ACC/561 - Accounting
August 15, 2011
Tootsie Roll Industries Inc. Loan Package
Since the company’s establishment in 1896, Tootsie Roll Industries Inc. has expanded to become one of the biggest candy companies in the United States. Tootsie Roll Industries Inc. is one of America’s most recognized candy companies through manufacturing and selling some of the most popular candies in the world. The company has an extensive amount of products sold in many venues including grocery stores, vending machines, and drugstores. Tootsie Roll Industries Inc. applies innovation consistently by developing new forms of presentation and creating more options for the consumer. In the first quarter of 2011 the company increased sales effectively through improved marketing processes but the increased costs of ingredients, freight, energy, and other factors lowered the net earnings to $8,000,000 compared to $9,204,000 in 2010.
Tootsie Roll Industries Inc. is currently seeking beneficial opportunities to improve the net earnings and shareholder value of the organization. The company is completing a loan package by determining its current financial situation through ratio analysis of its financial statements. The goal is to secure a loan for the company to fund $2.5 million to improve the business. The company will explain how the proceeds from the loan will be used to enhance business operations and how the loan approval will affect the company. Tootsie Roll Industries Inc. is confident its reputation as a stable company with an internationally recognized brand of products paired with a thorough assessment of the company’s financial needs and a complete loan package presentation will effectively acquire the funds necessary to enhance business and financial performance (Tootsie Roll Industries, 2011; U.S. Small Business Administration, 2011).
Financial Statements Ratio Analysis