Guillermo Furniture Store Analysis

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Tootsie Roll Industries, Inc.: Loan Package Tootsie Roll Industries, Inc.: Loan Package Tootsie Roll Industries is applying for a loan package that will help them achieve superior things. There are many opportunities that can be accomplished by allocating money to different areas. The different areas include healthier ingredients, expansion, and advertising. These areas will increase the production and success of the Tootsie Roll Industries, Inc. Within this loan package, there are many exciting things that will improve and perfect healthier candies at Tootsie Roll Industries all over the world. Strategic Applications With the proceeds from the loan, the plan that Tootsie Roll will use the loan to improve the…show more content…
Proper financing will help the company put those things into place and hire the right employees to handle that area of the expansion. Providing financing for Tootsie Roll Company’s expansion can increase diversity by expanding overseas. Expansion could also introduce new innovative products and services to others overseas. Financing finally will lead in helping costs associated with improving the company with enhancement, and development, purchasing equipment for all operations, and with other expenditure items not listed above. Expanding the business overseas can be rewarding for the company and for the lender. Financial Analysis and Ratios Liquidity (dollar values in thousands) The following financial data illustrates the firm’s short-term ability to pay maturing obligations and to meet unexpected needs for cash: | Liquidity Ratio | 2007 | 2006 | Characterization | 1) | Current | 3.45 | 3.07 | Excellent | 2) | Current Cash Debt Coverage | 1.50 Times | 0.93 | Excellent | 3) | Working Capital | $141,754 | $128,706 | Excellent | 1) The current ratio for the previous two years is very positive. In 2007 Tootsie Roll has 3.45 dollars of current assets for every dollar of liabilities. Although this ratio does not account for cash at a given time, the current cash debt coverage ratio further solidifies the financial health related to credit worthiness. 2) Current cash debt coverage values bolster liquidity implications. As

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