ACC 291 Week 3 Assignment Question

ACC 291 week 3 Assignment Question

Description / Instructions:Complete the following Week 3 Assignment in 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

/ Question 1

/ During the month of March, Olinger Company’s employees earned wages of $70,700. Withholdings related to these wages were $5,409for Social Security (FICA), $8,285for federal income tax, $3,425for state income tax, and $442for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $773for 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.)
Date / Account Titles and Explanation / Debit / Credit
Mar. 31 / / /
/ /
/ /
/ /
/ /
/ /
/

/ Prepare the entry to record the company’s payroll tax expense.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Mar. 31 / / /
/ /
/ /
/

/
/ Question 2

/ On August 1, 2014, Ortega Corporation issued $693,600,7%,10-year bonds at face value. Interest is payable annually on August 1. Ortega’s year-end is December 31.
/

/ Prepare journal entries to record the issuance of the bonds.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Aug. 1 / / /
/ /
/

/ Prepare journal entries to record the accrual of interest on December 31, 2014.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Dec. 31 / / /
/ /
/

/ Prepare journal entries to record the payment of interest on August 1, 2015.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Aug. 1 / / /
/ /
/ /
/

/
/ Question 3

/ Romine Company issued $560,000of9%,15-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 automatically indented when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Jan. 1, 2014 / / /
/ /
/

/ Prepare the journal entries to record the accrual of interest on December 31, 2014.(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 payment of interest on January 1, 2015.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Jan. 1, 2015 / / /
/ /
/

/ 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 when amount is entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Jan. 1, 2034 / / /
/ /
/

/
/ Question 4

/ Cole Corporation issued $428,000,6%,20-year bonds on January 1, 2014, for $343,956. This price resulted in an effective-interest rate of8% 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.)
Interest
Periods / Interest to
Be Paid / Interest Expense
to Be Recorded / Discount
Amortization / Unamortized
Discount / Bond
Carrying Value
Issue date / $ / $ / $ / $ / $
1 / / / / /
2 / / / / /
/

/ 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 not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Jan.1, 2014 / / /
/ /
/ /
/

/ 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 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 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 entered. Do not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
Jan.1, 2015 / / /
/ /
/

/
/ Question 5

/ Nance Co. receives $375,900when it issues a $375,900,6%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $19,178on 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.)
Semiannual
Interest
Period / Cash
Payment / Interest
Expense / Reduction
of Principal / Principal
Balance
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 not indent manually.)
Date / Account Titles and Explanation / Debit / Credit
First Installment Payment
June 30, 2015 / / /
/ /
/ /
Second Installment Payment
Dec. 31, 2015 / / /
/ /
/ /
/

/
/ Question 6

/ The financial statements ofTootsie Rollare 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
Net product sales / $528,369 / $517,149 / $495,592
Rental and royalty revenue / 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
Rental and royalty cost / 1,038 / 1,088 / 852
Total costs / 366,263 / 350,422 / 320,627
Product gross margin / 163,144 / 167,815 / 175,817
Rental and royalty gross margin / 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
Impairment charges / — / — / 14,000
Earnings from operations / 57,966 / 64,710 / 60,949
Other income (expense), net / 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
Other comprehensive earnings (loss) / (8,740 / ) / 1,183 / 2,845
Comprehensive earnings / $35,198 / $54,246 / $56,002
Retained earnings at beginning of year. / $135,866 / $147,687 / $144,949
Net earnings / 43,938 / 53,063 / 53,157
Cash dividends / (18,360 / ) / (18,078 / ) / (17,790 / )
Stock dividends / (47,175 / ) / (46,806 / ) / (32,629 / )
Retained earnings at end of year / $114,269 / $135,866 / $147,687
Earnings per share / $0.76 / $0.90 / $0.89
Average Common and Class B Common shares outstanding / 57,892 / 58,685 / 59,425
(The accompanying notes are an integral part of these statements.)
CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets / December 31,
2011 / 2010
CURRENT ASSETS:
Cash and cash equivalents / $78,612 / $115,976
Investments / 10,895 / 7,996
Accounts receivable trade, less allowances of $1,731 and $1,531 / 41,895 / 37,394
Other receivables / 3,391 / 9,961
Inventories:
Finished goods and work-in-process / 42,676 / 35,416
Raw materials and supplies / 29,084 / 21,236
Prepaid expenses / 5,070 / 6,499
Deferred income taxes / 578 / 689
Total current assets / 212,201 / 235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land / 21,939 / 21,696
Buildings / 107,567 / 102,934
Machinery and equipment / 322,993 / 307,178
Construction in progress / 2,598 / 9,243
455,097 / 440,974
Less—Accumulated depreciation / 242,935 / 225,482
Net property, plant and equipment / 212,162 / 215,492
OTHER ASSETS:
Goodwill / 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
Deferred income taxes / 7,715 / 9,203
Total other assets / 433,493 / 407,300
Total assets / $857,856 / $857,959
Liabilities and Shareholders’ Equity / December 31,
2011 / 2010
CURRENT LIABILITIES:
Accounts payable / $10,683 / $9,791
Dividends payable / 4,603 / 4,529
Accrued liabilities / 43,069 / 44,185
Total current liabilities / 58,355 / 58,505
NONCURRENT LIABILITES:
Deferred income taxes / 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
Deferred compensation and other liabilities / 48,092 / 46,157
Total noncurrent liabilities / 133,566 / 132,046
SHAREHOLDERS’ EQUITY:
Common stock, $.69-4/9 par value—120,000 shares authorized—36,479 and 36,057 respectively, issued / 25,333 / 25,040
Class B common stock, $.69-4/9 par value—40,000 shares authorized—21,025 and 20,466 respectively, issued / 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 / )
Treasury stock (at cost)—71 shares and 69 shares, respectively / (1,992 / ) / (1,992 / )
Total shareholders’ equity / 665,935 / 667,408
Total liabilities and shareholders’ equity / $857,856 / $857,959
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Cash Flows (in thousands)
For the year ended December 31,
2011 / 2010 / 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings / $43,938 / $53,063 / $53,157
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
Loss from equity method investment / 194 / 342 / 233
Amortization of marketable security premiums / 1,267 / 522 / 320
Changes in operating assets and liabilities:
Accounts receivable / (5,448 / ) / 717 / (5,899 / )
Other receivables / 3,963 / (2,373 / ) / (2,088 / )
Inventories / (15,631 / ) / (1,447 / ) / 455
Prepaid expenses and other assets / 5,106 / 4,936 / 5,203
Accounts payable and accrued liabilities / 84 / 2,180 / (2,755 / )
Income taxes payable and deferred / (5,772 / ) / 2,322 / (12,543 / )
Postretirement health care and life insurance benefits / 2,022 / 1,429 / 1,384
Deferred compensation and other liabilities / 2,146 / 2,525 / 2,960
Others / (708 / ) / 310 / 305
Net cash provided by operating activities / 50,390 / 82,805 / 76,994
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures / (16,351 / ) / (12,813 / ) / (20,831 / )
Net purchase of trading securities / (3,234 / ) / (2,902 / ) / (1,713 / )
Purchase of available for sale securities / (39,252 / ) / (9,301 / ) / (11,331 / )
Sale and maturity of available for sale securities / 7,680 / 8,208 / 17,511
Net cash used in investing activities / (51,157 / ) / (16,808 / ) / (16,364 / )
CASH FLOWS FROM FINANCING ACTIVITIES:
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
Supplemental cash flow information
Income taxes paid / $16,906 / $20,586 / $22,364
Interest paid / $38 / $49 / $182
Stock dividend issued / $47,053 / $46,683 / $32,538
(The accompanying notes are an integral part of these statements.)
Answer the following questions.
/

/ What were Tootsie Roll’s 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 Roll’s 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 / $
/

/
/ Question 7

/ The financial statements ofThe Hershey CompanyandTootsie Rollare presented below.
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, / 2011 / 2010 / 2009
In thousands of dollars except per share amounts
Net Sales / $6,080,788 / $5,671,009 / $5,298,668
Costs and Expenses:
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
Business realignment and impairment (credits) charges, net / (886 / ) / 83,433 / 82,875
Total costs and expenses / 5,025,760 / 4,765,711 / 4,537,078
Income before Interest and Income Taxes / 1,055,028 / 905,298 / 761,590
Interest expense, net / 92,183 / 96,434 / 90,459
Income before Income Taxes / 962,845 / 808,864 / 671,131
Provision for income taxes / 333,883 / 299,065 / 235,137
Net Income / $628,962 / $509,799 / $435,994
Net Income Per Share—Basic—Class B Common Stock / $2.58 / $2.08 / $1.77
Net Income Per Share—Diluted—Class B Common Stock / $2.56 / $2.07 / $1.77
Net Income Per Share—Basic—Common Stock / $2.85 / $2.29 / $1.97
Net Income Per Share—Diluted—Common Stock / $2.74 / $2.21 / $1.90
Cash Dividends Paid Per Share:
Common Stock / $1.3800 / $1.2800 / $1.1900
Class B Common Stock / 1.2500 / 1.1600 / 1.0712
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
THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS
December 31, / 2011 / 2010
In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents / $693,686 / $884,642
Accounts receivable—trade / 399,499 / 390,061
Inventories / 648,953 / 533,622
Deferred income taxes / 136,861 / 55,760
Prepaid expenses and other / 167,559 / 141,132
Total current assets / 2,046,558 / 2,005,217
Property, Plant and Equipment, Net / 1,559,717 / 1,437,702
Goodwill / 516,745 / 524,134
Other Intangibles / 111,913 / 123,080
Deferred Income Taxes / 38,544 / 21,387
Other Assets / 138,722 / 161,212
Total assets / $4,412,199 / $4,272,732
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable / $420,017 / $410,655
Accrued liabilities / 612,186 / 593,308
Accrued income taxes / 1,899 / 9,402
Short-term debt / 42,080 / 24,088
Current portion of long-term debt / 97,593 / 261,392
Total current liabilities / 1,173,775 / 1,298,845
Long-term Debt / 1,748,500 / 1,541,825
Other Long-term Liabilities / 617,276 / 494,461
Total liabilities / 3,539,551 / 3,335,131
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 / 299,269 / 299,195
Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010 / 60,632 / 60,706
Additional paid-in capital / 490,817 / 434,865
Retained earnings / 4,699,597 / 4,374,718
Treasury—Common Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010 / (4,258,962 / ) / (4,052,101 / )
Accumulated other comprehensive loss / (442,331 / ) / (215,067 / )
The Hershey Company stockholders’ equity / 849,022 / 902,316
Noncontrolling interests in subsidiaries / 23,626 / 35,285
Total stockholders’ equity / 872,648 / 937,601
Total liabilities and stockholders’equity / $4,412,199 / $4,272,732
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, / 2011 / 2010 / 2009
In thousands of dollars
Cash Flows Provided from (Used by) Operating Activities
Net income / $628,962 / $509,799 / $435,994
Adjustments to reconcile net income to net cash provided from operations:
Depreciation and amortization / 215,763 / 197,116 / 182,411
Stock-based compensation expense, net of tax of $15,127, $17,413 and $19,223, respectively / 28,341 / 32,055 / 34,927
Excess tax benefits from stock-based compensation / (13,997 / ) / (1,385 / ) / (4,455 / )
Deferred income taxes / 33,611 / (18,654 / ) / (40,578 / )
Gain on sale of trademark licensing rights, net of tax of $5,962 / (11,072 / ) / — / —
Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively / 30,838 / 77,935 / 60,823
Contributions to pension plans / (8,861 / ) / (6,073 / ) / (54,457 / )
Changes in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable—trade / (9,438 / ) / 20,329 / 46,584
Inventories / (115,331 / ) / (13,910 / ) / 74,000
Accounts payable / 7,860 / 90,434 / 37,228
Other assets and liabilities / (205,809 / ) / 13,777 / 293,272
Net Cash Provided from Operating Activities / 580,867 / 901,423 / 1,065,749
Cash Flows Provided from (Used by) Investing Activities
Capital additions / (323,961 / ) / (179,538 / ) / (126,324 / )
Capitalized software additions / (23,606 / ) / (21,949 / ) / (19,146 / )
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 / ) / — / (15,220 / )
Net Cash (Used by) Investing Activities / (333,005 / ) / (199,286 / ) / (150,326 / )
Cash Flows Provided from (Used by) Financing Activities
Net change in short-term borrowings / 10,834 / 1,156 / (458,047 / )
Long-term borrowings / 249,126 / 348,208 / —
Repayment of long-term debt / (256,189 / ) / (71,548 / ) / (8,252 / )
Proceeds from lease financing agreement / 47,601 / — / —
Cash dividends paid / (304,083 / ) / (283,434 / ) / (263,403 / )
Exercise of stock options / 184,411 / 92,033 / 28,318
Excess tax benefits from stock-based compensation / 13,997 / 1,385 / 4,455
Contributions from noncontrolling interests in subsidiaries / — / 10,199 / 7,322
Repurchase of Common Stock / (384,515 / ) / (169,099 / ) / (9,314 / )
Net Cash (Used by) Financing Activities / (438,818 / ) / (71,100 / ) / (698,921 / )
(Decrease) Increase in Cash and Cash Equivalents / (190,956 / ) / 631,037 / 216,502
Cash and Cash Equivalents as of January 1 / 884,642 / 253,605 / 37,103
Cash and Cash Equivalents as of December 31 / $693,686 / $884,642 / $253,605
Interest Paid / $97,892 / $97,932 / $91,623
Income Taxes Paid / 292,315 / 350,948 / 252,230
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
Net product sales / $528,369 / $517,149 / $495,592
Rental and royalty revenue / 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
Rental and royalty cost / 1,038 / 1,088 / 852
Total costs / 366,263 / 350,422 / 320,627
Product gross margin / 163,144 / 167,815 / 175,817
Rental and royalty gross margin / 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
Impairment charges / — / — / 14,000
Earnings from operations / 57,966 / 64,710 / 60,949
Other income (expense), net / 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
Other comprehensive earnings (loss) / (8,740 / ) / 1,183 / 2,845
Comprehensive earnings / $35,198 / $54,246 / $56,002
Retained earnings at beginning of year. / $135,866 / $147,687 / $144,949
Net earnings / 43,938 / 53,063 / 53,157
Cash dividends / (18,360 / ) / (18,078 / ) / (17,790 / )
Stock dividends / (47,175 / ) / (46,806 / ) / (32,629 / )
Retained earnings at end of year / $114,269 / $135,866 / $147,687
Earnings per share / $0.76 / $0.90 / $0.89
Average Common and Class B Common shares outstanding / 57,892 / 58,685 / 59,425
(The accompanying notes are an integral part of these statements.)
CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets / December 31,
2011 / 2010
CURRENT ASSETS:
Cash and cash equivalents / $78,612 / $115,976
Investments / 10,895 / 7,996
Accounts receivable trade, less allowances of $1,731 and $1,531 / 41,895 / 37,394
Other receivables / 3,391 / 9,961
Inventories:
Finished goods and work-in-process / 42,676 / 35,416
Raw materials and supplies / 29,084 / 21,236
Prepaid expenses / 5,070 / 6,499
Deferred income taxes / 578 / 689
Total current assets / 212,201 / 235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land / 21,939 / 21,696
Buildings / 107,567 / 102,934
Machinery and equipment / 322,993 / 307,178
Construction in progress / 2,598 / 9,243
455,097 / 440,974
Less—Accumulated depreciation / 242,935 / 225,482
Net property, plant and equipment / 212,162 / 215,492
OTHER ASSETS:
Goodwill / 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
Deferred income taxes / 7,715 / 9,203
Total other assets / 433,493 / 407,300
Total assets / $857,856 / $857,959
Liabilities and Shareholders’ Equity / December 31,
2011 / 2010
CURRENT LIABILITIES:
Accounts payable / $10,683 / $9,791
Dividends payable / 4,603 / 4,529
Accrued liabilities / 43,069 / 44,185
Total current liabilities / 58,355 / 58,505
NONCURRENT LIABILITES:
Deferred income taxes / 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
Deferred compensation and other liabilities / 48,092 / 46,157
Total noncurrent liabilities / 133,566 / 132,046
SHAREHOLDERS’ EQUITY:
Common stock, $.69-4/9 par value—120,000 shares authorized—36,479 and 36,057 respectively, issued / 25,333 / 25,040
Class B common stock, $.69-4/9 par value—40,000 shares authorized—21,025 and 20,466 respectively, issued / 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 / )
Treasury stock (at cost)—71 shares and 69 shares, respectively / (1,992 / ) / (1,992 / )
Total shareholders’ equity / 665,935 / 667,408
Total liabilities and shareholders’ equity / $857,856 / $857,959
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Cash Flows (in thousands)
For the year ended December 31,
2011 / 2010 / 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings / $43,938 / $53,063 / $53,157
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
Loss from equity method investment / 194 / 342 / 233
Amortization of marketable security premiums / 1,267 / 522 / 320
Changes in operating assets and liabilities:
Accounts receivable / (5,448 / ) / 717 / (5,899 / )
Other receivables / 3,963 / (2,373 / ) / (2,088 / )
Inventories / (15,631 / ) / (1,447 / ) / 455
Prepaid expenses and other assets / 5,106 / 4,936 / 5,203
Accounts payable and accrued liabilities / 84 / 2,180 / (2,755 / )
Income taxes payable and deferred / (5,772 / ) / 2,322 / (12,543 / )
Postretirement health care and life insurance benefits / 2,022 / 1,429 / 1,384
Deferred compensation and other liabilities / 2,146 / 2,525 / 2,960
Others / (708 / ) / 310 / 305
Net cash provided by operating activities / 50,390 / 82,805 / 76,994
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures / (16,351 / ) / (12,813 / ) / (20,831 / )
Net purchase of trading securities / (3,234 / ) / (2,902 / ) / (1,713 / )
Purchase of available for sale securities / (39,252 / ) / (9,301 / ) / (11,331 / )
Sale and maturity of available for sale securities / 7,680 / 8,208 / 17,511
Net cash used in investing activities / (51,157 / ) / (16,808 / ) / (16,364 / )
CASH FLOWS FROM FINANCING ACTIVITIES:
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
Supplemental cash flow information
Income taxes paid / $16,906 / $20,586 / $22,364
Interest paid / $38 / $49 / $182
Stock dividend issued / $47,053 / $46,683 / $32,538
(The accompanying notes are an integral part of these statements.)
NOTE 6—OTHER INCOME (EXPENSE), NET:
Other income (expense), net is comprised of the following:
2011 / 2010 / 2009
Interest and dividend income / $1,087 / $879 / $1,439