Following are the income statements and balance sheets of General Mills, Inc.

a. Forecast General Mills' fiscal 2014 income statement and balance sheet using the following relations. Assume all capital expenditures are purchases of land, buildings and equipment, net, and that depreciation and amortization expense is included as part of selling, general and administrative expense (\$ millions).

b. What does the forecasted adjustment to balance the accounting equation from part a reveal to us about the forecasted financing needs of the company? Explain.

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Income Statement, Fiscal Years Ended (in millions) Net sales.... Cost of sales.. Selling, general and administrative expenses. Divestitures (gain) ...... Restructuring, impairment, and other exit costs Operating profit. Interest, net... Earnings before income taxes and after-tax earnings from joint ventures Income taxes.. After-tax earnings from joint ventures Net earnings, including earnings attributable to redeemable and noncontrolling interests.. Net earnings attributable to redeemable and noncontrolling interests Net earnings attributable to General Mills May 26, 2013 May 27, 2012 $17,774.1 $16,657.9 11,350.2 10,613.2 3,552.3 3,380.7 19.8 2,851.8 316.9 2,534.9 741.2 98.8 1,892.5 37.3 $ 1,855.2 101.6 2,562.4 351.9 2,210.5 709.6 88.2 1,589.1 21.8 $ 1,567.3 May 29, 2011 $14,880.2 8,926.7 3,192.0 (17.4) 4.4 2,774.5 346.3 2,428.2 721.1 96.4 1,803.5 5.2 $ 1,798.3