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 2.606.1 Interest, net 401.6 Earnings before income tax expense and equity in income of affiliates 2.428.2 2.204.5 Income tax expense 721.1 7712 After-tax earnings from joint ventures 96.4 101.7 Net earnings including noncontrolling interests 1,535.0 Net earnings attributable to noncontrolling interests S 5.2 4.5 Net earnings attributable to General Mills $1,798.3 51.530.5 2.774.5 346.3 23 May 29, 2011 May 30, 2010 Balance Sheet ($ millions) Assets Cash and cash equivalents $ 619.6 5673.2 Balance Sheet ($ millions) May 29, 2011 May 30, 2010 Assets $619.6 1,162.3 1,609.3 27.3 483.5 3.902.0 3.345.9 6.750.8 3,813.3 862.5 $ 18.674.5 $673.2 1.041.6 1.344.0 42.7 378.5 3,480.0 3,127.7 6,592.8 3,715.0 763.4 $17.678.9 Cash and cash equivalents Receivables Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Land, buildings and equipment Goodwill Other intangible assets Other assets Total assets Liabilities and Equity Accounts payable Current portion of long-term debt Notes payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes Other liabilities Total liabilities Stockholders' equity Common stock, 754.6 shares issued, $0.10 par value Additional paid in capital 5995.1 1.031.3 311.3 1.321.5 3,659.2 5,542.5 1.127.4 1.733.2 12.062.3 S 849.5 107.3 1,050.1 1.762.2 3,769.1 5.268.5 874.6 2.118.7 12.030.9 75.5 75.5 1.307.1 1.319.8 Stockholders' equity Common stock, 754.6 shares issued, $0.10 par value Additional paid-in capital Retained earnings Common stock in treasury, at cost shares of 109.8 and 98.1 Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total Liabilities and Equity 75.5 1,319.8 9,191.3 (3.210.3) (1.010.8) 6,365. 5 246.7 6.612. 2 $ 18,674.5 75.5 1.307.1 8,122.4 (2,615.2) (1,486.9) 5 ,402.9 245.1 5 .648.0 $ 17,678.9 Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed). Assume that depreciation and amortization expense is included as part of selling, general and administrative expense (s millions). Net sales growth 4.0% Cost of sales/Net sales 60.0 Selling general and administrative expenses/Net sales 21.596 Divestitures (gain), net Restructuring, impairment, and other exit costs Interest, net $346.3 Income tax expense/Pretax income 29.796 After-tax earnings from joint ventures $96.4 Net earnings attributable to noncontrolling interests/Net earnings before attribution 0.596 S- Round answers one decimal place. Do not use negative signs with your answers. Income Statement, Fiscal Years Ended ($ millions) 2012 Estimated Net sales 5.475 2122712 2.863 34613 Cost of goods sold Selling general and administrative expenses Divestitures (gain). net Restructuring impairment, and other exit costs Operating income Interest expense Earnings before income tax expense and equity in income of affiliates Income tax expense Equity in income of affiliates Net earnings including noncontrolling interests Net earnings attributable to noncontrolling interest Net earnings attributable to General Mis 2516.7 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. (5 millions). Support Receivables/Net sales Inventories/Net sales Deferred income tax Nec sales Prepaid expenses and other current st/Net tales Other intangible assets Other Asset/Net sales Accounts payable/Net sales Other current abilities. Net sales Current portion of long-term debt Deferred Income tax Net sales Other abilities/Net sales Noncontrolling interest Capital expenditures/Nettles Depreciation/Prior yearner PPE Dividends/Net Income Current maturities of long-term dat in fcal 2012 increase by net income attributable to noncontre interest stume ne vienas Round answers one decimal place. wine wirken Round answers one decimal place. Do not use negative signs with your answers. 2012 Estimated Balance Sheet ($ millions) Assets Cash and cash equivalents Receivables Inventories Deferred income taxes Prepaid expenses and other Total current assets Land, buildings, and equipment Goodwill Other intangible assets Other assets Total assets Liabilities and equity Accounts payable Current portion of long-term debt Notes payable Other current liabilities Total current liabilite Total long-term deb matarre 619.6 x 1,207.1 1.671.3 M 31 495.2 40242 3.3342 6.750.8 897.6 15.006.8 X 1,036.9 733.6 3113 1,3773 3,459.1 5.542.5 1.176.1 1.795.1 11.972.8 > Liabilities and equity Accounts payable Current portion of long-term debt Notes payable Other current liabilities Total current liabilities Total long-term debt Deferred income taxes Other liabilities Total liabilities Stockholders equity Common stock Additional paid-in capital Retained earnings Common stock in treasury Accumulated other comprehensive loss Total shareholders equity Noncontrolling interests Total equity Total liabilities and Equity 75.5 1.319.8 1.382.62 2.777.9 256 3.033.9 15.006.8