Tootsie Roll
Tootsie Roll’s reason’s and purpose for Loan In view of the economic recession, financial loan approvals has been few. The gradual recovery of the economy has made it more likely, though still difficult, to receive the benefits of a loan. Resource management is a prime consideration. Anticipating our needs is better than looking for financial opportunities under pressure. During transitional periods, such as expansion and acquisition, financial liquidity are critical to meet obligations. Tootsie Roll has historically achieved growth through acquisitions since 1968 and will continue to do so whenever possibilities arise. It is an effective way to strength market position and has shown remarkable success during recessionary environments. Increasing Working Capital would assist in acquisitions, operations or expansion of existing business. Although our business is not seasonal, we are affected critically by Halloween, a seasonal event. This event is when production increases greatly, and we must make sure we have enough to meet short-term obligations. The factors of success for our business has been innovation and maintaining control over services that not only reduce operating cost but reinforce independence. We are looking to expand, upgrade, and improve processes of our sugar refinery, printing press and the stick production for our candies. We also rebuild our machinery in-house.
In the next upcoming years tootsie roll will benchmark industries (including others outside of our own) to further reduce operating cost or development of new flavors (e.g. Lays potato chips). The increase in prices to purchase the ingredients for production and packing materials, the effect of foreign currencies and reliance on third parties for various goods and services are among the risks that produce uncertainties that could adversely affect our financial results.
Kimmel, P. & Weygandt, & Kieso, D (2011), Accounting: Tools for making business decisions, 4th
In the next upcoming years tootsie roll will benchmark industries (including others outside of our own) to further reduce operating cost or development of new flavors (e.g. Lays potato chips). The increase in prices to purchase the ingredients for production and packing materials, the effect of foreign currencies and reliance on third parties for various goods and services are among the risks that produce uncertainties that could adversely affect our financial results.
Kimmel, P. & Weygandt, & Kieso, D (2011), Accounting: Tools for making business decisions, 4th