Analyzing and Interpreting Pension Disclosures Assume General Mills reports the following pension footnote in its 10K report. (a) Which of the statements below best describes what is meant by service cost and interest cost? during the year. pension plan. (b) What is the total amount paid to retirees during fiscal 2010? $ million) What is the source of funds to make these payments to retirees? Opension assets Opension liabilities Ooperating cash flows Opension obligations The funding for payments to retirees comes from the pension assets. General Mills, therefore, does not need to contribute its own funds to the pension plan. OContributions to pension plans are made mostly by employees. Any contributions that General Mills makes are purely voluntary. The funding for payments to retirees comes from pension assets. General Mills' plans are overfunded and investment returns currently provide the cash inflow. Federal law does not require companies to fund pension plans. Any contributions that General Mills makes are purely voluntary. (f) Which of the following statements best describes the effect from a substantial decline in the financial markets on General Mills' contribution to its pension plans? have no effect. OGeneral Mills' pension plans are not affected by fluctuations in the general financial markets. There would be no effect on General Mills. OGeneral Mills' contributions to its pension plans are purely voluntary. Fluctuations in the general financial markets would, therefore, have no effect. Oshould pension investments decline as a result of a decline in the financial markets, General Mills might be required to increase its cash contribution to the pension plan. (c) Compute the 2010 funded status for the company's pension plan. Use a negative sign to indicate the pension plan is underfunded, if applicable. (\$ million) (d) Which of the following statements best describes what are the plan amendment adjustments, and how they differ from actuarial gains and losses? plan as a result of those estimates. made in accounting for the plan as a result of those estimates. liability arising from amendments to the plan itself. amendments to the plan itself. OThe funding for payments to retirees comes from the pension assets. General Mills, therefore, does not need to contribute its own funds to the pension plan. OContributions to pension plans are made mostly by employees. Any contributions that General Mills makes are purely voluntary. OThe funding for payments to retirees comes from pension assets. General Mills' plans are overfunded and investment returns currently provide the cash inflow. OFederal law does not require companies to fund pension plans. Any contributions that General Mills makes are purely voluntary