4 quick answers -

(1) Identity Liabilities and Interest Expense and reconcile long term borrowing activity. (2) Identify par value, the number of shares issued and the number of shares authorized. (3) Describe the composition of the long term liabilities. (4) Determine the book value per share of the common stock. 6

***Responses exhibit strong critical thinking and appropriate analysis.

\fSupplemental Schedule of Sales and Earnings (million dollars) Year II Year 10 Year 9 Sales Earnings Sales Earnings Sales Earnings 1 Contributions by division Campbell North America Campbell U.5.A. $3,911.8 $632.7 $3,932.7 $370.8 $3,666.9 $242.3 Campbell Canada 352.0 35.3 384.0 25.6 313.4 23.8 4,263.8 668.0 4,316.7 396.4 3,980.3 266.1 Campbell Biscuit and Bakery Pepperidge Farm 569.0 73.6 582.0 57.0 548.4 53.6 International Biscuit 219.4 17.6 195.3 8.9 178.0 11.7 788.4 91.2 777.3 65.9 726.4 65.3 Campbell International 1,222.9 39.4 1,189.8 (168.6) ,030.3 (117.8 Interdivision (71.0) (78.0) (64.9) Total sales $6,204.1 $6,205.8 $5,672.1 Total operating earnings 798.6 293.7 213.6 Unallocated corporate expenses (41.1) (16.5) (31.3 Interest, net (90.2) (94.0) (55.8 Foreign currency translation adjustments . 1 (3.8) (20.0 Taxes on earnings (265.9) (175.0) (93.4) Not earnings $401.5 $4.4 $13.1 Net earnings per share $.3.16 $.03 $.10 Contributions by division in Year 10 include the effects of divestitures, restructuring and unusual charges of $339.1 million as follows: Campbell U.S.A. $121.8 million, Campbell Canada $6 6 million, Pepperidge Farm $11.0 million, International Biscuit $143 million, and Campbell International $185.4 million. Contributions by division in Year 9 include the effects of restructuring and unusual charges of $343 0 million as follows Campbell U.SA. $183.1 million, Campbell Canada $6.0 million, Pepperidge Farm $71 million, International Biscuit 19.5 million, and Campbell International $1373 million.\fConsolidated Statements of Earnings (millions) Year 11 Year 10 Year 9 13 NET SALES $6,204.1 $6,205.8 $5,672.1 Costs and expenses 14 Cost of products sold 4,095.5 4,258.2 4,001.6 15 Marketing and selling expenses 956.2 980.5 818.8 16 Administrative expenses 306.7 290.7 252.1 Research and development expenses 56.3 53.7 47.7 18 Interest expense (Note 3) 116.2 111.6 94,1 19 Interest income (26.0) (17.6) (38.3 20 Foreign exchange losses, net (Note 4) .8 3.3 19.3 21 Other expense (Note 5) 26.2 14.7 32.4 22 Divestitures, restructuring and unusual charges (Note 6) 339.1 343.0 22A Total costs and expenses $5,531.9 $6,034.2 $5,570.7 23 Earnings before equity in earnings of affiliates and minority interests $ 672.2 $ 171.6 $ 101.4 24 Equity in earnings of affiliates 2.4 13.5 10.4 25 Minority interests (7.2) (5.7) (5.3 26 Earnings before taxes 667.4 179.4 106. 27 Taxes on earnings (Note 9) 265.9 175.0 93.4 28 Net earnings $ 401.5 4.4 $ 13.1 29 Not earnings per share (Note 22) S 3.16 S .10 30 Weighted average shares outstanding 127.0 129.6 129.3Page 219 Case 3-2 Analyzing and Interpreting Liabilities Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Identify Campbell Soup's major categories of liabilities. Identify which of these liabilities require recognition of interest expense. b. Reconcile activity in the long-term borrowing account for Year 11. c. Describe the composition of Campbell Soup's long-term liabilities account using its note 19. Page 220CASE 3-3 Analyzing and Interpreting Equity Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Determine the book value per share of Campbell Soup's common stock for Year 11. b. Identify the par value of Campbell Soup's common shares. Determine the number of common shares authorized, issued, and outstanding at the end of Year 11. c. Determine how many common shares Campbell Soup repurchased as treasury stock for Year 11. Determine the price at which Campbell Soup repurchased the shares. CHECK (c) Year 11 repurchase price, $51.72 Page 219 Case 3-2 Analyzing and Interpreting Liabilities Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Identify Campbell Soup's major categories of liabilities. Identify which of these liabilities require recognition of interest expense. b. Reconcile activity in the long-term borrowing account for Year 11. c. Describe the composition of Campbell Soup's long-term liabilities account using its note 19. Page 220CASE 3-3 Analyzing and Interpreting Equity Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Determine the book value per share of Campbell Soup's common stock for Year 11. b. Identify the par value of Campbell Soup's common shares. Determine the number of common shares authorized, issued, and outstanding at the end of Year 11. c. Determine how many common shares Campbell Soup repurchased as treasury stock for Year 11. Determine the price at which Campbell Soup repurchased the shares. CHECK (c) Year 11 repurchase price, $51.72