Evaluating the Liabilities of General Mills Refer to the General Mills fi nancial statements at the end of the text and answer the following questions:

1. What are the items listed as long-term liabilities by General Mills? How did those liabilities change from 2007 to 2008?

2. Calculate the debt-to-equity ratio and the times interest earned ratio of the company for 2007 and 2008. What do those ratios reveal about the company and its ability to meet its obligations on its long-term liabilities?

AppendixLO1