Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statements and balance sheets of General Mills, Inc. Income Statement, Fiscal

Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statements and balance sheets of General Mills, Inc.

Income Statement, Fiscal Years Ended ($ millions) May 29, 2011 May 30, 2010
Net Sales $ 14,880.2 $ 14,635.6
Cost of sales 8,926.7 8,835.4
Selling, general and administrative expenses 3,192.0 3,162.7
Divestitures (gain), net (17.4) --
Restructuring, impairment, and other exit costs 4.4 31.4
Operating income 2,774.5 2,606.1
Interest, net 346.3 401.6
Earnings before income tax expense and equity in income of affiliates 2,428.2 2,204.5
Income tax expense 721.1 771.2
After-tax earnings from joint ventures 96.4 101.7
Net earnings including noncontrolling interests 1,803.5 1,535.0
Net earnings attributable to noncontrolling interests 5.2 4.5
Net earnings attributable to General Mills $ 1,798.3 $ 1,530.5

Balance Sheet ($ millions) May 29, 2011 May 30, 2010
Assets
Cash and cash equivalents $ 619.6 $ 673.2
Receivables 1,162.3 1,041.6
Inventories 1,609.3 1,344.0
Deferred income taxes 27.3 42.7
Prepaid expenses and other current assets 483.5 378.5
Total current assets 3,902.0 3,480.0
Land, buildings and equipment 3,345.9 3,127.7
Goodwill 6,750.8 6,592.8
Other intangible assets 3,813.3 3,715.0
Other assets 862.5 763.4
Total assets $ 18,674.5 $ 17,678.9
Liabilities and Equity
Accounts payable $ 995.1 $ 849.5
Current portion of long-term debt 1,031.3 107.3
Notes payable 311.3 1,050.1
Other current liabilities 1,321.5 1,762.2
Total current liabilities 3,659.2 3,769.1
Long-term debt 5,542.5 5,268.5
Deferred income taxes 1,127.4 874.6
Other liabilities 1,733.2 2,118.7
Total liabilities 12,062.3 12,030.9
Stockholders' equity
Common stock, 754.6 shares issued, $0.10 par value 75.5 75.5
Additional paid-in capital 1,319.8 1,307.1
Retained earnings 9,191.3 8,122.4
Common stock in treasury, at cost, shares of 109.8 and 98.1 (3,210.3) (2,615.2)
Accumulated other comprehensive loss (1,010.8) (1,486.9)
Total shareholders' equity 6,365.5 5,402.9
Noncontrolling interests 246.7 245.1
Total equity 6,612.2 5,648.0
Total Liabilities and Equity $ 18,674.5 $ 17,678.9

Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed).

Net sales growth 5.5%
Cost of sales/Net sales 60.0%
Selling, general and administrative expenses/Net sales 21.5%
Divestitures (gain), net $--
Restructuring, impairment, and other exit costs $--
Interest, net $346.3
Income tax expense/Pretax income 29.7%
After-tax earnings from joint ventures $96.4
Net earnings attributable to noncontrolling interests/Net earnings before attribution 0.4%

Round answers to one decimal place.

Do not use negative signs with your answers.

Income Statement, Fiscal Years Ended ($ millions) 2012 Estimated
Net sales $Answer

Cost of goods sold Answer

Selling, general and administrative expenses Answer

Divestitures (gain), net Answer

Restructuring, impairment, and other exit costs Answer

Operating income Answer

Interest expense Answer

Earnings before income tax expense and equity in income of affiliates Answer

Income tax expense Answer

Equity in income of affiliates Answer

Net earnings including noncontrolling interests Answer

Net earnings attributable to noncontrolling interests Answer

Net earnings attributable to General Mills $Answer

Forecast General Mill's fiscal 2012 balance sheet using the following relations (assume"no change" for accounts not listed). Assume that all capital expenditures are purchases of land, building and equipment, net. ($ millions).

Receivables/Net sales 7.8%
Inventories/Net sales 10.8%
Deferred income tax/Net sales 0.2%
Prepaid expenses and other current assets/Net sales 3.2%
Other intangible assets $0 amortization
Other Assets/Net sales 5.8%
Accounts payable/Net sales 6.7%
Other current liabilities/Net sales 8.9%
Current portion of long-term debt $733.6
Deferred income taxes/Net sales 7.6%
Other liabilities/Net sales 11.6%
Noncontrolling interests *
Capital expenditures/Net sales 4.4%
Depreciation/Prior year net PPE 20.7%
Dividends/Net income 40.6%
Current maturities of long-term debt in fiscal 2013 $733.6
*increase by net income attributable to noncontrolling interests and assume no dividends

Round answers to one decimal place.

Do not use negative signs with your answers.

Balance Sheet ($ millions) 2012 Estimated
Assets
Cash and cash equivalents $Answer

Receivables Answer

Inventories Answer

Deferred income taxes Answer

Prepaid expenses and other Answer

Total current assets Answer

Land, buildings, and equipment Answer

Goodwill Answer

Other intangible assets Answer

Other assets Answer

Total assets $Answer

Liabilities and equity
Accounts payable $Answer

Current portion of long-term debt Answer

Notes payable Answer

Other current liabilities Answer

Total current liabilities Answer

Total long-term debt Answer

Deferred income taxes Answer

Other liabilities Answer

Total liabilities Answer

Stockholders equity
Common stock Answer

Additional paid-in capital Answer

Retained earnings Answer

Common stock in treasury Answer

Accumulated other comprehensive loss Answer

Total shareholders' equity Answer

Noncontrolling interests Answer

Total equity Answer

Total liabilities and Equity $ Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Factory Business System Audit Lean Manufacturing

Authors: Rolf Thorsten

1st Edition

1091908583, 978-1091908581

More Books

Students also viewed these Accounting questions