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Campbell Soup Company (CPB) is a U.S. manufacturer and marketer of high-quality, branded food and beverage products. In 2018, CPB announced its vision to be
Campbell Soup Company (CPB) is a U.S. manufacturer and marketer of high-quality, branded food and beverage products. In 2018, CPB announced its vision to be a leading snacks and simple meals company, with a portfolio of best-in-class products and brands, and to pursue increased, multi-year cost savings initiatives. CPB provides selected financial data for fiscal year 2019: 377 From the Income Statement (In million dollars) FY 2018 FY 2019 Net sales $ 7,890 $ 8,700 Costs and expenses Cost of goods sold 4,734 5,394 Sales and marketing 902 Administrative expenses 654 R&D expenses 111 110 Other general expenses 457 422 Total cost and expenses 6,707 7,482 Operating income $ 1,184 $ 1.218 From the 2019 Balance Sheet (In million dollars) Beginning Ending Cash $ 319 $ 226 Accounts receivable, net 605 783 Raw materials inventory 244 Finished goods inventory 525 Other current assets 74 Plant assets, net of depreciation 2,454 3,233 Intangible assets, net of amortization 3,233 8,776 Other assets 139 224 Total assets $ 7,726 $14,161 855 550 589 86 5. (10 points) Use the following division-level data to complete the table right below in the format as indicated by X's). Assume a cost of capital (WACC) of 15%, R&D has a depreciable life of 5 years, and there are no material current liabilities. Ignore taxes. Show your work and use cell-referencing for full credit. Americas $ 4,160 Global $ 3,552 Fresh $ 988 (In million dollars) Net sales Costs and expenses Cost of goods sold R&D expenses Total cost and expenses Divisional income Divisional investment $ $ $ $ $ 2,436 $ 60 $ 2,496 $ 1,664 $ 7,086 $ 2,674 $ 45 $ 2,719 $ 833 $ 5,920 $ 284 5 289 699 1.398 a. Profit margin ratio for Americas (XX%) b. Asset turnover for Global (X.XX) c. ROI for Fresh (XX%) d. RI for Global ($XX.XX million) e. EVA for Americas ($XX.XX million)
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