Question
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 | 5.0% |
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 | $96.4 |
Net earnings attributable to noncontrolling interests/Net earnings before attribution | 0.3% |
Forecast General Mill's fiscal 2012 balance sheet using the following relations (assume"no change" for accounts not listed). Assume that all capital expenditures are purchases of land, building and equipment, net. ($ 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 comprehensiveloss | 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started