Business Plan and Loan Package - 1412 Words

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 Like†¦show more content†¦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, amp; 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, amp; 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 priceShow MoreRelatedTootsie Roll Paper706 Words   |  3 PagesRunning head: TOOTSIE ROLL INDUSTRIES INC. LOAN PACKAGE    1 Tootsie Roll Industries Inc. Loan Package TOOTSIE ROLL INDUSTRIES INC. LOAN PACKAGE Tootsie Roll Industries Inc. Loan Package The financial statement of Tootsie Roll Industries provides insightful details into the 2 financial activities of the decades old organization. A financial statement is the â€Å"summary report that shows how a firm has used the funds entrusted to it by its stockholders and lenders, and what is itsRead MoreAcc/561 Wk3 Tootsie Roll Industries Inc. Loan Package1239 Words   |  5 PagesTootsie Roll Industries Inc. Loan Package ACC/561 - Accounting August 15, 2011 Tootsie Roll Industries Inc. Loan Package 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 inRead MoreTootsie Roll Industries Loan Package1614 Words   |  7 PagesTootsie Roll Industries Loan Package Tootsie Roll Industries is one of America’s most recognized confectionary companies and has been in business for more than 111 years, manufacturing and selling some of the most popular candies in the world. Tootsie Roll wants to secure a loan that will help increase the company’s total liabilities by 10% in the tune of $2.5 million. This loan package is attached to an updated business plan that provides the lender with the company’s history, a vision statementRead MoreTootsie Roll Loan1548 Words   |  7 PagesTootsie Roll Industries Inc. Loan Package University of Phoenix Tootsie Roll Industries Inc. Loan Package Tootsie Roll Industry Inc. will be preparing a loan package to maintain ultimate company performance, maximize the company’s profits, and increase the shareholder’s value. Tootsie Roll Industry Inc. will be applying for a loan that will increase the company’s total liability by $17,449.50. A perfect loan package includes a concise executiveRead MoreGuillermo Furniture Store Analysis1305 Words   |  6 PagesRoll Industries, Inc.: Loan Package Tootsie Roll Industries, Inc.: Loan Package 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. 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Loan Package In week three, Learning Team E presents a loan package for public held company, Tootsie Roll Industries, Inc., in business for over 100 years. Tootsie Roll is a manufacturer of confectionary products. In addition to sales in the United States, Tootsie Roll’s profits grew in Mexico, Canada, Europe, Asia, South and Central America. This loan package consists of three sections: Financial Ratios, CorporateRead MoreAn Article On U.s. Banking Essay1620 Words   |  7 Pagesfunds, but entrepreneurs were somewhat floating alone in help on floating that loan! So, let s try and Canadianize that comment a bit with respect to a franchise loan in Canada, with emphasis on how to successfully loosen the purse strings of those franchise lenders for your funding needs. Two critical components of success in franchising funding are your overall package of information, including a business plan and cash flow document, as well as owner capital. For non-financial types, thoseRead MoreAcc 561 W eek 3 Team Tootsie Roll Loan Paper1358 Words   |  6 PagesTootsie Roll Industries, Inc. Loan Package ACC/561 Tootsie Roll Industries, Inc. Loan Package In week three, Learning Team E presents a loan package for public held company, Tootsie Roll Industries, Inc., in business for over 100 years. Tootsie Roll is a manufacturer of confectionery products. In addition to sales in the United States, Tootsie Roll’s profits grew in Mexico, Canada, Europe, Asia, South and Central America. This loan package consists of three sections: Financial Ratios, CorporateRead MoreWhat Is The True Cost Of Higher Education?1594 Words   |  7 PagesMethods 316 May 6, 2016 What is the true cost of higher education?† College is something that is brought up during freshman year of high school and again in junior to senior year while visiting and sending in their applications to attend or have a plan if not attending college. Most student’s freshman year in high school their decision then is based off if parent didn’t go they wouldn’t go. During freshman year in high school their going through phase where they are discovering who they are based