question 1 does tootsie roll industries tri use the indirect method ordirect method 4304006

Question

1. Does Tootsie Roll Industries (TRI) use the indirect method ordirect method for preparing its statement of cash flows? How canyou tell?

2. How much cash was provided by (used in) the followingactivities in 2014 and 2013? Use parentheses to indicate use ofcash.

Operating activities2014:                                2013:                                     

Investing activities2014:                               2013: 

Financing activities2014:                               2013:                                     

3. Does Tootsie Roll Industries adequately provide cash throughits operating activities? What is the significance of this?

4. Review the Investing Activities for 2014. What was the singlemost source of cash for 2014? What was the single most use of cashfor 2014?

5. Notice that there are both purchases and sales/maturities of“available for sale investments”. Why do you think these amountsare reported separately? Why is there not just a single amount fornet changes in “available for sale investments”?

6. Review the Financing Activities for 2014. What was the singlemost source of cash for 2014? What was the single most use of cashfor 2014?

7. What is the amount of cash you expect to see on the BalanceSheet for Dec. 31, 2014?

8. Review the cash flows for all three years presented forTootsie Roll Industries. In two to three sentences, generallydescribe how TRI has obtained its cash and what it has used cashfor. Think in terms of overall activities of operating, investingand financing. In general which of the three activity typesprovided cash and which ones used cash. (You may ignore the lineitem for the effect of exchange rates on cash.)