Reading General Mills’s Balance Sheet Refer to General Mills’s balance sheet reproduced at the back of the book to answer the following questions.

Required 1. Which is the largest of General Mills’s current assets on May 28, 2006? What percentage of total current assets does it represent? Is it favorable or unfavorable that this is the company’s largest current asset? Explain your answer.

2. Which is the second largest of General Mills’s current assets on May 28, 2006? What percentage of total current assets does it represent? Explain what this asset represents and why it is such a significant asset for a company such as General Mills.

3. Explain what events would cause each of those accounts to both increase and decrease during the year.