The document provides financial statements for The Hershey Company and Tootsie Roll Industries for the years 2009-2011. It includes income statements, balance sheets, and statements of cash flows. The income statements show revenues, expenses, operating income, net income, and earnings per share. The balance sheets present assets, liabilities, and shareholders' equity. The cash flow statements report cash from operating, investing and financing activities. Notes provide details on accounting policies for items like property, plant and equipment.

1. Brief Exercise 9-11
Suppose Nike, Inc. reported the following plant assets and
intangible assets for the year ended May 31, 2014 (in millions):
other plant assets $952.3; land $225.3; patents and trademarks
(at cost) $534.9; machinery and equipment $2,066.4; buildings
$921; goodwill (at cost) $164.1; accumulated amortization
$44.5; and accumulated depreciation $2,229.
Prepare a partial balance sheet for Nike for these items. (List
Property, Plant and Equipment in order of Land, Buildings and
Equipment.)
NIKE, INC.
Partial Balance Sheet
As of May 31, 2014
(in millions)
$
$

2. :

3. $
:
Do It! Review 9-5
Match the statement with the term most directly associated with
it.
(Goodwill, amortization, Research and development cost,
Intangible assets, Franchise)

4. 1.
Rights, privileges, and competitive advantages that result from
the ownership of long-lived assets that do not possess physical
substance.
2.
The allocation of the cost of an intangible asset to expense in a
rational and systematic manner.
3.
A right to sell certain products or services, or use certain
trademarks or trade names within a designated geographic area.
4.

5. Costs incurred by a company that often lead to patents or new
products. These costs must be expensed as incurred.
5.
The excess of the cost of a company over the fair value of the
net assets required.
Exercise 9-7
Wang Co. has delivery equipment that cost $50,740 and has
been depreciated $23,190.
Record entries for the disposal under the following
assumptions. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
(a)
It was scrapped as having no value.
(b)
It was sold for $37,380.
(c)
It was sold for $18,000.
No.
Account Titles and Explanation

6. Debit
Credit
(a)
(b)
(c)

7. Exercise 9-8
Here are selected 2014 transactions of Cleland Corporation.
Jan. 1
Retired a piece of machinery that was purchased on January 1,
2004. The machine cost $61,370 and had a useful life
of 10 years with no salvage value.
June 30
Sold a computer that was purchased on January 1, 2012. The
computer cost $37,000 and had a useful life of 4 years with no
salvage value. The computer was sold for $5,700 cash.
Dec. 31
Sold a delivery truck for $9,370 cash. The truck cost

8. $25,050 when it was purchased on January 1, 2011, and was
depreciated based on a 5-year useful life with a $3,670 salvage
value.
Journalize all entries required on the above dates, including
entries to update depreciation on assets disposed of, where
applicable. Cleland Corporation uses straight-line
depreciation. (Record entries in the order displayed in the
problem statement. Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
(To record depreciation expense for the first 6 months of 2014)

9. (To record depreciation expense for the year 2014)

10. Broadening Your Perspective 9-1
The financial statements of Tootsie Roll are 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

11. $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

12. 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

13. 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

14. 103,755
Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358

15. 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

16. $53,157
Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740
)
1,183

17. 2,845
Comprehensive earnings
$35,198
$54,246
$56,002
Retained earnings at beginning of year.
$135,866
$147,687

18. $144,949
Net earnings
43,938
53,063
53,157
Cash dividends
(18,360
)
(18,078
)
(17,790
)
Stock dividends
(47,175
)
(46,806
)

19. (32,629
)
Retained earnings at end of year
$114,269
$135,866
$147,687
Earnings per share
$0.76
$0.90

20. $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)

21. Assets
December 31,
2011
2010
CURRENT ASSETS:
Cash and cash equivalents
$78,612
$115,976
Investments

22. 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:

23. 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

24. 689
Total current assets
212,201
235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land
21,939
21,696
Buildings

25. 107,567
102,934
Machinery and equipment
322,993
307,178
Construction in progress
2,598
9,243
455,097
440,974

26. Less—Accumulated depreciation
242,935
225,482
Net property, plant and equipment
212,162
215,492
OTHER ASSETS:
Goodwill
73,237

27. 73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
Split dollar officer life insurance
74,209
74,441

28. 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

29. Total assets
$857,856
$857,959
Liabilities and Shareholders’ Equity
December 31,
2011
2010
CURRENT LIABILITIES:

30. 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

31. 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

32. 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

33. 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

34. 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
)

35. 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

36. 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

37. operating activities:
Depreciation
19,229
18,279
17,862
Impairment charges
—
—

38. 14,000
Impairment of equity method investment
—
—
4,400
Loss from equity method investment
194
342
233

39. Amortization of marketable security premiums
1,267
522
320
Changes in operating assets and liabilities:
Accounts receivable
(5,448

40. )
717
(5,899
)
Other receivables
3,963
(2,373
)
(2,088
)
Inventories
(15,631
)
(1,447
)
455

41. Prepaid expenses and other assets
5,106
4,936
5,203
Accounts payable and accrued liabilities
84
2,180
(2,755
)

42. 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

43. 2,960
Others
(708
)
310
305
Net cash provided by operating activities
50,390
82,805
76,994

44. CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(16,351
)
(12,813
)
(20,831
)
Net purchase of trading securities
(3,234
)
(2,902

45. )
(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

46. Net cash used in investing activities
(51,157
)
(16,808
)
(16,364
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased and retired
(18,190
)

47. (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
)

48. 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

49. $90,990
Supplemental cash flow information
Income taxes paid
$16,906
$20,586
$22,364
Interest paid

50. $38
$49
$182
Stock dividend issued
$47,053
$46,683
$32,538
(The accompanying notes are an integral part of these
statements.)
Notes to Consolidated Financial Statements ($ in thousands)
PROPERTY, PLANT AND EQUIPMENT:
Depreciation is computed for financial reporting purposes by
use of the straight-line method based on the useful lives of 20 to
35 years for building and 5 to 25 years for machinery and
equipment. Depreciation expenses was $19,229, $18,279 and

51. $17,862 in 2011, 2010 and 2009, respectively.
Goodwill and intangible assets:
In accordance with authoritative guidance, goodwill and
intangible assets with indefinite lives are not amortized, but
rather tested for impairment at least annually unless certain
interim triggering events or circumstances require more
frequent testing. All trademarks have been assessed by
management to have indefinite lives because they are expected
to generate cash flows indefinitely. The Company has
completed its annual impairment testing of its goodwill and
trademarks at December 31 of each of the years presented. As of
December 31, 2009, management ascertained that certain
trademarks were impaired, and recorded a pre-tax charge of
$14,000. No impairments of intangibles were recorded in 2011
and 2010. This determination is made by comparing the carrying
value of the asset with its estimated fair value, which is
calculated using estimates including discounted projected future
cash flows. If the carrying value of goodwill exceeds the fair
value, a second step would measure the carrying value and
implied fair value of goodwill. Management believes that all
assumptions used for the impairment tests are consistent with
those utilized by market participants performing similar
valuations.
Answer the following questions.
What were the total cost and book value of property, plant, and

52. equipment at December 31, 2011? (Enter the amounts in
thousands.)
Total cost
$
Book value
$
Broadening Your Perspective 9-2
The financial statements of The Hershey Company and Tootsie
Roll are 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

53. 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

54. 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

55. 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

56. $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

57. $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

58. 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 www.thehersheycompany.com.
THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS
December 31,
2011
2010
In thousands of dollars
ASSETS

59. Current Assets:
Cash and cash equivalents
$693,686
$884,642
Accounts receivable—trade
399,499
390,061
Inventories
648,953
533,622

60. 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

61. Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
Deferred Income Taxes
38,544
21,387
Other Assets
138,722
161,212

62. Total assets
$4,412,199
$4,272,732
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable
$420,017
$410,655

63. 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

64. 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

65. Commitments and Contingencies
—
—
Stockholders’ Equity:
The Hershey Company Stockholders’ Equity
Preferred Stock, shares issued: none in 2011 and 2010
—
—

66. 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

67. 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

68. 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

69. In thousands of dollars
Cash Flows Provided from (Used by) Operating Activities
Net income
$628,962
$509,799
$435,994

70. 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

71. 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

72. (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
)

73. 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. 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

75. 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

76. )
(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
—
—

77. 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

78. 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

79. )
Proceeds from lease financing agreement
47,601
—
—
Cash dividends paid
(304,083
)
(283,434
)
(263,403
)
Exercise of stock options
184,411
92,033

80. 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

81. )
(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

82. 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

83. 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

84. 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

85. 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

86. 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

87. Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358
2,100

88. 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

89. Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740
)
1,183
2,845

90. Comprehensive earnings
$35,198
$54,246
$56,002
Retained earnings at beginning of year.
$135,866
$147,687
$144,949

91. Net earnings
43,938
53,063
53,157
Cash dividends
(18,360
)
(18,078
)
(17,790
)
Stock dividends
(47,175
)
(46,806
)
(32,629

92. )
Retained earnings at end of year
$114,269
$135,866
$147,687
Earnings per share
$0.76
$0.90
$0.89

93. 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)

94. Assets
December 31,
2011
2010
CURRENT ASSETS:
Cash and cash equivalents
$78,612
$115,976
Investments
10,895

95. 7,996
Accounts receivable trade, less allowances of $1,731 and $1,531
41,895
37,394
Other receivables
3,391
9,961
Inventories:

96. 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

97. 689
Total current assets
212,201
235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land
21,939
21,696
Buildings

98. 107,567
102,934
Machinery and equipment
322,993
307,178
Construction in progress
2,598
9,243
455,097
440,974

99. Less—Accumulated depreciation
242,935
225,482
Net property, plant and equipment
212,162
215,492
OTHER ASSETS:
Goodwill
73,237

100. 73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
Split dollar officer life insurance
74,209
74,441
Prepaid expenses

101. 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

102. Total assets
$857,856
$857,959
Liabilities and Shareholders’ Equity
December 31,
2011
2010
CURRENT LIABILITIES:
Accounts payable

103. $10,683
$9,791
Dividends payable
4,603
4,529
Accrued liabilities
43,069
44,185
Total current liabilities
58,355
58,505

104. 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

105. 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:

106. 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

107. 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

108. 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

109. 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:

110. Depreciation
19,229
18,279
17,862
Impairment charges
—
—

111. 14,000
Impairment of equity method investment
—
—
4,400
Loss from equity method investment
194
342
233

112. Amortization of marketable security premiums
1,267
522
320
Changes in operating assets and liabilities:
Accounts receivable
(5,448
)

113. 717
(5,899
)
Other receivables
3,963
(2,373
)
(2,088
)
Inventories
(15,631
)
(1,447
)
455

114. 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

115. (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

116. 2,960
Others
(708
)
310
305
Net cash provided by operating activities
50,390
82,805
76,994
CASH FLOWS FROM INVESTING ACTIVITIES:

117. Capital expenditures
(16,351
)
(12,813
)
(20,831
)
Net purchase of trading securities
(3,234
)
(2,902
)

118. (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

119. 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

120. )
(20,723
)
Dividends paid in cash
(18,407
)
(18,130
)
(17,825
)
Net cash used in financing activities
(36,597
)
(41,011
)
(38,548
)

121. 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

122. Supplemental cash flow information
Income taxes paid
$16,906
$20,586
$22,364
Interest paid

123. $38
$49
$182
Stock dividend issued
$47,053
$46,683
$32,538
(The accompanying notes are an integral part of these
statements.)
Based on the information in these financial statements and the
accompanying notes and schedules, compute the following
values for each company in 2011. (Round all percentages to 1
decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal
places, e.g. 15.21.)
(1) Return on assets.

124. Return on assets
Tootsie Roll
%
Hershey Company
%
(2) Profit margin (use “Total Revenue”).
Profit margin
Tootsie Roll
%
Hershey Company
%
(3) Asset turnover.
Asset turnover
Tootsie Roll
times

125. Hershey Company
times
Problem 9-2A
At December 31, 2014, Navaro Corporation reported the
following plant assets.
Land
$ 5,856,000
Buildings
$33,550,000
Less: Accumulated depreciation—buildings
23,277,600
10,272,400
Equipment
78,080,000
Less: Accumulated depreciation—equipment
9,760,000
68,320,000
Total plant assets

126. $84,448,400
During 2015, the following selected cash transactions occurred.
Apr.
1
Purchased land for $4,294,400.
May
1
Sold equipment that cost $1,171,200 when purchased on January
1, 2008. The equipment was sold for $331,840.
June
1
Sold land for $3,123,200. The land cost $1,952,000.
July
1
Purchased equipment for $2,147,200.
Dec.
31
Retired equipment that cost $1,366,400 when purchased on
December 31, 2005. No salvage value was received.
Journalize the transactions. Navaro uses straight-line

127. depreciation for buildings and equipment. The buildings are
estimated to have a 40-year useful life and no salvage value; the
equipment is estimated to have a 10-year useful life and no
salvage value. Update depreciation on assets disposed of at the
time of sale or retirement. (Record entries in the order displayed
in the problem statement. Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
(To record depreciation on equipment sold)

129. (To record depreciation on equipment retired)
Problem 8-3A
Presented below is an aging schedule for Bosworth Company.
Customer
Total
Not Yet Due
Number of Days Past Due
1–30

130. 31–60
61–90
Over 90
Aneesh
$ 29,300
$ 8,300
$21,000
Bird
34,100
$ 34,100
Cope
50,100
6,700

131. 5,600
$37,800
DeSpears
46,000
$46,000
Others
135,200
89,900
32,300
13,000

132. $294,700
$130,700
$46,200
$34,000
$37,800
$46,000
Estimated percentage uncollectible
4%
7%
15%
28%
56%
Total estimated bad debts
$ 49,906
$ 5,228
$3,234
$5,100
$ 10,584

133. $25,760
At December 31, 2013, the unadjusted balance in Allowance for
Doubtful Accounts is a credit of $6,500.
Journalize the adjusting entry for bad debts at December 31,
2013. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT

134. Post the adjusting entry for bad debts at December 31, 2013.
Bad Debts Expense
Allowance for Doubtful Accounts
SHOW LIST OF ACCOUNTS
LINK TO TEXT

135. Journalize the 2014 transactions: (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
1.
March 1, a $790 customer balance originating in 2013 is judged
uncollectible.
2.
May 1, a check for $790 is received from the customer whose
account was written off as uncollectible on March 1.
No.
Date
Account Titles and Explanation
Debit
Credit
1.
2.

136. (To reinstate account previously written off)
SHOW LIST OF ACCOUNTS
LINK TO TEXT

137. Post to the allowance account these 2014 events. (Post entries in
the order of journal entries posted in the previous part.)
Allowance for Doubtful Accounts
2013
12/31
Bal.
6,500
12/31
43,406
12/31
Bal.
49,906
2014
SHOW LIST OF ACCOUNTS
LINK TO TEXT

138. Journalize the adjusting entry for bad debts at December 31,
2014, assuming that the unadjusted balance in Allowance for
Doubtful Accounts is a debit of $3,000 and the aging schedule
indicates that total estimated bad debts will be $55,000. (Credit
account titles are automatically indented when amount is
entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit