The final project for XACC 290 is a 700- to 1,050-word paper in which you provide a comprehensive assessment of the 2014 financial statements of Tootsie Roll Inc. You will focus on assessing the company's Balance Sheet and Income Statement. The paper, with citations and references, must follow APA formatting guidelines.

The final project is designed so you can apply the concepts and skills learned in this course to a real-life financial accounting analysis. It incorporates your foundational knowledge-resulting from completion of the learning activities-into a paper that describes your knowledge of accounting concepts.

Look at Tootsie Roll's Industry as an investor and employee and assess this company from each of those perspectivea. As an investor, you will look at the financial statements of Tootsie Roll Industries and determine why an investor would need to know this information?

As a creditor, you will look at the financial statements of Tootsie Roll Industries and determine why you would need to know this information to lend money to the company. And from an employee's perspective, why would you need to know this information as an employee of the company? ALL the work for this paper was completed during Week 6 and Week 8. In Week 9 you are putting your paper togeth, analyzing the work and incorporating your assessments/analysis.

The paper MUST be in the following sequence. It must follow the outline below:

• Introduction: An introductory paragraph with:

A statement of the purpose of your paper: Why might the financial information contained in Tootsie Roll Industries financial statements be important to potential creditors, investors, and employees?

o Provide a brief background on the company. Include in this section what type of business (Services, Merchandising or manufacturing).

You may also want to include some background on whether it is a local or international company. If it distributes it's products... where etc. (Refer to the management notes for this). Be brief and concise in your summary of the business. This helps the reader better understand the numbers.

o A synopsis of what readers can expect to find in the paper. It is best to write this after writing the rest of the paper.

• Assets. (Refer and incorporate the information you already compiled during the Week 6: Financial Reporting Part 1 Assignment).

o Discuss the definition and purpose of assets.

o Discuss the difference between a current asset and a non-current asset?

o Discuss Tootsie Roll Industries Total Assets at December 31, 2013 and December 31, 2014. Did the Total Assets Increase or Decrease? By how much?

o Conclude this section by explaining why the assets section of the balance sheet is important for creditors, investors and employees?

• Inventory (Refer to the Information you already compiled in the Week 8 Financial Reporting Part 2 Assignment)

o What Inventory Method does Tootsie Roll, Inc. use?

o Is Tootsie Rolls inventory increasing or decreasing from year to year? What do you think this means? Explain.

o Calculate and discuss Inventory turnover ratio. (Use product cost of goods sold and total inventory.)

o Calculate and discuss Days in inventory.

o Conclude this section by explaining why the Inventory section of the balance sheet is important for creditors, investors and employees?

• Liabilities. (Refer and incorporate the information you already compiled during the Week 6: Financial Reporting Part 1 Assignment).

o Discuss the definition, purpose and importance of liabilities.

o Discuss trends in Tootsie Roll Industry Liabilities: Accounts Payables.

o What is Tootsie Rolls Total Liabilities for 2013 and 2014?

o Have Tootsie Roll Industries' Total Liabilities Increased or Decreased from 2013 to 2014? What does this mean?

o Discuss/define accrued liabilities.

o Detail the accounts that may be affected by adjustments in the liabilities section of the balance sheet. Explain.

o Discuss the difference between Non-Current Liabilities and Current Liabilities?

o Conclude this section by explaining why the liabilities section of the balance sheet is important for creditors, investors and employees?

• Income Statement (Refer and incorporate the information you already compiled during the Week 6: Financial Reporting Part 1 Assignment).

o Describe the purpose of the Income statement.

o What are the revenues $ for 2013? And 2014? Are the revenues increasing or decreasing from 2013 to 2014?

o What are the Net Income$ for (2013 and 2014)? Is Net Income Increasing from 2013 to 2014?

o Calculate Tootsie Rolls Gross Margin Ratio (page 247 Chapter 5) for 2013 and 2014. Is the ratio increasing or decreasing? Explain what it means.

o Calculate Tootsie Rolls Gross Profit Rates for 2013 and 2014. Is the ratio increasing or decreasing? Explain what it means.

o Conclude this section by providing your thoughts on Tootsie Rolls Revenue and Net Income performance. Why might the income statement be important for creditors, investors and employees?

• Internal Controls

o What are internal controls?

o Read the section of the report titled "Management's Report on Internal Control Over Financial Reporting." Summarize the statements made in that section of the report.

o Why would investors, creditors and employees want to know the status of the company's internal controls? Explain.

• Conclusion: In your conclusion summarize what you did and what you found. Describe how Tootsie Roll follows GAAP. Does Tootsie Roll use cash or accrual accounting? Provide evidence to support your answer? Considering all the information you have gathered, why might this information be important to potential creditors, investors, and employees?

Attachment:- Assignment.rar