McGraw-Hill OnlineMcGraw-Hill Higher EducationLearning Center
Student Center | Instructor Center | Information Center | Home
Sample Study Guide Chapter
Sample Working Papers Chapter
NetTutor
PowerWeb
Links to Resources
Download GLAS
Text Updates
Chapter Summary
Multiple Choice Quiz
True or False Quiz
Online Tutorial Quiz
Downloadable Definitions
Internet Exercises
PowerPoint Presentations
Alternate Problems
Check Figures
Tootsie Roll Exercises
SPATS
Feedback
Help Center


Book Cover
Financial and Managerial Accounting: The Basis for Business Decisions, 12/e
Jan R. Williams, University of Tennessee
Susan F. Haka, Michigan State University
Mark S. Bettner, Bucknell University
Robert F. Meigs

Income and Changes in Retained Earnings

Tootsie Roll Exercises

 

TOOTSIE ROLL EXERCISE

EXERCISE 12.13

Analysis of Stock Information

LO 1, 8

 

Use the annual report of Tootsie Roll Industries, Inc. in Appendix A of this text to answer these questions.

  1. Study the income statements of Tootsie Roll. Do they include any nonrecurring items that might affect your use of the statements in predicting the future performance of the company?
  2. Study the stock information included in Note 4 and respond to the following:
    1. What is the primary difference between the two classes of common stock that the company has in its capital structure?
    2. Has the company been active in issuing stock dividends and/or stock splits and, if so, what has been the impact of these distributions on the number of outstanding shares?
  3. Looking at the balance sheets for 1998 and 1999:
    1. What is the total amount of paid-in capital for each year?
    2. For 1999, why is the amount of common stock only $22,815 thousand while the total stockholders' equity is much higher at $430,646 thousand?