by Analysis and interpretation -04, 5, 6, 7, 8 MONDELEZ INTERNATIONAL P3-56. Analysis and Interpretation of Profitability Analysis and Interpretat es with Mondelez International Inc. is one of the world's largest snacks con balance sheets and income includes: Nabisco, Orco, Milk C Oreo, Milka, Cadbury and Textent. The company's balance sheets and income hury and Tridem cs Follow Refer to these financial statements were Matements to answer the requirements MONDELEZ INTERNATIONAL INC. Consolidated Statement of Earnings $20,036 2014 534,244 21.647 12.597 2013 $35.29 22.180 13.110 For the Years Ended December 31 en millions Net revenues ... Cost of sales Gross profit Selling general and administrative exp Asset impairment and exit costs... Gains on coffee business transac 11.512 7.577 692 273 16.822) 217 3,242 3.971 1.579 1.013 7.884 2.554 2392 593 7.291 2.201 Loss on decanolidation of Venezuela Amortization of intangibles... Operating income... Interest and other expense, net Earnings from continuing operations before income taxes... Provision for income taxes.. Earnings from continuing operations.. Earnings from discontinued operations net of income taxes ... Net earnings. Noncontrolling interest..... Net earnings attributable to Mondelez International... 2332 1.803 3,935 2,201 20 $ 7.267 $ 2,184 $ 3,915 2015 2014 $ 1,870 $ 1.631 MONDELEZ INTERNATIONAL INC. Consolidated Balance Sheets As of December 31 fin millions, expect share data) Assets Cash and cash equivalents ....... Trade receivables (net of allowances of $54 at 2015 and 566 at 2014).. Other receivables (net of allowances of $109 at 2015 and $91 at 2014) ........ Inventories, net.................... Deferred income taxes......... Other current assets.............. 2,634 3,802 1,212 2,609 Total current assets ......... Property, plant and equipment, net ..... Goodwill Intangible assets, net Prepaid pension assets ........ Equity method investments ..... Other assets.... Total Assets..... 633 8,958 8,362 20,664 18,768 69 5,387 635 $62,843 949 3,480 480 1,408 11,750 9,827 23,389 20,335 53 662 $66,771 continued Module 3 Port Avand interpretation December 31 in millions, expect share data 3-60 2015 2014 $ 236 605 1.634 844 2,713 10.922 14.557 4,750 $ 1.305 1,530 5.299 2.047 946 2,880 14.007 13.821 5,512 2.912 526 2,140 $38.918 2.183 Liabilities.. . Short-term borrowings....... Current portion of long-term debt... Accounts payable.. Accrued marketing.... Accrued employment costs.. Other current liabilities Total current liabilities...... Long-term debt. Deferred income taxes........ Accrued pension costs. Accrued postretirement health care coste Other liabilities... Total abilities...... Equity Common stock, no par value (1,996.537.778 shares issued at 2015 and 2014). Additional paid-in capital ....... Retained earnings ........ Accumulated other comprehensive losses ... Treasury stock, at cost...... Total Mondelz International shareholders' equity... Noncontrolling interest 499 1,832 $34,743 31,760 20.700 19.9860 (14,462) 28.012 31,651 14.529 (7,318) (11,112) 27.750 103 Total equity .......... Total liabilties and equity...... 28.100 27.853 $66,771 $62,843 Required a. Compute net operating profit after tax (NOPAT) for 2015. Assume that the combined federal and state statutory tax rate is 37%. b. Compute net operating assets (NOA) for 2015 and 2014. c. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2015: confirm that RNOA = NOPM X NOAT. The median NOPM and NOAT for companies in the packaged food industry is 5% and 2.1, with a median RNOA of 10.5%. Comment on NOPM and NOAT estimates for Mondelez in comparison to industry medians. d. Compute net nonoperating obligations (NNO) for 2015 and 2014. Confirm the relation: NOANNO + Total equity. e. Compute return on equity (ROE) for 2015. 1. Infer the nonoperating return component of ROE for 2015. g. Comment on the difference between ROE and RNOA. What does this relation suggest about Monde- lez's use of debt? P3-57. Direct Computation of Nonoperating Return Refer to the financial information of Mondelez International Inc. in P3-56 to answer the following requirements. Required a. Assume that 2015 net nonoperating expenses (NNE) are $638 million and that NOA is $41.628 mil- lion and $42.878 million in 2015 and 2014, respectively. Compute financial leverage (FLEV) and Spread for 2015. " Compute the 2015 return on equity. The NCI ratio for 2015 is 0.999. Confirm computations to yield the relation: ROE = TRNOA + (FLEV X Spread)] X NCI ratio. c. What do your computations of the nonoperating return in parts a and b imply about the company's use of borrowed funds? LOS MONDE INTERNAT INC by Analysis and interpretation -04, 5, 6, 7, 8 MONDELEZ INTERNATIONAL P3-56. Analysis and Interpretation of Profitability Analysis and Interpretat es with Mondelez International Inc. is one of the world's largest snacks con balance sheets and income includes: Nabisco, Orco, Milk C Oreo, Milka, Cadbury and Textent. The company's balance sheets and income hury and Tridem cs Follow Refer to these financial statements were Matements to answer the requirements MONDELEZ INTERNATIONAL INC. Consolidated Statement of Earnings $20,036 2014 534,244 21.647 12.597 2013 $35.29 22.180 13.110 For the Years Ended December 31 en millions Net revenues ... Cost of sales Gross profit Selling general and administrative exp Asset impairment and exit costs... Gains on coffee business transac 11.512 7.577 692 273 16.822) 217 3,242 3.971 1.579 1.013 7.884 2.554 2392 593 7.291 2.201 Loss on decanolidation of Venezuela Amortization of intangibles... Operating income... Interest and other expense, net Earnings from continuing operations before income taxes... Provision for income taxes.. Earnings from continuing operations.. Earnings from discontinued operations net of income taxes ... Net earnings. Noncontrolling interest..... Net earnings attributable to Mondelez International... 2332 1.803 3,935 2,201 20 $ 7.267 $ 2,184 $ 3,915 2015 2014 $ 1,870 $ 1.631 MONDELEZ INTERNATIONAL INC. Consolidated Balance Sheets As of December 31 fin millions, expect share data) Assets Cash and cash equivalents ....... Trade receivables (net of allowances of $54 at 2015 and 566 at 2014).. Other receivables (net of allowances of $109 at 2015 and $91 at 2014) ........ Inventories, net.................... Deferred income taxes......... Other current assets.............. 2,634 3,802 1,212 2,609 Total current assets ......... Property, plant and equipment, net ..... Goodwill Intangible assets, net Prepaid pension assets ........ Equity method investments ..... Other assets.... Total Assets..... 633 8,958 8,362 20,664 18,768 69 5,387 635 $62,843 949 3,480 480 1,408 11,750 9,827 23,389 20,335 53 662 $66,771 continued Module 3 Port Avand interpretation December 31 in millions, expect share data 3-60 2015 2014 $ 236 605 1.634 844 2,713 10.922 14.557 4,750 $ 1.305 1,530 5.299 2.047 946 2,880 14.007 13.821 5,512 2.912 526 2,140 $38.918 2.183 Liabilities.. . Short-term borrowings....... Current portion of long-term debt... Accounts payable.. Accrued marketing.... Accrued employment costs.. Other current liabilities Total current liabilities...... Long-term debt. Deferred income taxes........ Accrued pension costs. Accrued postretirement health care coste Other liabilities... Total abilities...... Equity Common stock, no par value (1,996.537.778 shares issued at 2015 and 2014). Additional paid-in capital ....... Retained earnings ........ Accumulated other comprehensive losses ... Treasury stock, at cost...... Total Mondelz International shareholders' equity... Noncontrolling interest 499 1,832 $34,743 31,760 20.700 19.9860 (14,462) 28.012 31,651 14.529 (7,318) (11,112) 27.750 103 Total equity .......... Total liabilties and equity...... 28.100 27.853 $66,771 $62,843 Required a. Compute net operating profit after tax (NOPAT) for 2015. Assume that the combined federal and state statutory tax rate is 37%. b. Compute net operating assets (NOA) for 2015 and 2014. c. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2015: confirm that RNOA = NOPM X NOAT. The median NOPM and NOAT for companies in the packaged food industry is 5% and 2.1, with a median RNOA of 10.5%. Comment on NOPM and NOAT estimates for Mondelez in comparison to industry medians. d. Compute net nonoperating obligations (NNO) for 2015 and 2014. Confirm the relation: NOANNO + Total equity. e. Compute return on equity (ROE) for 2015. 1. Infer the nonoperating return component of ROE for 2015. g. Comment on the difference between ROE and RNOA. What does this relation suggest about Monde- lez's use of debt? P3-57. Direct Computation of Nonoperating Return Refer to the financial information of Mondelez International Inc. in P3-56 to answer the following requirements. Required a. Assume that 2015 net nonoperating expenses (NNE) are $638 million and that NOA is $41.628 mil- lion and $42.878 million in 2015 and 2014, respectively. Compute financial leverage (FLEV) and Spread for 2015. " Compute the 2015 return on equity. The NCI ratio for 2015 is 0.999. Confirm computations to yield the relation: ROE = TRNOA + (FLEV X Spread)] X NCI ratio. c. What do your computations of the nonoperating return in parts a and b imply about the company's use of borrowed funds? LOS MONDE INTERNAT INC