0 decimal places, e.g. 125.)
Semiannua
l
Cash
Interest
Reduction
Principal
Interest
Payment
Expense
of Principal
Balance
Period
$
Issue date
6/30/15
12/31/15
Semiannual
(A)
Interest
Cash
Period
Payment
(B)
(C)
(D)
Interest
Reduction
Principal
Expense
of Principal
Balance
(D x 2.50%)
(A) (B)
(D) (C)
Issue date
6/30/15
12/31/15
Prepare the journal entries to record the mortgage loan. (Round answers to 0 decimal places, e.g.
125. Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2014
Prepare the journal entries to record the first two installment payments. (Round answers to 0 decimal
places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do
Date
Debit
First Installment Payment
June 30, 2015
Credit
Second Installment Payment
Dec. 31, 2015

2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
$43,938
$53,063
$53,157
Net product sales

Impairment charges
Net earnings
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
(8,740)

Net earnings
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Earnings per share

Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
CURRENT ASSETS:
Other receivables
Inventories:
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)
Dividends payable


665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
Impairment charges
14,000
4,400
194
342
233

Net earnings
Depreciation
1,267
522
(5,448)
717
320

Accounts receivable
Other receivables
3,963
Inventories
(15,631)

(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(12,543)
(5,772)
2,322
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511
Others
(708)

7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538

Income taxes paid
Interest paid
What were Tootsie Rolls total current liabilities at December 31, 2011? (Enter amount in thousands.)
Current liabilities as at December 31, 2011
What was the increase/decrease in Tootsie Rolls total current liabilities from the prior year? (Enter amount in
thousands.)
Change in current liabilities
How much were the accounts payable at December 31, 2011? (Enter amount in thousands.)
Accounts payable

THE HERSHEY COMPANY
2011
2010
2009
$6,080,788
$5,671,009
$5,298,668
Cost of sales
3,548,896
3,255,801
3,245,531
1,477,750
1,426,477
1,208,672
83,433
82,875
5,025,760
4,765,711
4,537,078
1,055,028
905,298
761,590
92,183
96,434
90,459
962,845
808,864
671,131
333,883
299,065
235,137
$628,962
$509,799
$435,994
$2.58
$2.08
$1.77
$2.56
$2.07
$1.77
$2.85
$2.29
$1.97
$2.74
$2.21
$1.90
$1.3800
$1.2800
$1.1900
1.2500
1.1600
1.0712

Net Sales
Costs and Expenses:

(886)

Net Income

Common Stock
THE HERSHEY COMPANY

December 31,
2011
2010
ASSETS
Current Assets:
$693,686
$884,642
399,499
390,061
Inventories
648,953
533,622
136,861
55,760
167,559
141,132
2,046,558
2,005,217
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
38,544
21,387
Other Assets
138,722
161,212
Total assets
$4,412,199
$4,272,732
Accounts payable
$420,017
$410,655
Accrued liabilities
612,186
593,308
1,899
9,402
Short-term debt
42,080
24,088
97,593
261,392
1,173,775
1,298,845
1,748,500
1,541,825
617,276
494,461
3,539,551
3,335,131
299,269
299,195
60,632
60,706
490,817
434,865
4,699,597
4,374,718
(4,258,962)
(4,052,101)
(442,331)
(215,067)
849,022
902,316
23,626
35,285
872,648
937,601
$4,412,199
$4,272,732



Long-term Debt
Total liabilities
2010
in 2010
Retained earnings
132,871,512 in 2010
THE HERSHEY COMPANY

2011
2010
2009
$628,962
$509,799
$435,994
215,763
197,116
182,411
28,341
32,055
34,927
(1,385)
(4,455)
(18,654)
(40,578)
Net income
operations:
(13,997)
33,611
(11,072)
30,838
77,935
60,823
(8,861)
(6,073)
(9,438)
20,329
46,584
(13,910)
74,000
90,434
37,228
13,777
293,272
580,867
901,423
1,065,749
(323,961)
(179,538)
(126,324)
(23,606)
(21,949)
(19,146)
(54,457)

Inventories
Accounts payable
(115,331)
7,860
(205,809)

Capital additions
312
2,201
10,364
20,000
(5,750)
(333,005)
(199,286)
(15,220)
(150,326)

Cash dividends paid
10,834
1,156
249,126
348,208
(256,189)
47,601
(304,083)
(71,548)
(283,434)
(458,047)
(8,252)
(263,403)
184,411
92,033
28,318
13,997
1,385
4,455
10,199
7,322
(384,515)
(169,099)
(9,314)
(438,818)
(71,100)
(698,921)
(190,956)
631,037
216,502
884,642
253,605
37,103
$693,686
$884,642
$253,605
Interest Paid
$97,892
$97,932
$91,623
Income Taxes Paid
292,315
350,948
252,230

2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
Net product sales

Impairment charges
(8,740)

Net earnings
Earnings per share

$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
CURRENT ASSETS:
Other receivables
Inventories:
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
Dividends payable
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)

665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
Impairment charges
14,000
4,400
194
342
233
1,267
522
320
(5,448)
717

Net earnings
Depreciation

Accounts receivable
Other receivables
Inventories
3,963
(15,631)
(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511

Others
(708)

7,680
(51,157)
(16,808)
(16,364)

(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538

Income taxes paid
Interest paid
NOTE 6OTHER INCOME (EXPENSE), NET:

Other income (expense), net is comprised of the following:
2011
Interest and dividend income
Gains (losses) on trading securities relating to deferred compensation plans
Interest expense
Impairment of equity method investment.
2010
2009
$1,087
$879
$1,439
29
3,364
4,524
(121)
(142)
(243)
_ (4,400)
Equity method investment loss
(194)
(342)
(233)
Foreign exchange gains (losses)
2,098
4,090
951
Capital gains (losses)
(277)
(28)
(38)
274
537
100
$2,946 $8,358
$2,100
Miscellaneous, net
As of December 31, 2009, management determined that the carrying value of an equity method investment was
impaired as a result of accumulated losses from operations and review of future expectations. The Company
recorded a pre-tax impairment charge of $4,400 resulting in an adjusted carrying value of $4,961 as of
December 31, 2009. The fair value was primarily assessed using the present value of estimated future cash
flows.
Based on the information contained in these financial statements, compute the current ratio for 2011 for each
company. (Round answers to 2 decimal places, e.g. 15.25.)
Hershey
Current ratio
Tootsie Roll
:1
:1
Based on the information contained in these financial statements, compute

the following 2011 ratios for each company. (Round answers to 1 decimal
places, e.g. 15.2% or 15.2 times.)

(1) Debt to assets.
(2)
Times interest earned. (Hersheys total interest expense for 2011 was $94,780,000. See Tootsie Rolls Note
6 for its interest expense.)
Hershey
Tootsie Roll
Debt to assets
Times interest earned
times
times
Problem 9-7A
In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in
the accounting department, a different accountant was in charge of selecting the depreciation method for
each machine, and various methods have been used. Information concerning the machines is summarized
in the table below.
Cost
Salvage
Useful Life
Depreciation
Value
(in years)
Method
Machine
Acquired
Jan. 1, 2012
$126,000
$39,600
Straight-line
July 1, 2013
89,000
11,800
Declining-balance
Nov. 1, 2013
101,610
7,110
Units-of-activity
For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity
method, total machine hours are expected to be 35,000. Actual hours of use in the first 3 years were:
2013, 800; 2014, 3,950; and 2015, 5,500.
Compute the amount of accumulated depreciation on each machine at December 31, 2015.
MACHINE 1
MACHINE 2
$
Accumulated Depreciation
MACHINE 3
$
at December 31
Solution
CLOSE
Problem 9-7A
Year
Computation
Accumulated
Depreciation 12/31
MACHINE 1
a
2012
$86,400 x 1/8 = $10,800
2013
$86,400 x 1/8 = $10,800
$10,800
21,600
2014
$86,400 x 1/8 = $10,800
32,400
2015
$86,400 X 1/8 = $10,800
43,200
MACHINE 2
2013
$89,000 x 40%b x 6/12 = $17,800
2014
$71,200 x 40% = $28,480
46,280
2015
$42,720 x 40% = $17,088
63,368
2013
800 x $2.70c = $ 2,160
$ 2,160
2014
3,950 x $2.70 = 10,665
12,825
2015
5,500 x $2.70 = 14,850
27,675
$17,800
MACHINE 3
($126,000 $39,600) = $86,400
(1/5) x 2 = 40%
($101,610 $7,110) 35,000 = $2.70
If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this
machine in 2013? In 2014?
2013
Depreciation Expense
2014
Problem 10-9A
Wempe Co. sold $3,012,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1,
2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and
discounts. Financial statements are prepared annually.
Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 104 and
(2) 96. (Credit account titles are automatically indented when amount is entered. Do not
indent manually.)
No.
Date
1.
1/1/14
2.
1/1/14
Debit
Credit
Prepare amortization tables for issuance of the bonds sold at 104 for the first three interest payments.
Annual
Interes
t
Period
Interest to
Interest Expense
Premium
Unamortized
Bond
Be Paid
to Be Recorded
Amortization
Premium
Carrying Value
s
$
Issue
date
Prepare amortization tables for issuance of the bonds sold at 96 for the first three interest payments.
Annual
Interes
t
Period
Interest to
Interest Expense
Premium
Unamortized
Bond
Be Paid
to Be Recorded
Amortization
Premium
Carrying Value
s
$
Issue
date
2891520
240960
253008
12048
108432
2903568
240960
253008
12048
96384
2915616
240960
253008
12048
84336
2927664
Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 104 at December 31,
2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 96 at December 31,
2014.
WEMPE Co.
December 31, 2014
Problem 10-13A
Grace Herron has just approached a venture capitalist for financing for her new business venture, the
development of a local ski hill. On July 1, 2013, Grace was loaned $168,000 at an annual interest rate
of 5%. The loan is repayable over 5 years in annual installments of $38,804, principal and interest, due
each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for
amortizing debt. Her ski hill companys year-end will be June 30.
Prepare an amortization schedule for the 5 years, 20132018. (Round answers to 0 decimal places,
e.g. 125.)
Period
July 1,
2013
June
30,
2014
June
30,
2015
Cash
Interest
Principal
Payment
Expense
Reduction
Balance
$
June
30,
2016
June
30,
2017
June
30,
-1
2018
Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30,
2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented
Show the balance sheet presentation of the note payable as of June 30, 2015. (Hint: Be sure to distinguish
between the current and long-term portions of the note.) (Round answers to 0 decimal places, e.g. 125.)
GRACE HERRON
June 30, 2015
IFRS 10-4
Ratzlaff Company issues 2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January
1.
Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles
are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
Assuming instead that the above bonds sold for 104, prepare the journal entry to record the sale of these
bonds on January 1, 2014. (Credit account titles are automatically indented when the amount is
Date Account Titles and Explanation
Debit
Credit
Jan. 1

Resource: WileyPLUS
Do It! 11-1
Exercise 11-5
Exercise 11-07
BYP 11-1
BYP 11-2
Problem 11-5A
Problem 11-8A
Do It! Review 11-1
Indicate whether each of the following statements is true or false.
1.
The corporation is an entity separate and distinct from its owners.
2.
The liability of stockholders is normally limited to their investment in the corporation.
3.
The relative lack of government regulation is an advantage of the corporate form of

business.
4.
There is no journal entry to record the authorization of capital stock.
5.
No-par value stock is quite rare today.
Exercise 11-5
Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships.
Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about
corporation accounting. During the first month, he made the following entries for the corporations capital stock.
May 2
Cash
113,680
Capital Stock
113,680
(Issued 8,120 shares of $11 par value common stock at $14 per share)
10
Cash
637,740
Capital Stock
637,740
(Issued 11,810 shares of $19 par value preferred stock at $54 per share)
15
Capital Stock
Cash
(Purchased 590 shares of common stock for the treasury at $13 per share)
On the basis of the explanation for each entry, prepare the entries that should have been made for the capital
stock transactions. (Record entries in the order displayed in the problem statement. Credit account
CLOSE
Exercise 11-7
On October 31, the stockholders equity section of Pele Companys balance sheet consists of common stock
$377,200 and retained earnings $438,500.
Pele is considering the following two courses of action:

(1)
Declaring a 7% stock dividend on the 94,300 $4 par value shares outstanding
(2)
Effecting a 2-for-1 stock split that will reduce par value to $2 per share.
The current market price is $16 per share.
Prepare a tabular summary of the effects of the alternative actions on the companys stockholders equity and
outstanding shares.
7,670
7,670
The stockholders equity section of Tootsie Roll Industries balance sheet is shown in the Consolidated
Statement of Financial Position. (Note that Tootsie Roll has two classes of common stock. To answer
the following questions, add the two classes of stock together.)

2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
Net product sales

Impairment charges
(8,740)

Net earnings
Earnings per share

$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
CURRENT ASSETS:
Other receivables
Inventories:
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
Dividends payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046

25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)


665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
Impairment charges
14,000
4,400

Net earnings
Depreciation

194
342
233
1,267
522
320
(5,448)
717

Accounts receivable
Other receivables
Inventories
3,963
(15,631)
(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511

Others
(708)

7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538

Income taxes paid
Interest paid
What is the par or stated value per share of Tootsie Rolls common stock? (Round answer to 4 decimal
places, e.g. 1.2531.)
Par or stated value per share
The common stock has a par value of $0.69-4/9 or $0.6944 per share.
What percentage of Tootsie Rolls authorized common stock was issued at December 31, 2011?(Round to 0
decimal places, e.g. 17%)
Percentage of common stock issued
There are 160 million shares authorized (120 million class A and 40 million class B) of which 57,504,000
(36,479,000 + 21,025,000) are issued. The percentage is 36% (57,504,000 160,000,000).
How many shares of common stock were outstanding at December 31, 2010, and at December 31,
2011? (Enter the answers in thousands.)
2011
2010
Number of shares outstanding
Calculate the payout ratio, earnings per share, and return on common stockholders equity for 2011. (Round
earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal places, e.g.
12.5%.)
The financial statements of

presented below.
The Hershey Company
and
Tootsie Roll
are
THE HERSHEY COMPANY

2011
2010
2009
$6,080,788
$5,671,009
$5,298,668
Cost of sales
3,548,896
3,255,801
3,245,531
1,477,750
1,426,477
1,208,672
83,433
82,875
5,025,760
4,765,711
4,537,078
1,055,028
905,298
761,590
92,183
96,434
90,459
962,845
808,864
671,131
333,883
299,065
235,137
$628,962
$509,799
$435,994
$2.58
$2.08
$1.77
$2.56
$2.07
$1.77
$2.85
$2.29
$1.97
$2.74
$2.21
$1.90
$1.3800
$1.2800
$1.1900
1.2500
1.1600
1.0712

Net Sales
Costs and Expenses:

(886)

Net Income

Common Stock
THE HERSHEY COMPANY

December 31,
2011
2010
ASSETS
Current Assets:
$693,686
$884,642
399,499
390,061
Inventories
648,953
533,622
136,861
55,760
167,559
141,132
2,046,558
2,005,217
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
38,544
21,387
Other Assets
138,722
161,212
Total assets
$4,412,199
$4,272,732
Accounts payable
$420,017
$410,655
Accrued liabilities
612,186
593,308


1,899
9,402
Short-term debt
42,080
24,088
97,593
261,392
1,173,775
1,298,845
1,748,500
1,541,825
617,276
494,461
3,539,551
3,335,131
299,269
299,195
60,632
60,706
490,817
434,865
4,699,597
4,374,718
(4,258,962)
(4,052,101)
(442,331)
(215,067)
849,022
902,316
23,626
35,285
872,648
937,601
$4,412,199
$4,272,732

Long-term Debt
Total liabilities
2010
in 2010
Retained earnings
132,871,512 in 2010
THE HERSHEY COMPANY

2011
2010
2009
$628,962
$509,799
$435,994
Net income

operations:
215,763
197,116
182,411
28,341
32,055
34,927
(1,385)
(4,455)
(18,654)
(40,578)
(13,997)
33,611
(11,072)
30,838
77,935
60,823
(8,861)
(6,073)
(9,438)
20,329
46,584
(13,910)
74,000
90,434
37,228
13,777
293,272
580,867
901,423
1,065,749
(323,961)
(179,538)
(126,324)
(23,606)
(21,949)
(19,146)

(54,457)

Inventories
(115,331)
Accounts payable
7,860
(205,809)

Capital additions
312
2,201
10,364
20,000
(5,750)
(333,005)
(199,286)
(15,220)
(150,326)

10,834
1,156
249,126
348,208
(256,189)

Cash dividends paid
47,601
(304,083)
184,411

(71,548)
(283,434)
(458,047)
(8,252)
(263,403)
92,033
28,318
13,997
1,385
4,455
10,199
7,322
(384,515)
(169,099)
(9,314)
(438,818)
(71,100)
(698,921)
(190,956)
631,037
216,502
884,642
253,605
37,103
$693,686
$884,642
$253,605
Interest Paid
$97,892
$97,932
$91,623
Income Taxes Paid
292,315
350,948
252,230


2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078 )
(17,790 )
Stock dividends
(47,175)
(46,806 )
(32,629 )
Net product sales

Impairment charges
(8,740)

Net earnings
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Earnings per share

Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
CURRENT ASSETS:
Other receivables
Inventories:
42,676
35,416
29,084
21,236
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
74,209
74,441
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
Prepaid expenses
Land
OTHER ASSETS:
Goodwill
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
Dividends payable

114,269
135,866
(19,953)
(11,213)
(1,992)
(1,992)

665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
Impairment charges
14,000
4,400
194
342
233
1,267
522
320
(5,448)
717

Net earnings
Depreciation

Accounts receivable
Other receivables
Inventories
3,963
(15,631)
(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511

Others
(708)

7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990

Income taxes paid
Interest paid
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538
Based on the information in these financial statements, compute the 2011 return on common stockholders
equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places,
e.g. 15.2%.)
Compute the payout ratio for each company. Which pays out a higher
percentage of its earnings? (Round answers to 1 decimal places, e.g.
15.2%.)
Hershey Company
Payout ratio
Tootsie Roll
%
Which pays out a higher percentage of its earnings?

pays out a higher percentage of its earnings.
Problem 11-5A
Pringle Corporation has been authorized to issue 22,900 shares of $100 par value, 8%, noncumulative
preferred stock and 1,162,100 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger
contained the following balances pertaining to stockholders equity.
Preferred Stock
Paid-in Capital in Excess of Par ValuePreferred Stock
$152,900
20,340
Common Stock
2,270,000
Paid-in Capital in Excess of Stated ValueCommon Stock
1,617,000
Treasury Stock (5,480 common shares)
65,760
Retained Earnings
82,300
The preferred stock was issued for $173,240 cash. All common stock issued was for cash. In
November 5,480 shares of common stock were purchased for the treasury at a per share cost of $12. No
dividends were declared in 2014.
Prepare the journal entries for the following. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(1)
Issuance of preferred stock for cash.
(2)
Issuance of common stock for cash.
(3)
Purchase of common treasury stock for cash.
Problem 11-8A
On January 1, 2014, Everett Corporation had these stockholders equity accounts.
Common Stock ($10 par value, 69,700 shares issued and outstanding)
$697,000
Paid-in Capital in Excess of Par Value
484,300
Retained Earnings
684,900
During the year, the following transactions occurred.
Jan. 15
Declared a $0.50 cash dividend per share to stockholders of record on January 31, payable
February 15.
Feb. 15
Paid the dividend declared in January.
Apr. 15
Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On
April 15, the market price of the stock was $13 per share.
May 15
Issued the shares for the stock dividend.
Dec. 1
Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable
January 10, 2015.
Dec. 31
Determined that net income for the year was $401,800.
ACC 291 Week 4 Comparing IFRS to GAAP Essay

Write a 700- to 1,050-word summary of the team's discussion about IFRS versus GAAP, based on your
team collaborative discussions. The summary should be structured in a subject-by-subject format. An
introduction and a conclusion are needed. Your essay should include the answers to the following:
IFRS 8-1: What are some steps taken by both the FASB and IASB to move to fair value
measurement for financial instruments? In what ways have some of the approaches differed?
IFRS 9-1: What is component depreciation, and when must it be used?
IFRS 9-2: What is revaluation of plant assets? When should revaluation be applied?
IFRS 9-3: Some product development expenditures are recorded as development expenses
and others as development costs. Explain the difference between these accounts and how a
company decides which classification is appropriate.
IFRS 10-2: Explain how IFRS defines a contingent liability and provide an example.
IFRS10-3: Briefly describe some similarities and differences between GAAP and IFRS with
respect to the accounting for liabilities.
Format your essay consistent with APA guidelines.

Use the Financial Accounting text and at least two additional scholarly-reviewed references.
Click the Assignment Files tab to submit your assignment.

Resource: WileyPLUS
Exercise 7-3
Exercise 12-1
Problem 12-9A
Problem 12-10A
IFRS 13-1
Problem 13-2A
BYP 13-2
Exercise 12-1
Putnam Corporation had these transactions during 2014.
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities,
investing activities, financing activities, or noncash investing and financing activities.
Purchased a machine for $30,000,
(a)
giving a long-term note in

exchange.
(b)
Issued $50,000 par value common

stock for cash.
Issued $200,000 par value common

(c)
stock upon conversion of bonds

having a face value of $200,000.
(d)
(e)
(f)
(g)
Declared and paid a cash dividend

of $13,000.
Sold a long-term investment with a

cost of $15,000 for $15,000 cash.
Collected $16,000 of accounts

receivable.
Paid $18,000 on accounts payable.
IFRS 13-1
Ling Company reports the following information for the year ended December
31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating
expenses $200,000, and an unrealized gain on non-trading securities of
$75,000. Prepare a statement of comprehensive income using the
one-statement approach.
Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 167,256
$ 100,188
Accounts receivable
181,746
78,660
Inventory
232,875
212,900
58,788
53,820
Long-term investments
285,660
225,630
Plant assets
589,950
501,975
(103,500 )
(107,640 )
Prepaid expenses
Accumulated depreciation
Total
$1,412,775
$1,065,533
$ 211,140
$ 139,311
34,155
43,470
Bonds payable
227,700
302,220
Common stock
455,400
362,250
Retained earnings
484,380
218,282
$1,412,775
$1,065,533
Liabilities and Stockholders Equity

Accounts payable
Accrued expenses payable
Total
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$804,112
Less:
Cost of goods sold
$280,402
Operating expenses, excluding depreciation
25,689
Depreciation expense
96,255
Income tax expense
56,470
Interest expense
9,791
Loss on disposal of plant assets
15,525
Net income
484,132
$ 319,980
Additional information:
1.
2.
New plant assets costing $207,000 were purchased for cash during the year.
Old plant assets having an original cost of $119,025 and accumulated depreciation of $100,395 were sold
for $3,105 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $53,882 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with
either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 186,648
$ 111,804
Accounts receivable
202,818
87,780
Inventory
259,875
237,584
65,604
60,060
318,780
251,790
Prepaid expenses
Long-term investments
Plant assets
Accumulated depreciation
Total
658,350
560,175
(115,500 )
(120,120 )
$1,576,575
$1,189,073
$ 235,620
$ 155,463
38,115
48,510
Bonds payable
254,100
337,260
Common stock
508,200
404,250
Retained earnings
540,540
243,590
$1,576,575
$1,189,073

Accounts payable
Accrued expenses payable
Total
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$897,343
Less:
Cost of goods sold
Operating expenses, excluding depreciation
Depreciation expense
$312,913
28,667
107,415
Income taxes
63,017
Interest expense
10,926
Loss on disposal of plant assets
17,325
Net income
540,263
$ 357,080
Additional information:
1.
2.
New plant assets costing $231,000 were purchased for cash during the year.
Old plant assets having an original cost of $132,825 and accumulated depreciation of $112,035 were sold
for $3,465 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $60,130 was declared and paid during the year.
Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease
cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Problem 13-2A
The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY
Income Statements
For the Years Ended December 31
2014
2013
$1,898,996
$1,758,956
1,066,996
1,014,456
Gross profit
832,000
744,500
Selling and administrative expenses
508,456
487,456
Income from operations
323,544
257,044
23,377
21,377
300,167
235,667
93,377
74,377
$ 206,790
$ 161,290
Net sales
Cost of goods sold
Other expenses and losses

Interest expense
Income before income taxes
Income tax expense
Net income
OSBORNE COMPANY
Balance Sheets
December 31
Assets
2014
2013
Current assets
Cash
$ 60,100
$ 64,200
74,000
50,000
Accounts receivable
126,256
111,256
Inventory
127,377
116,877
387,733
342,333
660,464
531,764
$1,048,197
$874,097
$ 168,456
$153,856
44,877
43,377
213,333
197,233
231,464
211,464
444,797
408,697
Debt investments (short-term)

Plant assets (net)
Total assets
Current liabilities
Accounts payable
Income taxes payable
Bonds payable
Total liabilities
Stockholders equity
Common stock ($5 par)
290,000
300,000
Retained earnings
313,400
165,400
603,400
465,400
$1,048,197
$874,097

Total liabilities and stockholders equity
All sales were on account. Net cash provided by operating activities for
2014 was $250,780. Capital expenditures were $136,700, and cash dividends
were $58,790.
Compute the following ratios for 2014.
(Round all answers to 2 decimal
places, e.g. 1.83 or 12.61%.)
Exercise 7-3
The following control procedures are used in Kelton Company for over-the-counter cash receipts.
(a) For each procedure, explain the weakness in internal control and identify the control principle that is
violated.
Procedure
Weakness
Principle Violated
1Each store
. manager
is
responsibl
e for
interviewi
ng
applicants
for cashier
Human resource controls
jobs. They
are hired if
they seem
honest
and
trustworth
y.
2All
. over-the-c
Establishment of responsibility
ounter
receipts
are
registered
by three
clerks who
share a
cash
register
with a
single
cash
drawer.
3To
. minimize
the risk of
robbery,
cash in
excess of
$100 is
stored in
an
unlocked
attach
case in the
stock
room until
it is
deposited
in the
bank.
4At the end
Physical controls
. of each
Independent internal verification
day the
total
receipts
are
counted
by the
cashier on
duty and
reconciled
to the
cash
register
total.
5The
. company
Segregation of duties
accountan
t makes
the bank
deposit
and then
records
the days
receipts.

THE HERSHEY COMPANY

2011
2010
2009
$6,080,788
$5,671,009
$5,298,668
Cost of sales
3,548,896
3,255,801
3,245,531
1,477,750
1,426,477
1,208,672

Net Sales
Costs and Expenses:
Business realignment and impairment (credits)
(886)
83,433
82,875
5,025,760
4,765,711
4,537,078
1,055,028
905,298
761,590
92,183
96,434
90,459
962,845
808,864
671,131
333,883
299,065
235,137
$628,962
$509,799
$435,994
$2.58
$2.08
$1.77
$2.56
$2.07
$1.77
$2.85
$2.29
$1.97
$2.74
$2.21
$1.90
$1.3800
$1.2800
$1.1900
1.2500
1.1600
1.0712
charges, net
Net Income
Net Income Per ShareBasicClass B Common
Stock
Net Income Per ShareDilutedClass B Common
Stock

Common Stock
The notes to consolidated financial statements are an integral part of these statements and are included
in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
THE HERSHEY COMPANY

December 31,
2011
2010
ASSETS
Current Assets:
$693,686
$884,642
399,499
390,061
Inventories
648,953
533,622
136,861
55,760
167,559
141,132
2,046,558
2,005,217
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
38,544
21,387
Other Assets
138,722
161,212
Total assets
$4,412,199
$4,272,732
Accounts payable
$420,017
$410,655
Accrued liabilities
612,186
593,308


1,899
9,402
Short-term debt
42,080
24,088
97,593
261,392
1,173,775
1,298,845
1,748,500
1,541,825
617,276
494,461
3,539,551
3,335,131
299,269
299,195
60,632
60,706
490,817
434,865
4,699,597
4,374,718
(4,258,962)
(4,052,101)
(442,331)
(215,067)
849,022
902,316
23,626
35,285
872,648
937,601
$4,412,199
$4,272,732

Long-term Debt
Total liabilities
Common Stock, shares issued: 299,269,702 in 2011 and
299,195,325 in 2010
Class B Common Stock, shares issued: 60,632,042 in 2011 and
60,706,419 in 2010
Retained earnings
132,871,512 in 2010
THE HERSHEY COMPANY

2011
2010
2009
$628,962
$509,799
$435,994
215,763
197,116
182,411
28,341
32,055
34,927
(1,385)
(4,455)
(18,654)
(40,578)
Cash Flows Provided from (Used by) Operating
Activities
Net income
Adjustments to reconcile net income to net cash provided
from operations:
Gain on sale of trademark licensing rights, net of tax of
$5,962
(13,997)
33,611
(11,072)
30,838
77,935
60,823
(8,861)
(6,073)
(54,457)
(9,438)
20,329
46,584
(13,910)
74,000
90,434
37,228
13,777
293,272
580,867
901,423
1,065,749
(323,961)
(179,538)
(126,324)
(23,606)
(21,949)
(19,146)

Inventories
(115,331)
Accounts payable
7,860
(205,809)

Cash Flows Provided from (Used by) Investing
Activities
Capital additions
312
2,201
10,364
20,000
(5,750)
(333,005)
(199,286)
(15,220)
(150,326)
Cash Flows Provided from (Used by) Financing

Activities
10,834
1,156
249,126
348,208
(256,189)
(71,548)
47,601
Cash dividends paid
(304,083)

(8,252)
(283,434)
(263,403)
184,411
92,033
28,318
13,997
1,385
4,455
10,199
7,322

(458,047)
(384,515)
(169,099)
(9,314)
(438,818)
(71,100)
(698,921)
(190,956)
631,037
216,502
884,642
253,605
37,103
$693,686
$884,642
$253,605
Interest Paid
$97,892
$97,932
$91,623
Income Taxes Paid
292,315
350,948
252,230


Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share
data)
Net product sales

2011
2010
2009
$528,369
$517,149
$495,592
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
365,225
349,334
319,775
1,038
1,088
852
Total costs
366,263
350,422
320,627
163,144
167,815
175,817
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
108,276
106,316
103,755
14,000
57,966
64,710
60,949
2,946
8,358
2,100
60,912
73,068
63,049
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
1,183
2,845
$35,198
$54,246
$56,002
$135,866
$147,687
$144,949
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078)
(17,790)
Stock dividends
(47,175)
(46,806)
(32,629)
Impairment charges
(8,740)

Net earnings
$114,269
$135,866
$147,687
$0.76
$0.90
$0.89
57,892
58,685
59,425
Earnings per share

Financial Position
Assets
December 31,
2011
2010
$78,612
$115,976
Investments
10,895
7,996
41,895
37,394
3,391
9,961
42,676
35,416
29,084
21,236
CURRENT ASSETS:
Other receivables
Inventories:
Prepaid expenses
5,070
6,499
578
689
212,201
235,167
21,939
21,696
Buildings
107,567
102,934
322,993
307,178
2,598
9,243
455,097
440,974
242,935
225,482
212,162
215,492
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461

Land
OTHER ASSETS:
Goodwill
74,209
74,441
Prepaid expenses
3,212
6,680
3,935
4,254
7,715
9,203
433,493
407,300
$857,856
$857,959
Total other assets

Total assets
December 31,
2011
2010
Accounts payable
$10,683
$9,791
4,603
4,529
Accrued liabilities
43,069
44,185
58,355
58,505
43,521
47,865
26,108
20,689
7,500
7,500
8,345
9,835
48,092
46,157
133,566
132,046
25,333
25,040
14,601
14,212
533,677
505,495
114,269
135,866
(19,953)
(11,213)
Dividends payable

Common stock, $.69-4/9 par value120,000 shares authorized36,479
Class B common stock, $.69-4/9 par value40,000 shares
authorized21,025 and 20,466 respectively, issued
(1,992)

(1,992)
665,935
667,408
$857,856
$857,959

2011
2010
2009
$43,938
$53,063
$53,157
19,229
18,279
17,862
14,000

Net earnings
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation
Impairment charges
4,400
194
342
233
1,267
522
320
(5,448)
717

Accounts receivable
Other receivables
Inventories
3,963
(15,631)
(2,373)
(1,447)
(5,899)
(2,088)
455
5,106
4,936
5,203
84
2,180
(2,755)
(5,772)
2,322
(12,543)
2,022
1,429
1,384
2,146
2,525
2,960
310
305
50,390
82,805
76,994
(16,351)
(12,813)
(20,831)
(3,234)
(2,902)
(1,713)
(39,252)
(9,301)
(11,331)
8,208
17,511

Others
(708)

7,680
(51,157)
(16,808)
(16,364)
(18,190)
(22,881)
(20,723)
(18,407)
(18,130)
(17,825)
(36,597)
(41,011)
(38,548)
(37,364)
24,986
22,082
115,976
90,990
68,908
$78,612
$115,976
$90,990

Income taxes paid
Interest paid
$16,906
$20,586
$22,364
$38
$49
$182
$47,053
$46,683
$32,538
Based on the information in the financial statements, determine each of the following for each company:
ACC 291 Week 5 Final Examination

Multiple Choice Question 86
An aging of a company's accounts receivable indicates that $4,500 are estimated to be

uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to
record bad debts for the period will require a
debit to Allowance for Doubtful Accounts for $3,300.

debit to Bad Debt Expense for $4,500.
debit to Bad Debt Expense for $3,300.
credit to Allowance for Doubtful Accounts for $4,500.

Correct.
The financial statements of the Melton Manufacturing Company reports net sales of $300,000
and accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year,
respectively. What is the average collection period for accounts receivable in days?
36.5
60.8
96.1
48.7

Correct.
Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount
by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that
the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses
straight-line depreciation, annual depreciation will be
$3,760.
$4,072.
$4,100.
$6,100.

Correct.
On January 1, a machine with a useful life of five years and a residual value of $40,000 was
purchased for $120,000. What is the depreciation expense for year 2 under the
double-declining-balance method of depreciation?
$48,000.
$23,040.
$38,400.
$28,800.
IFRS Multiple Choice Question 01

Correct.
As a recent graduate of State University you're aware that IFRS requires component depreciation
for plant assets. A friend has asked you to succinctly explain what component depreciation
means. Which of the following correctly describes component depreciation?
The method used to prorate annual depreciation on a time basis.

The method that requires that significant parts of a plant asset with different useful lives be
depreciated separately.
The method used to ensure that the depreciation rate remains constant from year to year.
The method of depreciation recommended for an asset that is expected to be significantly more
productive in the first half of its useful life.

Correct.
Given the following account balances at year end, compute the total intangible assets on the
balance sheet of Janssen Enterprises.
Cash $1,500,000
Accounts Receivable
4,000,000
Trademarks 1,000,000
Goodwill 2,500,000
Research & Development Costs 2,000,000
$5,500,000.
$7,500,000.
$3,500,000.
$9,500,000.
Correct.
Bonds with a face value of $300,000 and a quoted price of 97 have a selling price of
$292,500.
$291,750.
$291,006.
$291,075.
Correct.
Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2013.
The bonds had a face value of $400,000, pay interest annually on December 31st, and have a call
price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of
the bonds on January 1, 2015?
$381,600
$418,400
$400,000
$420,700
Correct.
S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was
reached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 by issuing
8,000 shares of its common stock (par $1). The stock trades on a daily basis and the market price
of the stock on the day the debt was settled is $1.80 per share. Given this information, the best
journal entry for E. Corp. to record for this transaction is
Legal Expense 14,400

Common Stock
14,400

Common Stock
15,000

Common Stock
8,000
Paid-in Capital in Excess of Par - Common
7,000

Common Stock
8,000
Paid-in Capital in Excess of Par - Common
6,400

Correct.
Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share.
The entry to record the transaction will consist of a debit to Cash for $3,000,000 and a credit or
credits to
Preferred Stock for $2,500,000 and Paid-in Capital in Excess of Par ValuePreferred Stock for
$500,000.
Preferred Stock for $2,500,000 and Retained Earnings for $500,000.
Preferred Stock for $3,000,000.
Paid-in Capital from Preferred Stock for $3,000,000.

Correct.
Jahnke Corporation issued 8,000 shares of 2 par value ordinary shares for 11 per share. The
journal entry to record the sale will include
a debit to Cash for 16,000.

a credit to Share PremiumOrdinary for 72,000.
a credit to Share CapitalOrdinary for 88,000.
a debit to Retained Earnings for 72,000.
Zoum Corporation had the following transactions during 2014:

1.
Issued $125,000 of par value common stock for cash.
2.
Recorded and paid wages expense of $60,000.
3.
Acquired land by issuing common stock of par value $50,000.
4.
Declared and paid a cash dividend of $10,000.
5.
Sold a long-term investment (cost $3,000) for cash of $3,000.
6.
Recorded cash sales of $400,000.
7.
Bought inventory for cash of $160,000.
8.
Acquired an investment in Zynga stock for cash of $21,000.
9.
Converted bonds payable to common stock in the amount of $500,000.
10.
Repaid a 6 year note payable in the amount of $220,000.
What is the net cash provided by financing activities?
$395,000.
$<605,000>.
$<105,000>.
$115,000.
Correct.
Colie Company had an increase in inventory of $120,000. The cost of goods sold was $490,000.
There was a $30,000 decrease in accounts payable from the prior period. Using the direct
method of reporting cash flows from operating activities, what were Colie's cash payments to
suppliers?
$640,000.
$310,000.
$580,000.
$370,000.
Each of the following items may be classified as operating or financing activities under IFRS
except
dividends paid.
interest paid.
all of these answer choices may be classified as such.
dividends received.
Correct.
The current assets of Orangatte Company are $227,500. The current liabilities are $130,000. The
current ratio expressed as a proportion is
$210,000 $120,000.
1.75:1.
175%.
.57:1.
All of the following requirements about internal controls were enacted under the Sarbanes Oxley
Act of 2002 except:
companies must continually assess the functionality of internal controls.

independent outside auditors must eliminate redundant internal control.
independent outside auditors must attest to the level of internal control.
companies must develop sound internal controls over financial reporting.

Which of the following is not an internal control activity for cash?
The functions of record keeping and maintaining custody of cash should be combined.
The number of persons who have access to cash should be limited.
Surprise audits of cash on hand should be made occasionally.
All cash receipts should be recorded promptly.

Before a check authorization is issued, the following documents must be in agreement, except for
the
receiving report.
purchase order.
invoice.
remittance advice.
Correct.
Mitchell Corporation bought equipment on January 1, 2014 .The equipment cost $180,000 and
had an expected salvage value of $30,000. The life of the equipment was estimated to be 6 years.
The book value of the equipment at the beginning of the third year would be
$130,000.
$50,000.
$180,000.
$150,000.
Correct.
Brevard Corporation purchased a taxicab on January 1, 2013 for $25,500 to use for its shuttle
business. The cab is expected to have a five-year useful life and no salvage value. During 2014, it
retouched the cab's paint at a cost of $1,200, replaced the transmission for $3,000 (which
extended its life by an additional 2 years), and tuned-up the motor for $150. If Brevard
Corporation uses straight-line depreciation, what annual depreciation will Brevard report for
2014?
$4,100.
$4,125.
$3,900.
$5,100.
Correct.
If a plant asset is retired and is fully depreciated
phantom depreciation must be taken as though the asset were still on the books.
a loss on disposal will be recorded.
no gain or loss on disposal will be recorded.
a gain on disposal will be recorded.
On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for
$140,000. It is estimated that the copyright will have a useful life of 5 years. The amount of
Amortization Expense recognized for the year 2014 would be
$28,000.
$13,125.
$25,900.
$14,000.
Correct.
The following totals for the month of April were taken from the payroll records of Metz Company.
Salaries $30,000
FICA taxes withheld 2,295
Income taxes withheld 6,600
Medical insurance deductions
1,200
Federal unemployment taxes 240
State unemployment taxes 1,500
The entry to record accrual of employers payroll taxes would include a
credit to FICA Taxes Payable for $1,740.

debit to Payroll Tax Expense for $4,035.
credit to Payroll Tax Expense for $4,035.
credit to Payroll Tax Expense for $1,740.
Thayer Company purchased a building on January 2 by signing a long-term $2,520,000 mortgage

with monthly payments of $23,100. The mortgage carries an interest rate of 10 percent. The
amount owed on the mortgage after the first payment will be
$2,517,900.
$2,499,000.
$2,496,900.
$2,520,000.
The following data is available for BOX Corporation at December 31, 2014:
Common stock, par $10 (authorized 30,000 shares) $250,000
Treasury stock (at cost $15 per share) $1,200
Based on the data, how many shares of common stock are outstanding?
25,000.
24,920.
30,000.
29,920.
Correct.
Indicate the respective effects of the declaration of a cash dividend on the following balance
sheet sections:
Total Assets Total LiabilitiesTotal Stockholders' Equity
Increase Decrease No change
Decrease Increase Decrease
No change
Increase Decrease
Decrease No change
Increase

Correct.
Assume the following cost of goods sold data for a company:
2015
$1,300,000
2014
1,200,000
2013
1,000,000
If 2013 is the base year, what is the percentage increase in cost of goods sold from 2013 to 2015?
70%
30%
20%
130%
Correct.
A company has an average inventory on hand of $75,000 and its average days in inventory is 36.5
days. What is the cost of goods sold?
$876,000
$750,000
$1,680,000
$1,752,000
Correct.
The following information is available for Patterson Company:
2014
2013
Accounts receivable
$ 360,000 $ 340,000
Inventory 280,000 320,000
Net credit sales
3,000,000
2,600,000
Cost of goods sold 1,500,000
840,000
Net income 300,000 170,000
The accounts receivable turnover for 2014 is
7.6 times.
8.6 times.
8.3 times.
4.3 times.

Correct.
All of the following situtations below might indicate a company has a low quality of earnings
except
Revenue is recognized when earned.

Adoption of a different inventory method for each of the last three years.
A lack of disclosure about guaranteed payments that were mentioned in the MD&A of the annual
report.
Maintenance costs are capitalized and then depreciated.
IFRS
requires that receivables with different characteristics should be reported separately.

implies that receivables with different characteristics should be reported as one unsegregated
amount.
requires that receivables with different characteristics should be reported as one unsegregated
amount.
implies that receivables with different characteristics should be reported separately.

Acc 291 Acc291 PDF

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Acc 291 Acc291 PDF

Încărcat de

Drepturi de autor:

Formate disponibile

ACC 291

The Latest Version A+ Study Guide

ACC 291 WileyPLUS Assignment: Week 1 Assignment

Accounts receivable (net)

Answer each of the following questions.

Broadening Your Perspective 8-1

Your answer is correct.

The financial statements of Tootsie Roll are presented below.

Product cost of goods sold

Product gross margin

Total gross margin

Selling, marketing and administrative expenses

Earnings before income taxes

Provision for income taxes

Net product sales

Rental and royalty cost

Rental and royalty gross margin

Other comprehensive earnings (loss)

Retained earnings at beginning of year.

Retained earnings at end of year

Earnings per share

(The accompanying notes are an integral part of these statements.)

Accounts receivable trade, less allowances of $1,731 and $1,531

Finished goods and work-in-process

Raw materials and supplies

Machinery and equipment

Net property, plant and equipment

Split dollar officer life insurance

Equity method investment

Deferred income taxes

Total other assets

Total current liabilities

Deferred income taxes

Postretirement health care and life insurance benefits

Industrial development bonds

Liability for uncertain tax positions

Capital in excess of par value

Retained earnings, per accompanying statement

Accumulated other comprehensive loss

Deferred compensation and other liabilities

Treasury stock (at cost)71 shares and 69 shares, respectively

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES

CASH FLOWS FROM OPERATING ACTIVITIES:

Impairment of equity method investment

Loss from equity method investment

Prepaid expenses and other assets

Postretirement health care and life insurance benefits

Deferred compensation and other liabilities

Accounts payable and accrued liabilities

Net cash provided by operating activities

Net cash used in investing activities

Shares repurchased and retired

Dividends paid in cash

Net cash used in financing activities

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

CASH FLOWS FROM FINANCING ACTIVITIES:

Supplemental cash flow information

(The accompanying notes are an integral part of these statements.)

Five Year Summary of Earning and Financial Hightlights

Sales and Earnings Data