Running head: TOOTSIE ROLL INDUSTRIES, INC. LOAN PACKAGE
Tootsie Roll Industries, Inc. Loan Package
ACC561
22 September 2011
Introduction
Now that the small business idea has become more that just fine print, it is time to put together a loan package that explains the story of the company. There are important questions to answer, demonstrating the company’s ability to correctly make important financial decisions, and detail how the business will pay off the loan. This paper will include the requirements of a loan package, creditor requirements, a ratio analysis, loan justification, and how the company plans to use the proceeds.
Tootsie Roll Industries, Incorporated Loan Package
Loan Package Requirements
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needs a loan to supplement operational expenses and decrease the negative impact market risk factors may have on sales volume. In 2007, the product cost of goods sold increased from costs incurred 2006 as a result of significant increases in prices of many commodities purchased by Tootsie Roll. These commodities consist of some of the major ingredients used in Tootsie Rolls and other products, such as corn syrup, dextrose, milk products, vegetable oils, sugar, and gum base ingredients (Tootsie Roll Industries, 2011).
As a percentage of net sales, product cost of goods sold increased from 62.8% in 2006 to 66.5% in 2007 (Kimmel, Weygandt, & Kieso, 2009). Light freight and delivery costs increased as a result of increases in energy costs, such as oil used for fuel. Exchange of foreign currency on products manufactured in Canada has generated an adverse effect as well, even though sales growth has increased. Tootsie Roll Industries, Inc. has made efforts to offset the increases in costs of commodities through selective price increases and reducing costs where possible (Kimmel, Weygandt, & Kieso, 2009). However, the company has not been able to recover all of the costs associated with the increases in commodities.
The company does not want to risk product price
Since the company’s establishment in 1896, Tootsie Roll Industries Inc. has expanded to become one of the biggest candy companies in the United States. Tootsie Roll Industries Inc. is one of America’s most recognized candy companies through manufacturing and selling some of the most popular candies in the world. The company has an extensive amount of products sold in many venues including grocery stores, vending machines, and drugstores. Tootsie Roll Industries Inc. applies innovation consistently by developing new forms of presentation and creating more options for the consumer. In the first quarter of 2011
Although all of Tootsie Roll’s profitability ratios decreased slightly between 2002 and 2004, the results appear fairly consistent. This Company appears to provide a steady profit and rate of return to its investors. Its profit margins and return on equity are slightly higher than that of Hershey, although both companies appear solid in their ability to generate profits. The stock price has also fluctuated less, providing a steady price/earnings ratio. This is another indicator of a strong, steady performance by Tootsie Roll Company, and stable profitability results.
Tootsie Roll Industries is a confectionery manufacturer headquartered in Chicago, Illinois. It operates seven production facilities – four in the United States, and a single one in Canada, Mexico, and Spain respectively. Its distribution channels span across 75 countries and approximately 92% of the sales are based in the United States.2 Be,yond of the namesake, Tootsie Roll Industries holds over 20 brands of candy. These confections include chocolates, lollipops, cotton candy, gum, and caramel. The non-chocolate products account for about 70% of the total company revenue. The major buyers of these products are confectionary wholesalers and grocery
Tootsie Roll Industries, Inc. has been successful in the manufacturing and sales of confectionery products since the year 1896. We maintain a diverse and notably recognizable brand portfolio that remains popular across all trade channels. We continue to maintain a conservative financial posture in the deployment and management of our assets. One of our company 's priorities is to keep the production and distribution facilities as efficient as possible, support evolving distribution patterns, improve quality and promote growing product lines. Moving forward, Tootsie Roll Industries, Inc. seeks to establish further itself as an industry leader and maintain its high level of satisfaction to its customers. Securing a loan would help to ensure goals are met and even exceeded. We have prepared a detailed package to ensure that all requirements are met to your satisfaction, to help ensure the securing of a loan.
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.
The purpose of this paper is examine operating budgets and variance analysis for Tasty Treats. It will discuss Budgets and fianances can be the sole reason a company succeeds or fails. It is important for a company to know how much they need for future inventory, the cost of materials to produce an item, the overhead costs, and any other items needed to manufacture their products. In this paper we will discuss some changes we should make to change the unfavorable items on the variance report.
One constant is change. Technologies change, processes change, research creates and promotes change (Aguinis, 2013). A need for constant change and improvement exists in any organization to remain competitive in the global environment. This need to remain current in teaching and supporting the teaching and research at the College of Business requires that employees invest in their personal development. To assist with this, the college of business not only provides funds for professional development supports ongoing development through the development plan. The objectives of this plan, the content, and the development activities of the development plan for the College of Business will now be discussed.
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Sweet Peas is a baby boutique featuring newborn and toddler clothes with everything you need to dress your baby for any occasion. Offering trendy clothes for an affordable style from head to toe. Prices will range from $10 baby accessories to $100 customized bring-home outfits. While initially the goal is to open one boutique, expansion plans include potentially franchising the retail store and/or building a well recognized brand name. In turn, hoping to penetrate a sizable portion of the online retail market.
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They claim there are no gimmicks such as deferred interest and hidden fees, and they say that what you see at the checkout is what you pay in total. They are simply offering another method of payment and giving people another option when they are stood at the checkout or making their purchase online.
The following business plans are examples of what a completed business plan might look like. Use the instructions and information included in The Business Plan for Independent Inventors to fill out your own business plan.
Because we are in tune with the pulse of the fashion industry, we provide our accounts with the latest and most popular merchandise. We aim to be the regional leader by providing great products at the right prices. Our goal is moderate growth and annual profitability, by bring beautiful accessories to the Pacific Northwest.”
mary purpose of this project is to create the financial portion of a business plan for
Team Jack Welch (Team 9) Brinda Balachander Debnarayan Banerjee Gagan Singh Ira Singla Priyanshu Mishra Ranjini Ballal Sulabh Sharma