Following are the income statements and balance sheets of General Mills, Inc. May 29, 2011 May 30, 2010 $ 14,880.2 $ 14,635.6 8,926.7 8,835.4 3,192.0 3,162.7 (17.4) 4.4 31.4 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 income Interest, net Earnings before income tax expense and equity in income of affiliates Income tax expense After-tax earnings from joint ventures Net earnings including noncontrolling interests Net earnings attributable to noncontrolling interests Net earnings attributable to General Mills 2,774.5 346.3 2,428.2 721.1 96.4 1,803.5 5.2 $ 1,798.3 2,606.1 401.6 2,204.5 771.2 101.7 1,535.0 4.5 $1,530.5 May 29, 2011 May 30, 2010 Balance Sheet ($ millions) Assets Cash and cash equivalents Receivables Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Land, buildings and equipment $ 673.2 1,041.6 1,344.0 $ 619.6 1,162.3 1,609.3 27.3 483.5 3,902.0 3,345.9 42.7 378.5 3,480.0 3,127.7 3,345.9 6,750.8 3,813.3 862.5 $ 18,674.5 3,127.7 6,592.8 3,715.0 763.4 $ 17,678.9 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 Long-term debt Deferred income taxes Other liabilities Total liabilities 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 109.8 and 98.1 Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total Liabilities and Equity $ 995.1 1,031.3 311.3 1,321.5 3,659.2 5,542.5 1,127.4 1,733.2 12,062.3 $ 849.5 107.3 1,050.1 1,762.2 3,769.1 5,268.5 874.6 2,118.7 12,030.9 75.5 1,319.8 9,191.3 (3,210.3) (1,010.8) 6,365.5 246.7 6,612.2 $ 18,674.5 75.5 1,307.1 8,122.4 (2,615.2) (1,486.9) 5,402.9 245.1 5,648.0 $ 17,678.9 Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed). Net sales growth 5.0% Cost of sales/Net sales 60.0% Selling, general and administrative expenses/Net sales 21.5% Divestitures (gain), net Restructuring, impairment, and other exit costs Interest, net $346.3 Income tax expense/Pretax income 29.7% After-tax earnings from joint ventures $96.4 Net earnings attributable to noncontrolling interests/Net earnings before attribution 0.3% Round answers to one decimal place. Do not use negative signs with your answers. $ Income Statement, Fiscal Years Ended ($ millions) Net sales Cost of goods sold Selling, general and administrative expenses Divestitures (gain), net Restructuring, impairment, and other exit costs Operating income Interest expense Earnings before income tax expense and equity in income of affiliates Income tax expense Equity in income of affiliates Net earnings including noncontrolling interests Net earnings attributable to noncontrolling interests 2012 Estimated 15,624.2 9,374.5 3,359.2 0 0 2,890.5 346.3 2,516.7 x 755.6 96.4 1,885 5.7 Net earnings attributable to General Mills $ 1,879.3 Forecast General Mill's fiscal 2012 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. ($ millions). Receivables/Net sales Inventories/Net sales Deferred income tax/Net sales Prepaid expenses and other current assets/Net sales Other intangible assets Other Assets/Net sales Accounts payable/Net sales Other current liabilities/Net sales Current portion of long-term debt Deferred income taxes/Net sales Other liabilities/Net sales Noncontrolling interests Capital expenditures/Net sales Depreciation/Prior year net PPE Dividends/Net income Current maturities of long-term debt in fiscal 2013 *increase by net income attributable to noncontrolling interests and assume no dividends 7.8% 10.8% 0.2% 3.2% $0 amortization 5.8% 6.7% 8.9% $733.6 7.6% 11.6% 4.4% 20.7% 40.6% $733.6 2012 Estimated $ 619.6 x 1,218.7 1,687.4 31.2 500 40,567 x 3,345.9 X 6,750.8 0x Ox 0x > Balance Sheet ($ 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 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 Stockholders equity Common stock Additional paid-in capital Retained earnings X ox Ox 0 x 0 x X 0x 0 x 0 0 x X X X X X Retained earnings Common stock in treasury Accumulated other comprehensiveloss Total shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 0 0 x Ox 0 x 0x OX 0 x Following are the income statements and balance sheets of General Mills, Inc. May 29, 2011 May 30, 2010 $ 14,880.2 $ 14,635.6 8,926.7 8,835.4 3,192.0 3,162.7 (17.4) 4.4 31.4 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 income Interest, net Earnings before income tax expense and equity in income of affiliates Income tax expense After-tax earnings from joint ventures Net earnings including noncontrolling interests Net earnings attributable to noncontrolling interests Net earnings attributable to General Mills 2,774.5 346.3 2,428.2 721.1 96.4 1,803.5 5.2 $ 1,798.3 2,606.1 401.6 2,204.5 771.2 101.7 1,535.0 4.5 $1,530.5 May 29, 2011 May 30, 2010 Balance Sheet ($ millions) Assets Cash and cash equivalents Receivables Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Land, buildings and equipment $ 673.2 1,041.6 1,344.0 $ 619.6 1,162.3 1,609.3 27.3 483.5 3,902.0 3,345.9 42.7 378.5 3,480.0 3,127.7 3,345.9 6,750.8 3,813.3 862.5 $ 18,674.5 3,127.7 6,592.8 3,715.0 763.4 $ 17,678.9 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 Long-term debt Deferred income taxes Other liabilities Total liabilities 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 109.8 and 98.1 Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total Liabilities and Equity $ 995.1 1,031.3 311.3 1,321.5 3,659.2 5,542.5 1,127.4 1,733.2 12,062.3 $ 849.5 107.3 1,050.1 1,762.2 3,769.1 5,268.5 874.6 2,118.7 12,030.9 75.5 1,319.8 9,191.3 (3,210.3) (1,010.8) 6,365.5 246.7 6,612.2 $ 18,674.5 75.5 1,307.1 8,122.4 (2,615.2) (1,486.9) 5,402.9 245.1 5,648.0 $ 17,678.9 Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed). Net sales growth 5.0% Cost of sales/Net sales 60.0% Selling, general and administrative expenses/Net sales 21.5% Divestitures (gain), net Restructuring, impairment, and other exit costs Interest, net $346.3 Income tax expense/Pretax income 29.7% After-tax earnings from joint ventures $96.4 Net earnings attributable to noncontrolling interests/Net earnings before attribution 0.3% Round answers to one decimal place. Do not use negative signs with your answers. $ Income Statement, Fiscal Years Ended ($ millions) Net sales Cost of goods sold Selling, general and administrative expenses Divestitures (gain), net Restructuring, impairment, and other exit costs Operating income Interest expense Earnings before income tax expense and equity in income of affiliates Income tax expense Equity in income of affiliates Net earnings including noncontrolling interests Net earnings attributable to noncontrolling interests 2012 Estimated 15,624.2 9,374.5 3,359.2 0 0 2,890.5 346.3 2,516.7 x 755.6 96.4 1,885 5.7 Net earnings attributable to General Mills $ 1,879.3 Forecast General Mill's fiscal 2012 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. ($ millions). Receivables/Net sales Inventories/Net sales Deferred income tax/Net sales Prepaid expenses and other current assets/Net sales Other intangible assets Other Assets/Net sales Accounts payable/Net sales Other current liabilities/Net sales Current portion of long-term debt Deferred income taxes/Net sales Other liabilities/Net sales Noncontrolling interests Capital expenditures/Net sales Depreciation/Prior year net PPE Dividends/Net income Current maturities of long-term debt in fiscal 2013 *increase by net income attributable to noncontrolling interests and assume no dividends 7.8% 10.8% 0.2% 3.2% $0 amortization 5.8% 6.7% 8.9% $733.6 7.6% 11.6% 4.4% 20.7% 40.6% $733.6 2012 Estimated $ 619.6 x 1,218.7 1,687.4 31.2 500 40,567 x 3,345.9 X 6,750.8 0x Ox 0x > Balance Sheet ($ 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 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 Stockholders equity Common stock Additional paid-in capital Retained earnings X ox Ox 0 x 0 x X 0x 0 x 0 0 x X X X X X Retained earnings Common stock in treasury Accumulated other comprehensiveloss Total shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 0 0 x Ox 0 x 0x OX 0 x