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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 6.0%
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 0.5%

  • Round all 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 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

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