Hershey Foods Corporation, located in Hershey, Pennsylvania, is the leading North American manufacturer of chocolate—for example, Hershey’s Kisses, Reese’s Peanut Butter Cups, Kit Kat, and Take 5 bars. Imagine that you are considering the purchase of shares of Hershey’s common stock.
Instructions
Answer these questions related to your decision whether to invest.
(a) What financial statements should you request from the company?
(b) What should these financial statements tell you?
(c) Should you request audited financial statements? Explain.
(d) Appendix B at the end of this book contains financial statements for Hershey Foods. What comparisons can you make between Tootsie Roll and Hershey in terms of their respective results from operations and financial position?