Making Business Decisions: Analyzing The Hershey Company’s Accounts Receivable Turnover Ratio You are considering making a loan to The Hershey Company. The following information is from the financial statements included in Form 10-K for fiscal years 2014 and 2013 (in thousands of dollars)

The following information is from the financial statements included in Form 10-K for fiscal years 2014 and 2013 for Tootsie Roll Industries, Inc. (in thousands of dollars):

Required Part A. The Ratio Analysis Model A lender must assess how well a company is managing its accounts receivable before making a loan. The accounts receivable turnover ratio tells us how many times in a year a company collects its receivables. Replicate the five steps in the Ratio Analysis Model on pages 320–321 to analyze the accounts receivable turnover ratios for The Hershey Company and Tootsie Roll Industries, Inc.: 1. Formulate the Question 2. Gather the Information from the Financial Statements 3. Calculate the Ratio 4. Compare the Ratio with Other Ratios 5. Interpret the Ratios

Part B. The Business Decision Model A lender must consider a variety of factors, including financial ratios, before making a loan. Replicate the five steps in the Business Decision Model on page 321 to decide whether to loan money to The Hershey Company:

1. Formulate the Question

2. Gather Information from the Financial Statements and Other Sources

3. Analyze the Information Gathered

4. Make the Decision

5. Monitor Your Decision