Byp Accounting

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The financial statements of Tootsie Roll Industries are presented in Appendix A.| |

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InstructionsAnswer the following questions. | (a)  | What was the amount of net cash provided by operating activities for 2007? The amount of net cash provided by operating activities for 2007 was $ 90,064,000 For 2006? $ 55,656,000 What were some causes of any significant changes in cash from operations between 2006 and 2007? Include a change in Tootsie Roll’s account receivable and other receivables, prepaid expenses and other taxes, income taxes payable and deferred, and inventories from 2006 and 2007.| |

(b)  | What was the amount of increase or decrease in cash and cash equivalents for the year ended December 31, 2007? There was a $ 1,877 increase in cash and cash equivalents for the year ended December 31, 2007.| |

(c)  | Which method of computing net cash provided by operating activities does Tootsie Roll use? Tootsie Roll uses Indirect Method to compute net cash provided by operations. | |
(d)  | From your analysis of the 2007 statement of cash flows, was the change in accounts receivable a decrease or an increase? There was a decrease in accounts receivable. Was the change in inventories a decrease or an increase? There was an decrease in inventories during 2007. Was the change in accounts payable a decrease or an increase? There was a decrease in accounts payable in 2007. | |

(e)  | What was the net cash used by investing activities for 2007? The net cash used by inventing activities for 2007 was $43,345,000| |
(f)  | What was the amount of interest paid in 2007? The amount of interest paid in 2007 was $537,000 What was the amount of income taxes paid in 2007? The amount of income taxes paid in 2007 was $11,343,000|

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BYP12-9  | In this chapter you learned that companies prepare a statement of cash flows in order to keep track of their sources and uses of cash and to help them plan for their future...
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