591 Wk1 Db2 Res1

Respond to…

-What are Tootsie Roll’s corporate principles?

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

Tootsie’s principles are selecting quality individuals who are a fit for the job, based on their talents, skills, and experience. This company boasts growth and attention to quality work-life balance. Tootsie claims to be conservative in the spending, with only necessary investments that boost the company’s product’s quality being made. They outsource when necessary and advertise aggressively to maintain relevance.

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

I would like to see the added principle of dedication to consumer health and awareness from a food company to be included.

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

$947,361

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

$196,864

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

$885,970 ; this difference is known as equity or net assets.

Tootsie’s asset to liability ratio is reasonable to consider investing in. However, before I were to invest I would like to see growth trends. Call it a hunch, but America is clearly experiencing a health-conscious trend and considering Tootsie’s products alone make me apprehensive. That being said, liabilities are down from last year and total equity is up 9% from the previous year so it seems Tootsie would be a wise investment after all.

References

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2019). Financial accounting: Tools for business decision making (8th ed.). Retrieved from https://www.vitalsource.com

Respond to…

What are Tootsie Roll’s corporate principles? 

-Tootsie Roll’s corporate principles are providing a family-oriented environment at the workplace and allowing employees to advance in their career goals. Tootsie Roll’s believe in enforcing ethical behavior and providing high-quality service to its customers. I believe that these principles are sufficient because it focuses on creating positive employee and customer experience. Retaining and keeping employees’ happy correlates in performance goals of the company and maintaining its clientele.

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

947,361,000 which includes cash, investments, equipment, property, and inventory.

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

-61.391,000 (current liabilities) plus 135,473,000(non-current liabilities) which totals to 196,864,000 in liabilities.

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

-750,497,000 is the total equity. Equity subtracts the liabilities from the assets.

Based on the findings from the annual report, I would not invest in Tootsie Roll. Tootsie Roll’s earnings declined in 2016 and 2018. In 2017, the earnings were higher due to fewer taxes being paid out. However, before taxes were paid out, earning were still declining each year. I believe the reason behind the decline of profits is because  consumers are becoming aware of health related issues regarding candy products.