ACC 561 Week 3: Team Assignment: Tootsie Roll Industries Inc. Loan Package

Please read the detailed instructions for this assignment in the learning activities for this week.  You must follow all instructions for this assignment.  Please see the attached grading rubric for this assignment.

Read the financial statement for Tootsie Roll Industries Inc. in Appendix A of Accounting.  Use the financial information from this appendix for this assignment.

Conduct an Internet search information on how to assemble a loan package by researching loan package requirements at The U.S. Small Business Administration website (http://www.sba.gov/) or on other websites, such as the SCORE website (http://www.score.org/). Research the specific loan package requirements of creditors, such as American Express, by reviewing their websites.

Prepare a loan package of approximately1,250 words to secure a loan for Tootsie Roll Industries Inc. that would increase the company's total liabilities by 10%. Your loan package should include the following:

• A ratio analysis of the financial statements for Tootsie Roll Industries Inc., including several types of liquidity, solvency, and profitability ratios and an explanation of each ratio

• A justification of the reason the company needs this loan; the purpose might be for expansion, inventory purchases, debt retirement, and so on

• An explanation of how the company plans use the proceeds from the loan and of how loan approval might affect the company