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 5 16.657.9 5 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 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 99.8 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 Net earnings attributable to General Mills $ 1,855.2 $1.567.3 $ 1.798.3 May 26, 2013 May 27, 2012 $ 741.4 1.446.4 1,545.5 128.0 427.6 Balance Sheet (in millions excent per share data) Assets 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 4.298.9 3,878.1 8.622.2 5.015.1 843.7 $ 22,658.0 5471.2 1.323.6 1,478.8 59.7 358.1 3.691.4 3,652.7 8.182.5 4.704.9 865.3 21.096.8 $1,4232 1,4433 599.7 1.827.7 5.293.9 5.926.1 1.389.1 1.952.9 14.562.0 967,5 5 1.148.9 741.2 526.5 1.426.6 3,843.2 6,161.9 1.171.4 2.189.8 13.366.3 347.8 1 2 1.389. 1 1.952. 9 14.562.0 967. 5 .171.4 .199.8 13,366.3 847.8 Deferred income taxes Other liabilities Total liabilities Redeemable interest Stockholders' equity Common stock, 754.6 shares issued, 50.10 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 Total Equity Total liabilities and shareholders' equity 75.5 1.166.6 10.702.6 (3.687.2) (1.585.3) 6.672.2 456.3 7.128.5 5 22.658.0 75.5 1,308.4 9,958.5 (3.177.0) (1.743.7) 6.421.7 461.0 6.892.7 $ 21,096.8 Forecast General Mill's fiscal 2014 income statement using the following relations (assume "no change for account depreciation and amortization expense is included as part of selling, general and administrative expense (5 millions Net sales growth 5.Om Cost of sales/Net sales 63.99 Selling general and administrative expenses/Net sales 20.0" Divestitures (gain), net Restructuring impairment and other excit costs Interest, net $316.9 Income tax expense/Pretax income 29.29 After-tax earnings from joint ventures SRB 14.562.0 967.5 133663 947.8 JUL Notes Redeemable interest Stockholders' equity Common stock, 754.6 shares issued. 50.10 par value Additional pald-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 Total Equity Total liabilities and shareholders' equity 75.5 1.166.6 10.702.6 (76872) (1.585.3) 66722 456.3 7.128.5 $ 22.658.0 755 1.308.4 9.958.5 6.177.0) (1.743.7) 6.421.7 461.0 6.892.7 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 et costs Interest net $316.9 Income tax expense/Pretax income 29.296 After-tax earnings from joint ventures $98.3 Net earnings attributable to noncontrolling interests/et earnings before attribution 2.09 Round answers to one decimal place. Do not use negative signs with your answers. 2014 Estimated Income Statement, Fiscal Years Ended (5 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 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). ReceivableNet sales Inventories/Net sales Deferred income tax/Net sales Prepaid expenses and other current assets/Net sales Other intangible assets SO amortization 2014 Estimated Balance Sheet (5 millions) 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 Labilities 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 abilities Total liabilities Redeemable interest Stockholders equity Common stock 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 Check