Question
In: Accounting
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow:
|
Hershey: Consolidated Balance Sheets |
|||
|
(millions) |
2009 |
2010 |
|
|
Assets |
|||
|
Current Assets |
|||
|
Cash and Equivalents |
$ 253.6 |
$ 884.6 |
|
|
Accounts Receivable, Trade |
410.4 |
390.1 |
|
|
Inventories |
519.7 |
533.6 |
|
|
Deferred Income Taxes |
39.9 |
55.8 |
|
|
Prepaid Expenses and Other Assets |
161.8 |
141.1 |
|
|
Total Current Assets |
1,385.4 |
2,005.2 |
|
|
Property, Plant, and Equipment, net |
1,404.8 |
1,437.7 |
|
|
Goodwill and Intangible Assets |
571.6 |
524.1 |
|
|
Other Intangible Assets |
125.5 |
123.1 |
|
|
Deferred Income Taxes and Other Assets |
187.7 |
182.6 |
|
|
Total Assets |
$ 3,675.0 |
$ 4,272.7 |
|
|
Liabilities and Shareholders’ Equity |
|||
|
Current Liabilities |
|||
|
Accounts Payable |
$ 287.9 |
$ 410.7 |
|
|
Accrued Liabilities and Taxes |
583.4 |
602.7 |
|
|
Short-Term Debt |
24.1 |
24.1 |
|
|
Current Portion of Long-Term Debt |
15.2 |
261.4 |
|
|
Total Current Liabilities |
910.6 |
1,298.9 |
|
|
Long-Term Debt |
1,502.7 |
1,541.8 |
|
|
Other Long-Term Liabilities |
501.4 |
494.4 |
|
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Total Liabilities |
2,914.7 |
3,335.1 |
|
|
Shareholders’ Equity |
|||
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Common Stock |
359.9 |
359.9 |
|
|
Additional Paid-In Capital |
394.7 |
434.9 |
|
|
Retained Earnings |
4,148.3 |
4,374.7 |
|
|
Treasury Stock |
(3,979.6) |
(4,052.1) |
|
|
Accumulated Other Comprehensive Loss |
(202.9) |
(215.1) |
|
|
Noncontrolling Interests |
39.9 |
35.3 |
|
|
Total Shareholders’ Equity |
760.3 |
937.6 |
|
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Total Liabilities and Shareholders’ Equity |
$ 3,675.0 |
$ 4,272.7 |
|
Additional information for 2010: Total sales $5,671.0
Costs of goods sold $3,255.8
Net income $ 509.8
REQUIRED:
- Compute the common-size balance sheet for 2010 and the rate of change balance sheet for 2010.
Solutions
Expert Solution
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| Hershey Company | ||
| Common-size balance sheet for 2010 | ||
| Current Assets | 2010 | 2010 % |
| Cash and Equivalents | 884.60 | 20.70% |
| Accounts Receivable, Trade | 390.10 | 9.13% |
| Inventories | 533.60 | 12.49% |
| Deferred Income Taxes | 55.80 | 1.31% |
| Prepaid Expenses and Other Assets | 141.10 | 3.30% |
| Total Current Assets | 2,005.20 | 46.93% |
| Property, Plant, and Equipment, net | 1,437.70 | 33.65% |
| Goodwill and Intangible Assets | 524.10 | 12.27% |
| Other Intangible Assets | 123.10 | 2.88% |
| Deferred Income Taxes and Other Assets | 182.60 | 4.27% |
| Total Assets | 4,272.70 | 100.00% |
| Liabilities and Shareholders’ Equity | ||
| Current Liabilities | ||
| Accounts Payable | 410.70 | 9.61% |
| Accrued Liabilities and Taxes | 602.70 | 14.11% |
| Short-Term Debt | 24.10 | 0.56% |
| Current Portion of Long-Term Debt | 261.40 | 6.12% |
| Total Current Liabilities | 1,298.90 | 30.40% |
| Long-Term Debt | 1,541.80 | 36.08% |
| Other Long-Term Liabilities | 494.40 | 11.57% |
| Total Liabilities | 3,335.10 | 78.06% |
| Shareholders’ Equity | ||
| Common Stock | 359.90 | 8.42% |
| Additional Paid-In Capital | 434.90 | 10.18% |
| Retained Earnings | 4,374.70 | 102.39% |
| Treasury Stock | (4,052.10) | -94.84% |
| Accumulated Other Comprehensive Loss | (215.10) | -5.03% |
| Noncontrolling Interests | 35.30 | 0.83% |
| Total Shareholders’ Equity | 937.60 | 21.94% |
| Total Liabilities and Shareholders’ Equity | 4,272.70 | 100.00% |
| Rate of change balance sheet for 2010 | ||||
| Current Assets | 2009 | 2010 | Change $ | Change % |
| Cash and Equivalents | 253.60 | 884.60 | 631.00 | 248.82% |
| Accounts Receivable, Trade | 410.40 | 390.10 | (20.30) | -4.95% |
| Inventories | 519.70 | 533.60 | 13.90 | 2.67% |
| Deferred Income Taxes | 39.90 | 55.80 | 15.90 | 39.85% |
| Prepaid Expenses and Other Assets | 161.80 | 141.10 | (20.70) | -12.79% |
| Total Current Assets | 1,385.40 | 2,005.20 | 619.80 | 44.74% |
| Property, Plant, and Equipment, net | 1,404.80 | 1,437.70 | 32.90 | 2.34% |
| Goodwill and Intangible Assets | 571.60 | 524.10 | (47.50) | -8.31% |
| Other Intangible Assets | 125.50 | 123.10 | (2.40) | -1.91% |
| Deferred Income Taxes and Other Assets | 187.70 | 182.60 | (5.10) | -2.72% |
| Total Assets | 3,675.00 | 4,272.70 | 597.70 | 16.26% |
| Liabilities and Shareholders’ Equity | ||||
| Current Liabilities | ||||
| Accounts Payable | 287.90 | 410.70 | 122.80 | 42.65% |
| Accrued Liabilities and Taxes | 583.40 | 602.70 | 19.30 | 3.31% |
| Short-Term Debt | 24.10 | 24.10 | - | 0.00% |
| Current Portion of Long-Term Debt | 15.20 | 261.40 | 246.20 | 1619.74% |
| Total Current Liabilities | 910.60 | 1,298.90 | 388.30 | 42.64% |
| Long-Term Debt | 1,502.70 | 1,541.80 | 39.10 | 2.60% |
| Other Long-Term Liabilities | 501.40 | 494.40 | (7.00) | -1.40% |
| Total Liabilities | 2,914.70 | 3,335.10 | 420.40 | 14.42% |
| Shareholders’ Equity | ||||
| Common Stock | 359.90 | 359.90 | - | 0.00% |
| Additional Paid-In Capital | 394.70 | 434.90 | 40.20 | 10.18% |
| Retained Earnings | 4,148.30 | 4,374.70 | 226.40 | 5.46% |
| Treasury Stock | (3,979.60) | (4,052.10) | (72.50) | 1.82% |
| Accumulated Other Comprehensive Loss | (202.90) | (215.10) | (12.20) | 6.01% |
| Noncontrolling Interests | 39.90 | 35.30 | (4.60) | -11.53% |
| Total Shareholders’ Equity |
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chocolates, candies, and confections. The company sells chocolates
and candies, mints and gums, baking ingredients, toppings, and
beverages. Hershey’s consolidated balance sheets for 2009 and 2010
follow:
Hershey: Consolidated Balance Sheets
(millions)
2009
2010
Assets
Current Assets
Cash and Equivalents
$ 253.6
$ 884.6
Accounts Receivable, Trade
410.4
390.1
Inventories
519.7
533.6
Deferred Income Taxes
39.9
55.8
Prepaid Expenses and Other Assets
161.8
141.1
Total Current Assets
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and candies, mints and gums, baking ingredients, toppings, and
beverages. Hershey’s consolidated balance sheets for 2009 and 2010
follow: 2009 2010
Hershey: Consolidated Balance Sheets (millions)
2009
2010
Assets
Current Assets
Cash and Equivalents
$ 253.6
$ 884.6
Accounts Receivable, Trade
410.4
390.1
Inventories
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533.6
Deferred Income Taxes
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55.8
Prepaid Expenses and Other Assets
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Total Current...
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$ 1,118.5
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