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 s millions) May 26, 2013 May 27, 2012 May 29, 2011 Net Sales $16.657.9 $14.380 2 Cost of Sales 11.350.2 10.613.2 892 Selling general and administrative expenses 3.5523 3.380.7 2. 1920 Divestitures (gain) Restructuring impairment, and other exit costs 101.6 Operating profit 2851.8 2562.4 27745 net 351.9 Earnings before income taxes and after tax earnings from joint ventures 2.210.5 709.5 882 15391 13035 Mercax earnings from joint ventures earnings including earnings attributable to redeemable and noncontrolling interests attributable to redeemable and noncontrolling interests ng attributable to General Mills 21.8 $1.567.3 $ 1.855 2 51.798.3 Balance Sheet (in millions except per share data) May 26, 2013 May 27, 2012 Assets $7414 1.446.4 1,5455 128.0 437.6 4.298.9 3,878.1 8,622.2 5.015.1 843.7 $ 22,658.0 $ 4712 1.323.6 1,478.8 59.7 358.1 3.6914 3,652.7 8.182.5 4.7049 8653 $ 21,096.8 Current assets 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 stockholders' equity Current liabilities 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 Redeemable interest $ 1,423.2 1,443.3 599.7 1.827.7 5.293.9 5.926.1 1.389.1 1.952.9 14.562.0 967.5 $ 1.148.9 7412 526.5 1,426.6 3.843.2 6,161.9 1.171.4 2.189.8 13.366.3 347.8 13.366.3 14.562.0 967.5 8.07 Total liabilities Redeemable interest 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 113.8 and 106.1 Accumulated other comprehensive loss Total stockholders' equity Noncontrolling interests 75.5 1,166.6 10,702.6 (3.687.2) (1.585.3) 6,6722 4563 7.128.5 $ 22,658.0 6.421.7 Total Equity Total liabilities and shareholders' equity $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 (5 millions). Net sales growth Cost of sales/Net sales Selling general and administrative expenses/Net sales Divestitures (gain.net Restructuring impairment and other it costs nterest net Income tax expense Pretax income Semester Company Analys 5.0% 63.9% 20.0% Net sales growth Cost of sales/Net sales Selling, general and administrative expenses/Net sales Divestitures (gain). net Restructuring, impairment, and other exit costs Interest, net Income tax expense/Pretax income After-tax earnings from joint ventures Net earnings attributable to noncontrolling interests/Net earnings before attribution $316.9 29.2% $98.8 2.0% Round answers to one decimal place. Do not use negative signs with your answers. 2014 Estimated Income Statement, Fiscal Years Ended ($ millions) Net sales Cost of sales Selling general and administrative expenses Divestitures (gain), net Restructuring impairment and other exit costs Operating profit Interest.net Earnings before income taxes and after-cax earnings from joint ventures income taxes ooooooo TERESSWEG Earnings before income taxes and after-tax earnings from joint ventures Income taxes After-tax earnings from joint ventures Net earnings, including earnings attributable to noncontrolling interests Net earnings attributable to noncontrolling interests Net earnings attributable to General Mills 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. (5 millions). Receivables/Net sales Inventories/Net sales Deferred income tax/Net sales Prepaid expenses and other current assets/Net sales Other intangible assets 50 amortization Other assets/Net sales 4.70 8. OL Accounts payable/Net sales Other current liabilities/Net sales 10.396 Current portion of long-term debt $1,181.9 Deferred income taxes/Net sales Other liabilities/Net sales Capital expenditures/Net tales Depreciation/Prior year net DPE Dividends/Net earnings attributable to General Mills Return to courte Round answers to one decimal place. . Do not use negative signs with your answers. Balance Sheet ($ millions) 2014 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 Return to co OOO o 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 Redeemable interest Stockholders equity Common stock Additional paid-in capital Retained earnings Common stock in treasury Accumulated other comprehensive loss Total stockholders equity Noncontrolling interests Total equity Total liabilities and Equity ooooooooo Check