Question 1)

The companys complete annual report, including the notes to its financial statements, is available in
the Investor Relations section at www.zetarplc.com.
Visit Zetars corporate website and answer the following questions from Zetars 2011 annual report.
What is the approximate tax rate of Zetars Tax on profit from continuing activities? (Round
answer to 0 decimal places, e.g. 25%.)
%

Zetars tax rate is approximately

Question 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
In thousands of dollars except per share amounts
$6,080,78
Net Sales
8
Costs and Expenses:
Cost of sales
3,548,896
Selling, marketing and administrative
1,477,750
Business realignment and impairment (credits) charges,
(886)
net
Total costs and expenses
5,025,760
Income before Interest and Income Taxes
1,055,028
Interest expense, net
92,183
Income before Income Taxes
962,845
Provision for income taxes
333,883
Net Income
$628,962
Net Income Per ShareBasicClass B Common
$2.58
Stock
Net Income Per ShareDilutedClass B Common
$2.56
Stock
Net Income Per ShareBasicCommon Stock
$2.85
Net Income Per ShareDilutedCommon Stock

$2.74

2010

2009

$5,671,009

$5,298,668

3,255,801
1,426,477

3,245,531
1,208,672

83,433

82,875

4,765,711
905,298
96,434
808,864
299,065
$509,799

4,537,078
761,590
90,459
671,131
235,137
$435,994

$2.08

$1.77

$2.07

$1.77

$2.29

$1.97

$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 www.thehersheycompany.com.
THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS

December 31,
In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents
Accounts receivabletrade
Inventories
Deferred income taxes
Prepaid expenses and other
Total current assets
Property, Plant and Equipment, Net
Goodwill
Other Intangibles
Deferred Income Taxes
Other Assets
Total assets
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable
Accrued liabilities
Accrued income taxes
Short-term debt
Current portion of long-term debt
Total current liabilities
Long-term Debt
Other Long-term Liabilities
Total liabilities
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
Class B Common Stock, shares issued: 60,632,042 in 2011 and
60,706,419 in 2010
Additional paid-in capital
Retained earnings
TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and
132,871,512 in 2010
Accumulated other comprehensive loss
The Hershey Company stockholders equity
Noncontrolling interests in subsidiaries
Total stockholders equity
Total liabilities and stockholdersequity

2011

2010

$693,686
399,499
648,953
136,861
167,559
2,046,558
1,559,717
516,745
111,913
38,544
138,722
$4,412,19
9

$884,642
390,061
533,622
55,760
141,132
2,005,217
1,437,702
524,134
123,080
21,387
161,212
$4,272,73
2

$420,017
612,186
1,899
42,080
97,593
1,173,775
1,748,500
617,276
3,539,551

$410,655
593,308
9,402
24,088
261,392
1,298,845
1,541,825
494,461
3,335,131

299,269

299,195

60,632

60,706

490,817
4,699,597

434,865
4,374,718

(4,258,962)

(4,052,101)

(442,331)
849,022
23,626
872,648
$4,412,19
9

(215,067)
902,316
35,285
937,601
$4,272,73
2

THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31,
2011
2010
In thousands of dollars
Cash Flows Provided from (Used by) Operating
Activities
$628,96
Net income
$509,799
2
Adjustments to reconcile net income to net cash provided

2009

$435,994

from operations:
Depreciation and amortization
Stock-based compensation expense, net of tax of $15,127,
$17,413 and $19,223, respectively
Excess tax benefits from stock-based compensation
Deferred income taxes
Gain on sale of trademark licensing rights, net of tax of
$5,962
Business realignment and impairment charges, net of tax of
$18,333, $20,635 and $38,308, respectively
Contributions to pension plans
Changes in assets and liabilities, net of effects from business
acquisitions and divestitures:
Accounts receivabletrade
Inventories
Accounts payable
Other assets and liabilities
Net Cash Provided from Operating Activities
Cash Flows Provided from (Used by) Investing
Activities
Capital additions
Capitalized software additions
Proceeds from sales of property, plant and equipment
Proceeds from sales of trademark licensing rights
Business acquisitions
Net Cash (Used by) Investing Activities
Cash Flows Provided from (Used by) Financing
Activities
Net change in short-term borrowings
Long-term borrowings
Repayment of long-term debt
Proceeds from lease financing agreement
Cash dividends paid
Exercise of stock options
Excess tax benefits from stock-based compensation
Contributions from noncontrolling interests in subsidiaries
Repurchase of Common Stock
Net Cash (Used by) Financing Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents as of January 1
Cash and Cash Equivalents as of December 31
Interest Paid
Income Taxes Paid
T
O
O
T
S
IE
R
O
L
L
I

215,763

197,116

182,411

28,341

32,055

34,927

(13,997)
33,611

(1,385)
(18,654)

(4,455)
(40,578)

(11,072)

30,838

77,935

60,823

(8,861)

(6,073)

(9,438)
(115,331)
7,860
(205,809)

20,329
(13,910)
90,434
13,777

(54,457)
46,584
74,000
37,228
293,272
1,065,74
9

580,867

901,423

(323,961)
(23,606)
312
20,000
(5,750)
(333,005)

(179,538)
(21,949)
2,201

(199,286)

(126,324)
(19,146)
10,364

(15,220)
(150,326)

10,834
249,126
(256,189)
47,601
(304,083)
184,411
13,997

(384,515)
(438,818)
(190,956)
884,642
$693,68
6
$97,892
292,315

1,156
348,208
(71,548)

(283,434)
92,033
1,385
10,199
(169,099)
(71,100)
631,037
253,605

(458,047)

(8,252)

(263,403)
28,318
4,455
7,322
(9,314)
(698,921)
216,502
37,103

$884,642

$253,605

$97,932
350,948

$91,623
252,230

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CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share
data)
Assets
December 31,
2011
2010
CURRENT ASSETS:
$115,97
Cash and cash equivalents
$78,612
6
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
LessAccumulated 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

Deferred income taxes
Total other assets
Total assets
Liabilities and Shareholders Equity
CURRENT LIABILITIES:
Accounts payable
Dividends payable
Accrued liabilities
Total current liabilities
NONCURRENT LIABILITES:
Deferred income taxes
Postretirement health care and life insurance benefits
Industrial development bonds
Liability for uncertain tax positions
Deferred compensation and other liabilities
Total noncurrent liabilities
SHAREHOLDERS EQUITY:
Common stock, $.69-4/9 par value120,000 shares authorized36,479
and 36,057 respectively, issued
Class B common stock, $.69-4/9 par value40,000 shares authorized
21,025 and 20,466 respectively, issued
Capital in excess of par value
Retained earnings, per accompanying statement
Accumulated other comprehensive loss
Treasury stock (at cost)71 shares and 69 shares, respectively
Total shareholders equity
Total liabilities and shareholders equity

3,935
7,715
433,493

4,254
9,203
407,300
$857,95
$857,856
9
December 31,
2011
2010
$10,683
4,603
43,069
58,355

$9,791
4,529
44,185
58,505

43,521
26,108
7,500
8,345
48,092
133,566

47,865
20,689
7,500
9,835
46,157
132,046

25,333

25,040

14,601

14,212

533,677
114,269
(19,953)
(1,992)
665,935

505,495
135,866
(11,213)
(1,992)
667,408
$857,95
9

$857,856

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
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
Net purchase of trading securities
Purchase of available for sale securities
Sale and maturity of available for sale securities
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased and retired
Dividends paid in cash
Net cash used in financing activities

(708)
50,390

310
82,805

305
76,994

(16,351)
(3,234)
(39,252)
7,680
(51,157)

(12,813)
(2,902)
(9,301)
8,208
(16,808)

(20,831)
(1,713)
(11,331)
17,511
(16,364)

(18,190)
(18,407)
(36,597)

(22,881)
(18,130)
(41,011)

(20,723)
(17,825)
(38,548)

Increase (decrease) in cash and cash equivalents

(37,364)

24,986

22,082

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

115,976
$78,612

90,990
$115,976

68,908
$90,990

Supplemental cash flow information

Income taxes paid
$16,906
$20,586
Interest paid
$38
$49
Stock dividend issued
$47,053
$46,683
(The accompanying notes are an integral part of these statements.)

$22,364
$182
$32,538

Based on the information contained in these financial statements, determine the following values for
each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers
to thousands.)
(1) Profit margin for 2011. (For Tootsie Roll, use Total Revenue.)
Profit margin ratio
Tootsie Roll

Hershey Company

(2) Gross profit for 2011. (For Tootsie Roll, use Product amounts.)
Gross profit (000s)
$

Tootsie Roll

Hershey Company
(3) Gross profit rate for 2011. (For Tootsie Roll, use Product amounts.)
Gross profit rate
Tootsie Roll

Hershey Company

(4) Operating income for 2011.

Operating income (000's)

$

Tootsie Roll

Hershey Company

(5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a
negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.)
Percent change in
operating income
Tootsie Roll

Hershey Company

Question 3)
Gerish Company buys merchandise on account from Mangus Company. The selling price of the goods
is $1,489 and the cost of the goods sold is $616. Both companies use perpetual inventory systems.
Journalize the transactions on the books of both companies. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Gerish Company

Mangus Company

(To record sale of merchandise)

Debit

Credit

Question 4)
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
In thousands of dollars except per share amounts
$6,080,78
Net Sales
8
Costs and Expenses:
Cost of sales
3,548,896
Selling, marketing and administrative
1,477,750
Business realignment and impairment (credits) charges,
(886)
net
Total costs and expenses
5,025,760
Income before Interest and Income Taxes
1,055,028
Interest expense, net
92,183
Income before Income Taxes
962,845
Provision for income taxes
333,883
Net Income
$628,962
Net Income Per ShareBasicClass B Common
$2.58
Stock
Net Income Per ShareDilutedClass B Common
$2.56
Stock
Net Income Per ShareBasicCommon Stock
$2.85
Net Income Per ShareDilutedCommon Stock

$2.74

2010

2009

$5,671,009

$5,298,668

3,255,801
1,426,477

3,245,531
1,208,672

83,433

82,875

4,765,711
905,298
96,434
808,864
299,065
$509,799

4,537,078
761,590
90,459
671,131
235,137
$435,994

$2.08

$1.77

$2.07

$1.77

$2.29

$1.97

$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 www.thehersheycompany.com.

THE HERSHEY COMPANY

CONSOLIDATED BALANCE SHEETS
December 31,
In thousands of dollars
ASSETS
Current Assets:
Cash and cash equivalents
Accounts receivabletrade
Inventories
Deferred income taxes
Prepaid expenses and other
Total current assets
Property, Plant and Equipment, Net
Goodwill
Other Intangibles
Deferred Income Taxes
Other Assets
Total assets
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable
Accrued liabilities
Accrued income taxes
Short-term debt
Current portion of long-term debt
Total current liabilities
Long-term Debt
Other Long-term Liabilities
Total liabilities
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
Class B Common Stock, shares issued: 60,632,042 in 2011 and
60,706,419 in 2010
Additional paid-in capital
Retained earnings
TreasuryCommon Stock shares, at cost: 134,695,826 in 2011 and
132,871,512 in 2010
Accumulated other comprehensive loss
The Hershey Company stockholders equity
Noncontrolling interests in subsidiaries
Total stockholders equity
Total liabilities and stockholdersequity

2011

2010

$693,686
399,499
648,953
136,861
167,559
2,046,558
1,559,717
516,745
111,913
38,544
138,722
$4,412,19
9

$884,642
390,061
533,622
55,760
141,132
2,005,217
1,437,702
524,134
123,080
21,387
161,212
$4,272,73
2

$420,017
612,186
1,899
42,080
97,593
1,173,775
1,748,500
617,276
3,539,551

$410,655
593,308
9,402
24,088
261,392
1,298,845
1,541,825
494,461
3,335,131

299,269

299,195

60,632

60,706

490,817
4,699,597

434,865
4,374,718

(4,258,962)

(4,052,101)

(442,331)
849,022
23,626
872,648
$4,412,19
9

(215,067)
902,316
35,285
937,601
$4,272,73
2

THE HERSHEY COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31,
2011
In thousands of dollars
Cash Flows Provided from (Used by) Operating
Activities

2010

2009

Net income
Adjustments to reconcile net income to net cash provided
from operations:
Depreciation and amortization
Stock-based compensation expense, net of tax of $15,127,
$17,413 and $19,223, respectively
Excess tax benefits from stock-based compensation
Deferred income taxes
Gain on sale of trademark licensing rights, net of tax of
$5,962
Business realignment and impairment charges, net of tax of
$18,333, $20,635 and $38,308, respectively
Contributions to pension plans
Changes in assets and liabilities, net of effects from business
acquisitions and divestitures:
Accounts receivabletrade
Inventories
Accounts payable
Other assets and liabilities
Net Cash Provided from Operating Activities
Cash Flows Provided from (Used by) Investing
Activities
Capital additions
Capitalized software additions
Proceeds from sales of property, plant and equipment
Proceeds from sales of trademark licensing rights
Business acquisitions
Net Cash (Used by) Investing Activities
Cash Flows Provided from (Used by) Financing
Activities
Net change in short-term borrowings
Long-term borrowings
Repayment of long-term debt
Proceeds from lease financing agreement
Cash dividends paid
Exercise of stock options
Excess tax benefits from stock-based compensation
Contributions from noncontrolling interests in subsidiaries
Repurchase of Common Stock
Net Cash (Used by) Financing Activities
(Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents as of January 1
Cash and Cash Equivalents as of December 31
Interest Paid
Income Taxes Paid
T
O
O
T
S
IE
R
O

$628,96
2

$509,799

$435,994

215,763

197,116

182,411

28,341

32,055

34,927

(13,997)
33,611

(1,385)
(18,654)

(4,455)
(40,578)

(11,072)

30,838

77,935

60,823

(8,861)

(6,073)

(9,438)
(115,331)
7,860
(205,809)

20,329
(13,910)
90,434
13,777

(54,457)
46,584
74,000
37,228
293,272
1,065,74
9

580,867

901,423

(323,961)
(23,606)
312
20,000
(5,750)
(333,005)

(179,538)
(21,949)
2,201

(199,286)

(126,324)
(19,146)
10,364

(15,220)
(150,326)

10,834
249,126
(256,189)
47,601
(304,083)
184,411
13,997

(384,515)
(438,818)
(190,956)
884,642
$693,68
6
$97,892
292,315

1,156
348,208
(71,548)

(283,434)
92,033
1,385
10,199
(169,099)
(71,100)
631,037
253,605

(458,047)

(8,252)

(263,403)
28,318
4,455
7,322
(9,314)
(698,921)
216,502
37,103

$884,642

$253,605

$97,932
350,948

$91,623
252,230

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CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share
data)
Assets
December 31,
2011
2010
CURRENT ASSETS:
$115,97
Cash and cash equivalents
$78,612
6
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
LessAccumulated 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
Split dollar officer life insurance
Prepaid expenses
Equity method investment
Deferred income taxes
Total other assets
Total assets
Liabilities and Shareholders Equity
CURRENT LIABILITIES:
Accounts payable
Dividends payable
Accrued liabilities
Total current liabilities
NONCURRENT LIABILITES:
Deferred income taxes
Postretirement health care and life insurance benefits
Industrial development bonds
Liability for uncertain tax positions
Deferred compensation and other liabilities
Total noncurrent liabilities
SHAREHOLDERS EQUITY:
Common stock, $.69-4/9 par value120,000 shares authorized36,479
and 36,057 respectively, issued
Class B common stock, $.69-4/9 par value40,000 shares authorized
21,025 and 20,466 respectively, issued
Capital in excess of par value
Retained earnings, per accompanying statement
Accumulated other comprehensive loss
Treasury stock (at cost)71 shares and 69 shares, respectively
Total shareholders equity
Total liabilities and shareholders equity

96,161
74,209
3,212
3,935
7,715
433,493

64,461
74,441
6,680
4,254
9,203
407,300
$857,95
$857,856
9
December 31,
2011
2010
$10,683
4,603
43,069
58,355

$9,791
4,529
44,185
58,505

43,521
26,108
7,500
8,345
48,092
133,566

47,865
20,689
7,500
9,835
46,157
132,046

25,333

25,040

14,601

14,212

533,677
114,269
(19,953)
(1,992)
665,935

505,495
135,866
(11,213)
(1,992)
667,408
$857,95
9

$857,856

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

Postretirement health care and life insurance benefits
Deferred compensation and other liabilities
Others
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
Net purchase of trading securities
Purchase of available for sale securities
Sale and maturity of available for sale securities
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased and retired
Dividends paid in cash
Net cash used in financing activities

(5,772)
2,022
2,146
(708)
50,390

2,322
1,429
2,525
310
82,805

(12,543)
1,384
2,960
305
76,994

(16,351)
(3,234)
(39,252)
7,680
(51,157)

(12,813)
(2,902)
(9,301)
8,208
(16,808)

(20,831)
(1,713)
(11,331)
17,511
(16,364)

(18,190)
(18,407)
(36,597)

(22,881)
(18,130)
(41,011)

(20,723)
(17,825)
(38,548)

Increase (decrease) in cash and cash equivalents

(37,364)

24,986

22,082

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

115,976
$78,612

90,990
$115,976

68,908
$90,990

Supplemental cash flow information

Income taxes paid
$16,906
$20,586
Interest paid
$38
$49
Stock dividend issued
$47,053
$46,683
(The accompanying notes are an integral part of these statements.)

$22,364
$182
$32,538

Based on the information contained in these financial statements, determine the following values for
each company. (Round all percentages to 1 decimal places, e.g. 17.5%, and all other answers
to thousands.)
(1) Profit margin for 2011. (For Tootsie Roll, use Total Revenue.)
Profit margin ratio
Tootsie Roll

Hershey Company

(2) Gross profit for 2011. (For Tootsie Roll, use Product amounts.)
Gross profit (000s)
$

Tootsie Roll

Hershey Company
(3) Gross profit rate for 2011. (For Tootsie Roll, use Product amounts.)
Gross profit rate
Tootsie Roll

Hershey Company

(4) Operating income for 2011.

Operating income (000's)
$

Tootsie Roll

Hershey Company

(5) Percentage change in operating income from 2011 to 2010. (Show decrease with either a
negative sign, e.g. -15.2% or in parentheses, e.g. (15.2)%.)
Percent change in
operating income
Tootsie Roll

Hershey Company

+=================================================
===============================

QUESTION 5)
Presented here are the components in Casilla Companys income statement.
Determine the missing amounts.
Sales
Revenue
Year
1

$ 72,500

Year
2

$112,100

Year
3

Cost of Goods
Sold
$
(a
)
$74,480
(e)

$73,790

Operating
Expenses
$

Gross Profit
$ 33,310
$ (c

)
$112,200

$49,670

Net Income
(b
)

$14,180

(d
)

$29,650
$ (f
)

QUESTION 6)
Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following
transactions were completed.
July
1
1
3
5
12
18
20
21
25
31
31

Issued 16,197 shares of common stock for $16,197 cash.

Purchased used truck for $12,197, paying $2,206 cash and the balance on account.
Purchased cleaning supplies for $941 on account.
Paid $2,400 cash on a 1-year insurance policy effective July 1.
Billed customers $4,900 for cleaning services.
Paid $1,293 cash on amount owed on truck and $541 on amount owed on cleaning
supplies.
Paid $2,249 cash for employee salaries.
Collected $1,634 cash from customers billed on July 12.
Billed customers $2,667 for cleaning services.
Paid $365 for maintenance of the truck during month.
Declared and paid $634 cash dividend.

Journalize the July transactions. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. Record journal entries in the order
presented in the problem.)
Date

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Post to the ledger accounts. (Post entries in the order of journal entries presented in the
previous question.)
Cash

Accounts Receivable

Supplies

Prepaid Insurance

Equipment

Accounts Payable

Common Stock

Dividends

Service Revenue

Maintenance and Repairs Expense

Salaries and Wages Expense

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare a trial balance at July 31.

CLEAN WINDOW WASHING INC.
Trial Balance
July 31, 2014
Debit
$

Credit
$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Journalize the following adjustments. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually.)
(1
)
(2
)
(3
)
(4
)
(5
)
No.
1.

2.

3.

4.

Services performed but unbilled and uncollected at July 31 were

$1,866.
Depreciation on equipment for the month was $211.
One-twelfth of the insurance expired.
An inventory count shows $320 of cleaning supplies on hand at July
31.
Accrued but unpaid employee salaries were $424.
Account Titles and Explanation

Debit

Credit

5.

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Post adjusting entries to the T-accounts.

Cash
7/1
7/21

7/31 Bal.

16,197 7/1

2,206

1,634 7/5

2,400

7/18

1,834

7/20

2,249

7/31

365

7/31

634

8,143
Accounts Receivable

7/12

4,900 7/21

7/25

2,667

Supplies
7/3

941

Prepaid Insurance
7/5

2,400

Equipment
7/1

12,197

7/31 Bal.

12,197

1,634

Accumulated Depreciation-Equipment

Accounts Payable
7/18

1,834 7/1

9,991

7/3

941

7/31 Bal.

9,098

Salaries and Wages Payable

Common Stock
7/1

16,197

7/31 Bal.

16,197

Dividends
7/31

634

7/31 Bal.

634
Service Revenue
7/12

4,900

7/25

2,667

Maintenance and Repairs Expense

7/31

365

7/31 Bal.

365
Supplies Expense

Depreciation Expense

Insurance Expense

Salaries and Wages Expense

7/20

2,249

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare an adjusted trial balance.

CLEAN WINDOW WASHING INC.
Trial Balance
July 31, 2014
Debit
$

Credit
$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare the income statement for July.

CLEAN WINDOW WASHING INC.
Income Statement
For the Month Ended July 31, 2014

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare a retained earnings statement for July. (List items that increase retained earnings
first.)
CLEAN WINDOW WASHING INC.
Retained Earnings Statement
For the Month Ended July 31, 2014
$
:

:
$

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LINK TO TEXT

Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.)
CLEAN WINDOW WASHING INC.
Balance Sheet
July 31, 2014
Assets

:
$
Liabilities and Stockholders' Equity

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Journalize closing entries. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually.)
Account Titles and Explanation

(To close revenue account)

Debit

Credit

(To close expense accounts)

(To close net income / (loss))

(To close dividends)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Post closing entries and complete the closing process.

Cash
7/1
7/21

7/31 Bal.

16,197 7/1

2,206

1,634 7/5

2,400

7/18

1,834

7/20

2,249

7/31

365

7/31

634

8,143
Accounts Receivable

7/12

4,900 7/21

7/25

2,667

7/31

1,866

7/31 Bal.

7,799

1,634

Supplies
7/3

941 7/31

7/31 Bal.

320

621

Prepaid Insurance
7/5

2,400 7/31

7/31 Bal.

2,200

200

Equipment
7/1

12,197

7/31 Bal.

12,197
Accumulated Depreciation-Equipment
7/31

211

7/31 Bal.

211

Accounts Payable
7/18

1,834 7/1

9,991

7/3

941

7/31 Bal.

9,098

Salaries and Wages Payable

7/31

424

7/31 Bal.

424

Common Stock
7/1

16,197

7/31 Bal.

16,197

Retained Earnings

Dividends
7/31

634

Income Summary

Service Revenue
7/12

4,900

7/25

2,667

7/31

1,866

Maintenance and Repairs Expense

7/31

365

Supplies Expense
7/31

621

Depreciation Expense
7/31

211

Insurance Expense
7/31

200

Salaries and Wages Expense

7/20

2,249

7/31

424

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare a post-closing trial balance at July 31.

CLEAN WINDOW WASHING INC.
Post-Closing Trial Balance
July 31, 2014
Debit

SHOW LIST OF ACCOUNTS

Credit