Question: The following data (in thousands of dollars) were adapted from the December 31, 2004, financial statements of Tootsie Roll Industries Inc.:

Sales                                               $420,110

Cost of goods sold                               244,501

Net income                                          64,174

1. What is Tootsie Roll's percent of the cost of sales to sales? Round to one decimal place.

2. The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll's markup percent? Round to one decimal place.

3. What is the percentage of net income to sales for Tootsie Roll? Round to one decimal place.

4. Compare your answers to (2) and (3) with those of Hershey Foods Corporation in Case. What are your conclusions?

Case: The financial statements of Hershey Foods Corporation are shown in Exhibits 4 through 7 of this chapter. Based upon these statements, answer the following questions.

1. What are Hershey's sales (in millions)?

2. What is Hershey's cost of sales (in millions)?

3. What is Hershey's net income (in millions)?

4. What is Hershey's percent of the cost of sales to sales? Round to one decimal place.

5. The percent that a company adds to its cost of sales to determine the selling price is called a markup. What is Hershey's markup percent? Round to one decimal place.

6. What is the percentage of net income to sales for Hershey? Round to one decimal place.