Following is selected financial information from General Mills, Inc., for its fiscal year ended May 25, 2003 ($ millions):

Revenue	$ 10,506
Cash from operating activities	1,631
Cash, beginning year	975
Stockholders' equity	4,475
Noncash assets	17,524
Cash from financing activities	(885)
Cost of goods sold	6,109
Total expenses (other than cost of goods sold)	3,480
Cash, ending year	703
Total liabilities	13,752
Cash from investing activities	(1,018)

(a) Prepare the income statement, the balance sheet, and the statement of cash flows for General Mills for the fiscal year ended May 2003.

Hint: Enter negative numbers only for answers in the statement of cash flows (if applicable).

General Mills, Inc. Income Statement ($ millions) For Year Ended May 25, 2003
Revenue	Answer
AnswerCash, ending yearTotal expensesCost of goods soldNoncash assets	Answer
Gross profit	Answer
AnswerCash, ending yearTotal expensesCost of goods soldNoncash assets	Answer
Net income	Answer

General Mills, Inc.

Balance Sheet ($ millions)

May 25, 2003

Assets

Liabilities

Cash	Answer
AnswerCash, beginning yearNoncash assetsStockholders' equityNet income	Answer
Total assets	Answer

Total liabilities	Answer
AnswerCash, beginning yearNoncash assetsStockholders' equityNet income	Answer
Total liabilities and equity	Answer

General Mills, Inc. Statement of Cash Flows ($ millions) For Year Ended May 25, 2003
Cash from operating activities	Answer
AnswerNoncash assetsNet incomeCash, beginning yearCash from investing activities	Answer
Cash from financing activities	Answer
Net change in cash	Answer
AnswerNoncash assetsNet incomeCash, beginning yearCash from investing activities	Answer
Cash, ending year	Answer

(b) Does the negative amount for cash from financing activities concern us? Explain.

A negative amount for cash from financing activities implies that the company is unable to pay its debts as they come due and should be interpreted negatively.

A negative amount for cash from financing activities is the result of additional borrowings. Because the additional funds are invested in earnings-generating assets, this should be viewed positively.

A negative amount for cash from financing activities implies that the market value of the company's long-term debt has declined and this change should be viewed negatively.

A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the companys ability to retire debt obligations.

(c) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity):

Round answers to two decimal places (example for percentage answers: 0.12345 = 12.35%).

(i) Profit margin Answer% (ii) Asset turnover Answer (iii) Return on assets Answer% (iv) Return on equity Answer%