Following are the income statements and balance sheets of (ieneral Mills, Inc. * Goodwill, other intangible assets,
Question:
Following are the income statements and balance sheets of (ieneral Mills, Inc.
* Goodwill, other intangible assets, and other assets are combined \({ }^{* *}\) Deferred income taxes and other current liabilities are combined.
a. Forecast General Mills' 2009 income statement and balance sheet using the following relations (assume no change for all other accounts not listed below). Assume all capital expenditures are purchases of land, buildings and equipment, net, and that depreciation and amortization are included as part of selling, general and administrative expense ( \(\$\) millions).
b. What does the forecasted cash balance from part \(a\) reveal to us about the forecasted financing needs of the company? Explain.
Step by Step Answer:
Financial Accounting For MBAs
ISBN: 9781934319345
4th Edition
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally