Running head: TOOTSIE ROLL INDUSTRIES INC. LOAN PACKAGE 1 Tootsie Roll Industries Inc. Loan Package TOOTSIE ROLL INDUSTRIES INC. LOAN PACKAGE Tootsie Roll Industries Inc. Loan Package The financial statement of Tootsie Roll Industries provides insightful details into the 2 financial activities of the decades old organization. A financial statement is the “summary report that shows how a firm has used the funds entrusted to it by its stockholders and lenders, and what is its current financial position” ("Financial statement," 2012). The company is known for products such as Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Child’s Play, Charms, Blow Pop, Blue Razz, Cella’s chocolate covered cherries, Mason Dots, …show more content…
LOAN PACKAGE Collateral - Schedule A, Form 413: Personal Financial Statement, Form 912: Statement of 3 Personal History, Form 1624: Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions, and Form 1846: Statement Regarding Lobbying (U.S. Small Business Association, n.d.). Lenders and borrowers must work together in order to apply for the most applicable loan to the business. According to U.S. Small Business Association (n.d.), “Borrowers should provide complete financial statements for the last three years including balance sheets, income statements, and a reconciliation of net worth as well as a current (no more than 90 days old) interim financial statement” (Business Financial Statements). The borrower must also provide projections to the creditor. The projections predict a year out or the positive flow of cash, which includes earnings, expenses, and the reasons behind the projections (U.S. Small Business Association, n.d.). The borrow should include documentation to assist in the predications such as contracts of lease proposals, franchise agreements, purchase agreements, articles of incorporation, plans, specifications, copies of licenses, letters of reference, letters of intent, and contracts partnership agreement (U.S. Small Business Association, n.d.). If the borrower does not provide the proper
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Fuzzy Dice Inc. (“Fuzzy” or “the Company”) manufactures novelty items that it distributes to wholesalers and large online and direct-mail retailers. Fuzzy operates in an area where several other light manufacturers operate, one of which is Tiny Tots Toys LLC (“Tiny”), an educational children’s toy manufacturer. Tiny has been unable to turn a profit for the past few years and has recently filed for Chapter 11 bankruptcy protection.
Tootsie Roll’s simple strategy is to be (and remain) a top-quality producer and distributor of Tootsie Rolls and other candy products, in an industry where it currently has 2 to 3 percent of market share. Specifically, the company has determined to specialize, almost entirely, in hard candies (such as Tootsie Pops and Blow Pops) and chewy candies (such as Tootsie Roll, Frooties and Flavor Roll), and it currently maintains a 50 percent market share in this unique segment. The success of Tootsie Roll in the U.S. for the past 19 years is attributable to the strong consumer awareness of the company’s brand name and brand loyalty. Over time, Tootsie Roll has neither diluted the quality of its products nor failed to
Tootsie Roll Industries is one of America’s most recognized confectionary companies and has been in business for more than 111 years, manufacturing and selling some of the most popular candies in the world. Tootsie Roll wants to secure a loan that will help increase the company’s total liabilities by 10% in the tune of $2.5 million. This loan package is attached to an updated business plan that provides the lender with the company’s history, a vision statement, its market, products, services, management, how the loan will impact the business, and the method of repayment. This paper will detail different ratio analyses, loan justification, and how the company plans to use the proceeds.
Current assets are assets that can be easily converted to cash or will be used within one year. Tootsie Roll 's balance sheet lists cash first. Tootsie Roll lists investments, next. Investments may also be listed on a balance sheet as marketable securities. Investments are short-term investments such as stocks, bonds, or other investments that can be turned into cash
Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale of confectionery products for 113 years. Our products are primarily sold under the familiar brand names: Tootsie Roll, Tootsie Roll Pops, Caramel Apple Pops, Child’s Play, Charms, Blow Pop, Blue Razz, Cella’s chocolate covered cherries, Tootsie Dots, Tootsie Crows, Junior Mints, Junior Caramels, Charleston Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff cotton candy, Dubble Bubble, Razzles, Cry Baby, Nik-L-Nip and EI Bubble.
Tootsie Rolls are one of the top candy sellers in the United States. Tootsie Rolls were first made in 1896 by Leo Hirshfield. He was an immigrant that came from Austria, and his dream was to make candy recipes. He made them in his own small candy shop in New York City. Tootsie Rolls were named after Hirshfields daughter "Tootsie", her real name was Clara Hirshfield.
Tootsie Roll will allocate funds to the following areas, expansion, marketing, and retirement. Tootsie Roll aspires to remain the brand highly recognized across all classes of trade (Kimmel, Weygandt, & Kieso, 2009). Tootsie Roll can use additional funding to expand and penetrate United States and foreign markets successfully while improving its products. Tootsie Roll continues to offer products that are accessible, affordable, and customer-centered. Using targeted consumer and trade promotions to create value in the product will also increase distribution and sales, and yield a faster return on
As I enter Rocket Fizz candy shop to select a tootsie roll pop, I see row after row and bin after bin of colorful, delicious and scrumptious sweetness. I find the selection of tootsie roll pops and see I can choose from purple, red, orange, green, pink or blue. I cannot decide which flavor so I purchase one of each. Once I get home, I lay the flavors out in front of
This strategy of acquiring and improving upon unique brands helps the company avoid the first pitfall of utilizing a differentiation strategy as brands cannot be easily or quickly copied. However, the obsession with reputable and older, recognized brands makes this maneuvering come off as defensive. Coupled with Tootsie Roll’s lack of recent innovation both in products and marketing, as well as staying within the confectionary industry and not making attempts to experiment outside of this sector, causes the company to seem antiquated and
I have reviewed the past two years liabilities and stockholders’ equity sections of Tootsie Roll Industries, Inc. and compared the balance sheets using Debt to Equity Ratio and Times Interest Earned. The calculations presented in thousands:
Schedule O—Consent Plan and Apportionment Schedule Form 1125-A—Cost of Goods Sold Forms 8949—Sales and Other Dispositions of Capital Assets Form 4626—Alternative Minimum Tax—Corporations Schedule D—Capital Gains and Losses Schedule G (Form 1120)—Information on Certain Persons Owning the Corporation’s Voting Stock Form 1125-E—Compensation of Officers Attachment—Supporting Details
Overall Tootsie Roll has better liquidity. Liquidity measures the short-term ability to pay obligations as they are expected to be due within the next year.
Your Personal Income Statement Before looking at Tootsie Roll’s Income Statement, create your own personal income statement using your monthly income and expenses. You will want to collect your monthly net pay (less taxes) from your employer. Also, collect your monthly bills. This will include your car payment, mortgage or rent payment, cell phone bill, gas and electric bill, food, clothes, and entertainment.
Respondent #1 drinks several Diet Pepsis per day, stating that he is constantly drinking it; if he is awake, he has a Diet Pepsi nearby, regardless of the activity. His main motivator in this choice is the taste. Although he is slightly concerned about the negative health effects from drinking cola, he is not going to quit drinking it, stating that if he is going to have a negative impact, it would have already happened. If he is at a venue that does not offer Diet Pepsi, he will drink an iced tea, or sometimes water. He started drinking Diet Pepsi over 30 years ago because that