Analyzing, Forecasting, and Interpreting Income Statement and Balance Sheet Following are the income statement and balance sheet of General Mills, Inc. Income Statement, Fiscal Years Ended (in $ millions) May 26, 2013 May 27, 2012 May 29, 2011 Net Sales $ 17,774.1 $ 16,657.9 $ 14,880.2 Cost of Sales 11,350.2 10,613.2 8,926.7 Selling, general and administrative expenses 3,552.3 3,380.7 3,192.0 Divestitures (gain) -- -- (17.4) Restructuring, impairment, and other exit costs 19.8 101.6 4.4 Operating profit 2,851.8 2,562.4 2,774.5 Interest, net 316.9 351.9 346.3 Earnings before income taxes and after tax earnings from joint ventures 2,534.9 2,210.5 2,428.2 Income taxes 741.2 709.6 721.1 After-tax earnings from joint ventures 98.8 88.2 96.4 Net earnings, including earnings attributable to redeemable and noncontrolling interests 1,892.5 1,589.1 1,803.5 Net earnings attributable to redeemable and noncontrolling interests 37.3 21.8 5.2 Net earnings attributable to General Mills $ 1,855.2 $ 1,567.3 $ 1,798.3 Balance Sheet (in millions except per share data) May 26, 2013 May 27, 2012 Assets Current assets Cash and cash equivalents $ 741.4 $ 471.2 Receivables 1,446.4 1,323.6 Inventories 1,545.5 1,478.8 Deferred income taxes 128.0 59.7 Prepaid expenses and other current assets 437.6 358.1 Total current assets 4,298.9 3,691.4 Land, buildings, and equipment 3,878.1 3,652.7 Goodwill 8,622.2 8,182.5 Other intangible assets 5,015.1 4,704.9 Other assets 843.7 865.3 Total assets $ 22,658.0 $ 21,096.8 Liabilities and stockholders' equity Current liabilities Accounts payable $ 1,423.2 $ 1,148.9 Current portion of long-term debt 1,443.3 741.2 Notes payable 599.7 526.5 Other current liabilities 1,827.7 1,426.6 Total current liabilities 5,293.9 3,843.2 Long-term debt 5,926.1 6,161.9 Deferred income taxes 1,389.1 1,171.4 Other liabilities 1,952.9 2,189.8 Total liabilities 14,562.0 13,366.3 Redeemable interest 967.5 847.8 Stockholders' equity Common stock, 754.6 shares issued, $0.10 par value 75.5 75.5 Additional paid-in capital 1,166.6 1,308.4 Retained earnings 10,702.6 9,958.5 Common stock in treasury, at cost, shares of 113.8 and 106.1 (3,687.2) (3,177.0) Accumulated other comprehensive loss (1,585.3) (1,743.7) Total stockholders' equity 6,672.2 6,421.7 Noncontrolling interests 456.3 461.0 Total Equity 7,128.5 6,882.7 Total liabilities and shareholders' equity $ 22,658.0 $ 21,096.8 Forecast General Mill's fiscal 2014 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 ($ millions). Net sales growth 5.0% Cost of sales/Net sales 63.9% Selling, general and administrative expenses/Net sales 20.0% Divestitures (gain), net $-- Restructuring, impairment, and other exit costs $-- Interest, net $316.9 Income tax expense/Pretax income 29.2% After-tax earnings from joint ventures $98.8 Net earnings attributable to noncontrolling interests/Net earnings before attribution 2.0% Round answers to one decimal place. Do not use negative signs with your answers. Income Statement, Fiscal Years Ended ($ millions) 2014 Estimated Net sales $ Answer Correct Cost of sales Answer Correct Selling, general and administrative expenses Answer Correct Divestitures (gain), net Answer Correct Restructuring, impairment, and other exit costs Answer Correct Operating profit Answer Correct Interest. net Answer Correct Earnings before income taxes and after-tax earnings from joint ventures Answer Correct Income taxes Answer Correct After-tax earnings from joint ventures Answer Correct Net earnings, including earnings attributable to noncontrolling interests Answer Correct Net earnings attributable to noncontrolling interests Answer Correct Net earnings attributable to General Mills $ Answer Correct Forecast General Mill's fiscal 2014 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). Cash/Net sales 4.2% Receivables/Net sales 8.1% Inventories/Net sales 8.7% Deferred income tax/Net sales 0.7% Prepaid expenses and other current assets/Net sales 2.5% Other intangible assets $0 amortization Other assets/Net sales 4.7% Accounts payable/Net sales 8.0% Other current liabilities/Net sales 10.3% Current portion of long-term debt $1,181.9 Deferred income taxes/Net sales 7.8% Other liabilities/Net sales 11.0% Capital expenditures/Net sales 3.5% Depreciation/Prior year net PPE 16.1% Dividends/Net earnings attributable to General Mills 46.8% Round answers to one decimal place. *Use a negative sign with answers for: 1. Common stock in treasury and 2. Accumulated other comprehensive income. Balance Sheet ($ millions) 2014 Estimated Assets Cash and cash equivalents $ Answer Incorrect Receivables Answer Incorrect Inventories Answer Incorrect Deferred income taxes Answer Incorrect Prepaid expenses and other Answer Incorrect Total current assets Answer Incorrect Land, buildings, and equipment Answer Incorrect Goodwill Answer Incorrect Other intangible assets Answer Incorrect Other assets Answer Incorrect Total assets $ Answer Incorrect Liabilities and equity Accounts payable $ Answer Incorrect Short-term debt $ Answer Incorrect Current portion of long-term debt Answer Incorrect Notes payable Answer Incorrect Other current liabilities Answer Incorrect Total current liabilities Answer Incorrect Total long-term debt Answer Incorrect Deferred income taxes Answer Incorrect Other liabilities Answer Incorrect Total liabilities Answer Incorrect Redeemable interest Answer Incorrect Stockholders equity Common stock Answer Incorrect Additional paid-in capital Answer Incorrect Retained earnings Answer Incorrect Common stock in treasury* Answer Incorrect Accumulated other comprehensive income* Answer Incorrect Total stockholders' equity Answer Incorrect Noncontrolling interests Answer Incorrect Total equity Answer Incorrect Total liabilities and Equity $ Answer Incorrect