Question

Prior to beginning work on this discussion forum, Visit the Tootsie Roll Industries (Links to an external site.) website. Click on “Company” located at the top of the webpage then select “Financials” from the options listed. Open the latest annual report and review it to find the answers to the following questions:

What are Tootsie Roll’s corporate principles?

Do you agree with these principles, or do you feel there are additional principles that should be included?

What was the total amount of Tootsie Roll’s assets for the most current year available?

What was the total amount of Tootsie Roll’s liabilities for the most current year available?

What is the amount of the difference between Tootsie Roll’s assets and liabilities?

What is this difference called?

Based on your initial findings at the Tootsie Roll website, would you consider investing in them? Why or why not? Your answer should illustrate critical thought and understanding of the annual report and financial statements.

Answer 1

Based on Latest annual report of 2018, Tootsie Roll's corporate principles are:

a) Appointment and retain of superior people

b) Provide family atmosphere to the employees to get the maximum contribution from them.

c) Invest in latest equipment to give quality products and to minimize the cost.

d) follows conservative principles while preparing financial statements.

e) Do the trim operation to eliminate waste, minimise cost and implement performance improvements.

f) Outsource some of the functions of manufacturing if appropriate

g) Treat the known brands as prized assets.

h) Run the Business by following the Company's " Code of Business Conduct and Ethics"

I am agree with the Tootise Roll's principles. Addition principles need to include the Raw materials procurement or consumption related information.

Assets: 947361

Liabilities: 947361

Difference: Nil

Yes invest in Tootise Roll's is good because the Company's sales are almost same compared to 2017 and the company is not compramising in the quality though the company has less profit in the year 2018 compared to 2017 the company is expecting the higher profits in the future years. In long term the investment in the business is good.