Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 4 - Income Statement and Related Information - Review and Practice - Using Your Judgment - Financial Statement Analysis Case: Case 2 - Page 193: c

Answer

Tootsie Roll's P/E for 2014 is \$27.64, whereas Hershey's 2014 P/E ratio is 20.40. Based on the ratio, the quality of Tootsie Roll’s 2014 earnings is greater than the quality of Hershey’s 2014 earnings.

Work Step by Step

Tootsie Roll's P/E for 2014 is \$27.64, whereas Hershey's 2014 P/E ratio is 20.40. Based on the ratio, the quality of Tootsie Roll’s 2014 earnings is greater than the quality of Hershey’s 2014 earnings.
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