refer to the financial statements and the notes to consolidated financial statements 534588

Refer to the financial statements and the Notes to Consolidated Financial Statements of Tootsie Roll Industries in Appendix A.

Instructions

Answer the following questions.

(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.