The financial statements of The Hershey Company and Tootsie Roll are presented b

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	$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. (Give the amounts in thousands of dollars, as shown in Tootsie Roll’s annual report.)

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What did Tootsie Roll report for the amount of inventories in its Consolidated Balance Sheet at December 31, 2011? At December 31, 2010? (Round amounts to thousands.)

		2011		2010
Inventories		$		$

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Compute the dollar amount of change and the percentage change in inventories between 2010 and 2011. (Round percentages to 1 decimal place, e.g. 15.4% and other answer to thousands.)

		Change in inventories
Dollar amount		$
Percentage

Compute inventory as a percentage of current assets for 2011.(Round answer to 1 decimal place, e.g. 15.4%.)

Inventory as a percentage of current assets

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What are the (product) cost of goods sold reported by Tootsie Roll for 2011, 2010, and 2009?

		2011		2010		2009
Product cost of goods sold		$		$		$

Compute the ratio of (product) cost of goods sold to net (product) sales in 2011. (Round percentage to 1 decimal place, e.g. 15.2%.)

Ratio of cost of goods sold to net

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