Appendix B of this book contains a copy of the 2002 annual report of General Mills, Inc. Required

Review the annual report and write a short report in which you respond to each of the issues raised below.

A. Identify the accounting methods used by the company to account for plant assets, intangible assets, research and development costs, and advertising costs.

B. Identify the cost of each of the company’s types of plant assets and the total amount of accumulated depreciation on these assets at the end of the most recent period reported.

C. Explain how the company reports its holdings of marketable securities in the financial statements. What percentage of its marketable securities (based on market value) are expected to be liquidated within one year? What percentage over more than one year and up to seven years? What amount over more than seven years?

D. Explain the change in the company’s plant asset accounts during the most recent year reported by an analysis of its investment activities and depreciation. (Hint: Because of certain accounting complexities, you won’t be able to prove the change exactly. But see how much of the change you can explain.)