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Answer using the actual financial statements of Tootsie Roll

Resolved Question:

Answer using the actual financial statements of Tootsie Roll from 2077-2009 or appendix a of the book listed @ the end.

(a) What were the total cost and book value of property, plant, and equipment at December 31, 2009?
(b) What method or methods of depreciation are used by Tootsie Roll for financial reporting
purposes?
(c) What was the amount of depreciation and amortization expense for each of the 3 years
2007–2009? (Hint: Use the statement of cash flows.)
(d) Using the statement of cash flows, what are the amounts of property, plant, and equipment
purchased (capital expenditures) in 2009 and 2008?
(e) Explain how Tootsie Roll accounted for its intangible assets in 2009."
(Kimmel 535)
Kimmel. Essentials of Accounting for Business 4th Ed.

Submitted: 1 year ago.
Category: Business and Finance Homework
Expert:  Neo replied 1 year ago.

Good day!

Welcome to JustAnswer!

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Customer: replied 1 year ago.

Hello - Can you please explain how you came up with the answer to part a? The answer does not make sense to me when compared to the data in the book???

Expert:  Neo replied 1 year ago.


Please send me a copy of the data from your book so I may compare with mine.

Customer: replied 1 year ago.

Ok, what info do you need exactly? The appendix is several pages long.

Expert:  Neo replied 1 year ago.


Please let me know then amounts showing under Property, Plant and Equipments; and the accumulated depreciation.

Customer: replied 1 year ago.

This is how it looks in the book:

 

(in thousands)

 

PROPERTY, PLANT AND EQUIPMENT, at cost:

Land - 21,559

Buildings - 102,374

Machinery and equipment 296,787

Construction in progress - 6,877

427,597

Less Accumulated dep 206,876

Net Property, plant & equip 220,721

Expert:  Neo replied 1 year ago.

The "Total Cost" of the Property, Plant and Equipment is the total of the items under Property, Plant and Equipment.

PROPERTY, PLANT AND EQUIPMENT, at cost:

Land - 21,559

Buildings - 102,374

Machinery and equipment 296,787

Construction in progress - 6,877

427,597

Less Accumulated dep 206,876

Net Property, plant & equip 220,721


Since, all figures are in thousands, then, the total cost of Property, Plant and Equipment is $427,597,000.

The "Book Value" of the Property, Plant and Equipment is total cost less accumulated depreciation.

PROPERTY, PLANT AND EQUIPMENT, at cost:

Land - 21,559

Buildings - 102,374

Machinery and equipment 296,787

Construction in progress - 6,877

427,597

Less Accumulated dep 206,876

Net Property, plant & equip 220,721


Since, all figures are in thousands, then, the book value of Property, Plant and Equipment is $220,721,000.

Neo, Bachelor's Degree
Positive Feedback: 98.1 %
Satisfied Customers: 12009
Experience: BS Accounting
Neo and 2 other Business and Finance Homework Specialists are ready to help you
Customer: replied 1 year ago.

Ok. Thanks. Now it seems so obvious to me. I have a SW background so this accounting is completely out of my element. Thank again.

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