Case 3-2
Refer to the annual report of Campbell Soup Company in Appendix A.Required:
a. Identify Campbell Soup's major categories of liabilities. Identify which of these liabilities require recognition of interest expens
b. Reconcile activity in the long-term borrowing account for Year 11.
c. Describe the composition of Campbell Soup's long-term liabilities account using its note 19.
CASE 3-3
Analyzing and Interpreting Equity
Refer to the annual report of Campbell Soup Company in Appendix A.
CASE 3-2 Analyzing and Interpreting Liabilities Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Identify Campbell Soup's major categories of liabilities. Identify which of these liabilities require recognition of interest expense. b. Reconcile activity in the long-term borrowing account for Year 11. c. Describe the composition of Campbell Soup's long-term liabilities account using its note 19. CASE 3-3 Analyzing and Interpreting Equity Page 220 Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Determine the book value per share of Campbell Soup's common stock for Year 11. b. Identify the par value of Campbell Soup's common shares. Determine the number of common shares authorized, issued, and outstanding at the end of Year 11 . c. Determine how many common shares Campbell Soup repurchased as treasury stock for Year 11. Determine the price at which Campbell Soup repurchased the shares. Campbelsoup Supplemental Schedule of Sales and Earnines CONSOLDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OV CASN VLOWS Total liabilities and shareowners' equity NSOLDDATED STATLMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF SMAREOWNERS' EOUITY Page A5. 1. Summary of Significant Accounting Policies Considation. The consolidated financial statements include the accounts of the Company and its majority-owned Page A56 subsidiaries. Significant intercompany transactions are eliminated in consolidation. Investments in affiliated owned 20% or more are accounted for by the equity method. Transfers between geographic areas are recorded at cost plus markup or at market. Identifiable assets are all assets identified with operations in each geographic area. 3. Interest Expense 101 (4) Foreign Currency Translation Fluctuations in foreign exchange rates resulted in decreases in net earnings of $.3 in Year 11,$3.2 in Year 10 and $19.1 Page A57 in Year 9. The balances in the Cumulative translation adjustments account are the following: g Year 10 the Company made several small acquisitions at a cost of $43.1 which was allocated as follows: ng Year 9, the Company made several acquisitions at a cost of $137.9, including a soup and pickle manufacturing business in ida. The cost of the acquisitions was allocated as follows: uarial assumptions used in the United States were: ed status of the plans was as follows: lowing is a reconciliation of effective income tax rates with the statutory Federal income tax rate: nt expense was $59.7 in Year 11,$62.4 in Year 10 and $60.2 in Year 9 and generally relates to leases of machinery and equipme ure minimum lease payments under operating leases are $71.9. (11) Supplementary Statements of Earnings Information Q2) Cash and Cash Equivalents ash and Cash Equivalents includes cash equivalents of $140.7 at July 28 , Year 11, and $44.1 at July 29 , Year 10. (13) Accounts Receivable (19) Inventories Liquidation of LIFO inventory quantities had no significant effect on net earnings in Year 11, Year 10, or Year 9. Inventories for which the LIFO method of determining cost is used represented approximately 70% of consolidated inventories in Year 11 and 64% in Year 10. (1) Prepaid Expenses ciation provided in costs and expenses was $194.5 in Year 11,$184.1 in Year 10 and $175.9 in Year 9. Approximately $158.2 of expenditures is required to complete projects in progress at July 28 , Year 11. 9. Year 10, \$150 of outstanding commercial paper and $100.3 of currently maturing notes were reclassified to long-term debt refinanced in Year 11. ation on notes payable follows: unt of unused lines of credit at July 28, Year 11 approximates $635. The lines of credit are unconditional and generally a period of a year at prime commercial interest rates. term debt consists of the following: Page A62 *.350 milermabie in Year 18 ditcome of 5403 . Other Liabilities Shareowners' Equity ompany has authorized 140 million shares of Capital Stock of $.15 par value and 40 million shares of Preferred Page A6 ssuable in one or more classes, with or without par as may be authorized by the Board of Directors. No Preferred Stock has b following summarizes the activity in option shares under the Company's employee stock option plans: Quarterly Data (unaudited) Fleven Year Review-Censelid (mithomi except por thate amounti) Fiscal Year Summery of Operatien Net sales Eamings before taxes Earnings before cumulative effect of accoun Net earnings Percent of sales Retum on average shareowners' equity \begin{tabular}{|rrr|} \hline Year 11 & Year 10(4) & Year 9(b) \\ & & \\ 56,204.1 & 56,205.8 & 55,672.1 \\ 667.4 & 179.4 & 106.5 \\ 401.5 & 4.4 & 13.1 \\ 401.5 & 4.4 & 131 \\ 6.3% & 1% & 2% \\ 23.0% & 3% & .7% \end{tabular} Vineneial Pevitien Workiag capital Plant assets-net Total assets Long-term debt Shareowners' equity $240.31,790.44,149.0772.61,793.45367.41,717.74,115.6805.81,691.85369.41,540.63,932.1629.21,778.3 Por shere bete Earnings belore cumtul Net earnings Dividends declared Shareowners' cquity Other stetieties Salaries, wages, penstons, eic Capital expenditures Number of shareowriers (in thousands) Weighted average shares outstanding CAMPBELL SOUP COMPANY AND CONSOLIDATED SUBSIDIARIES Property, Plant, and Equipment at Cost [157 Form 10-K CAMPBELL SOUP COMPANY AND CONSOLIDATED SUBSIDIARIES Accumulated Depreciation and Amortization of Property, Plant and Equipment CASE 3-2 Analyzing and Interpreting Liabilities Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Identify Campbell Soup's major categories of liabilities. Identify which of these liabilities require recognition of interest expense. b. Reconcile activity in the long-term borrowing account for Year 11. c. Describe the composition of Campbell Soup's long-term liabilities account using its note 19. CASE 3-3 Analyzing and Interpreting Equity Page 220 Refer to the annual report of Campbell Soup Company in Appendix A. Campbell Soup Required: a. Determine the book value per share of Campbell Soup's common stock for Year 11. b. Identify the par value of Campbell Soup's common shares. Determine the number of common shares authorized, issued, and outstanding at the end of Year 11 . c. Determine how many common shares Campbell Soup repurchased as treasury stock for Year 11. Determine the price at which Campbell Soup repurchased the shares. Campbelsoup Supplemental Schedule of Sales and Earnines CONSOLDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OV CASN VLOWS Total liabilities and shareowners' equity NSOLDDATED STATLMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF SMAREOWNERS' EOUITY Page A5. 1. Summary of Significant Accounting Policies Considation. The consolidated financial statements include the accounts of the Company and its majority-owned Page A56 subsidiaries. Significant intercompany transactions are eliminated in consolidation. Investments in affiliated owned 20% or more are accounted for by the equity method. Transfers between geographic areas are recorded at cost plus markup or at market. Identifiable assets are all assets identified with operations in each geographic area. 3. Interest Expense 101 (4) Foreign Currency Translation Fluctuations in foreign exchange rates resulted in decreases in net earnings of $.3 in Year 11,$3.2 in Year 10 and $19.1 Page A57 in Year 9. The balances in the Cumulative translation adjustments account are the following: g Year 10 the Company made several small acquisitions at a cost of $43.1 which was allocated as follows: ng Year 9, the Company made several acquisitions at a cost of $137.9, including a soup and pickle manufacturing business in ida. The cost of the acquisitions was allocated as follows: uarial assumptions used in the United States were: ed status of the plans was as follows: lowing is a reconciliation of effective income tax rates with the statutory Federal income tax rate: nt expense was $59.7 in Year 11,$62.4 in Year 10 and $60.2 in Year 9 and generally relates to leases of machinery and equipme ure minimum lease payments under operating leases are $71.9. (11) Supplementary Statements of Earnings Information Q2) Cash and Cash Equivalents ash and Cash Equivalents includes cash equivalents of $140.7 at July 28 , Year 11, and $44.1 at July 29 , Year 10. (13) Accounts Receivable (19) Inventories Liquidation of LIFO inventory quantities had no significant effect on net earnings in Year 11, Year 10, or Year 9. Inventories for which the LIFO method of determining cost is used represented approximately 70% of consolidated inventories in Year 11 and 64% in Year 10. (1) Prepaid Expenses ciation provided in costs and expenses was $194.5 in Year 11,$184.1 in Year 10 and $175.9 in Year 9. Approximately $158.2 of expenditures is required to complete projects in progress at July 28 , Year 11. 9. Year 10, \$150 of outstanding commercial paper and $100.3 of currently maturing notes were reclassified to long-term debt refinanced in Year 11. ation on notes payable follows: unt of unused lines of credit at July 28, Year 11 approximates $635. The lines of credit are unconditional and generally a period of a year at prime commercial interest rates. term debt consists of the following: Page A62 *.350 milermabie in Year 18 ditcome of 5403 . Other Liabilities Shareowners' Equity ompany has authorized 140 million shares of Capital Stock of $.15 par value and 40 million shares of Preferred Page A6 ssuable in one or more classes, with or without par as may be authorized by the Board of Directors. No Preferred Stock has b following summarizes the activity in option shares under the Company's employee stock option plans: Quarterly Data (unaudited) Fleven Year Review-Censelid (mithomi except por thate amounti) Fiscal Year Summery of Operatien Net sales Eamings before taxes Earnings before cumulative effect of accoun Net earnings Percent of sales Retum on average shareowners' equity \begin{tabular}{|rrr|} \hline Year 11 & Year 10(4) & Year 9(b) \\ & & \\ 56,204.1 & 56,205.8 & 55,672.1 \\ 667.4 & 179.4 & 106.5 \\ 401.5 & 4.4 & 13.1 \\ 401.5 & 4.4 & 131 \\ 6.3% & 1% & 2% \\ 23.0% & 3% & .7% \end{tabular} Vineneial Pevitien Workiag capital Plant assets-net Total assets Long-term debt Shareowners' equity $240.31,790.44,149.0772.61,793.45367.41,717.74,115.6805.81,691.85369.41,540.63,932.1629.21,778.3 Por shere bete Earnings belore cumtul Net earnings Dividends declared Shareowners' cquity Other stetieties Salaries, wages, penstons, eic Capital expenditures Number of shareowriers (in thousands) Weighted average shares outstanding CAMPBELL SOUP COMPANY AND CONSOLIDATED SUBSIDIARIES Property, Plant, and Equipment at Cost [157 Form 10-K CAMPBELL SOUP COMPANY AND CONSOLIDATED SUBSIDIARIES Accumulated Depreciation and Amortization of Property, Plant and Equipment
