Tootsie Roll Case Study
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) | …show more content…
No Problem,” at www.fool.com/savings/shortterm/02.htm, and answer the following questions. | (a) | Describe the three factors that determine how much money you should set aside for short term needs. Your willingness to take risk, Your needs, Your upcoming expensesYou willingness to take risk refers to if you are investing in the stock market and how risky you invest. The second factor that determines how much money you should set aside for short term needs is your needs. In order to determine your needs, you need to take into consideration the following questions: how much is your living expenses? How many people are depending on you? Example would be a single person who living expenses a month is $1000. The final factor is your upcoming expenses, which is what you hope to buy in the future. Example if next year you want to buy a car you will need to start saving for the down payment.
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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) | …show more content…
No Problem,” at www.fool.com/savings/shortterm/02.htm, and answer the following questions. | (a) | Describe the three factors that determine how much money you should set aside for short term needs. Your willingness to take risk, Your needs, Your upcoming expensesYou willingness to take risk refers to if you are investing in the stock market and how risky you invest. The second factor that determines how much money you should set aside for short term needs is your needs. In order to determine your needs, you need to take into consideration the following questions: how much is your living expenses? How many people are depending on you? Example would be a single person who living expenses a month is $1000. The final factor is your upcoming expenses, which is what you hope to buy in the future. Example if next year you want to buy a car you will need to start saving for the down payment.