Accounting Research Problem: General Mills, Inc. The fiscal year 2017 annual report of Gen-

eral Mills, Inc. is available on this books web site.

Required

a. Calculate (or identify) the following financial ratios for 2016 and 2017:

1. Gross profit percentage

2. Return on sales

3. Asset turnover (2015, total assets 5 $21,832.0 million)

4. Return on assets (2015, total assets 5 $21,832.0 million)

5. Return on common stockholders equity (2015, total stockholders equity 5

$4,996.7 million)

6. Current ratio

7. Quick ratio

8. Operating-cash-flow-to-current-liabilities ratio (2015, current liabilities 5 $4,890.1

million)

9. Accounts receivable turnover (2015, accounts receivable 5 $1,386.7 million)

10. Average collection period

11. Inventory turnover (2015, inventory 5 $1,540.9 million)

12. Days sales in inventory

13. Debt-to-equity ratio

14. Times-interest-earned ratio

15. Operating-cash-flow-to-capital-expenditures ratio

16. Earnings per share

17. Price-earnings ratio (Use year-end adjusted closing stock price of $57.32 for 2017 and

$63.69 for 2016.)

18. Dividend yield

19. Dividend payout ratio

b. Comment briefly on the changes from fiscal 2016 to fiscal 2017 in the ratios computed above.

Fiscal Year Report:

FISCAL 2017 FINANCIAL HIGHLIGHTS change on a 52 weeks ended 52 weeks ended constant In millions, except per share May 29, 2016 Change May 28, 2017 currency basis and profit margin data Net Sales $15,620 $16,563 6% Organic Net Sales -4% Operating Profit 2,566 2,707 5% Total Segment Operating Profit -1 % 2,953 3,000 -2% Operating Profit Margin +10 basis points 16.3% 16.4% Adjusted Operating Profit Margin Net Earnings Attributable to General Mills +130 basis points 18.1% 16.8% 1,658 1,697 -2% Diluted Earnings per Share (EPS) $ $ 2.77 2.77 0% Adjusted Diluted EPS, Excluding Certain Items Affecting Comparability $ 3.08 $ 2.92 5% 6% Average Diluted Shares Outstanding 598 612 -2% Dividends per Share $ 1.92 $ 1.78 8% Total Segment Operating Profit Adjusted Diluted Earnings per Share Net Sales Dollars Dollars in millions Dollars in millions $2,953 $3.08 $15,620 2017 2017 2017 $16,563 $3,000 $2.92 2016 2016 2016 $2.86 $17,630 $3,035 2015 2015 2015 $17,910 $3,154 $2.82 2014 2014 2014 $17,774 $3,223 $2.72 2013 2013 2013 See page 35 for discussion of non-GAAP measures. FISCAL 2017 FINANCIAL HIGHLIGHTS change on a 52 weeks ended 52 weeks ended constant In millions, except per share May 29, 2016 Change May 28, 2017 currency basis and profit margin data Net Sales $15,620 $16,563 6% Organic Net Sales -4% Operating Profit 2,566 2,707 5% Total Segment Operating Profit -1 % 2,953 3,000 -2% Operating Profit Margin +10 basis points 16.3% 16.4% Adjusted Operating Profit Margin Net Earnings Attributable to General Mills +130 basis points 18.1% 16.8% 1,658 1,697 -2% Diluted Earnings per Share (EPS) $ $ 2.77 2.77 0% Adjusted Diluted EPS, Excluding Certain Items Affecting Comparability $ 3.08 $ 2.92 5% 6% Average Diluted Shares Outstanding 598 612 -2% Dividends per Share $ 1.92 $ 1.78 8% Total Segment Operating Profit Adjusted Diluted Earnings per Share Net Sales Dollars Dollars in millions Dollars in millions $2,953 $3.08 $15,620 2017 2017 2017 $16,563 $3,000 $2.92 2016 2016 2016 $2.86 $17,630 $3,035 2015 2015 2015 $17,910 $3,154 $2.82 2014 2014 2014 $17,774 $3,223 $2.72 2013 2013 2013 See page 35 for discussion of non-GAAP measures