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	3.0%
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
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 interests
Net earnings attributable to General Mills

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 a negative signs with your answers.

Balance Sheet ($ millions)	2012 Estimated
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 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