For this question you must use the excerpts from the financial Statements of Campbell Soup Company, found in Appendix 2.

1. Look at Campbells Balance Sheet. Are you able to determine the specific kinds of depreciable assets Campbells owns? Why or why not?
2. Does Campbells have any intangible assets? If so, how are these assets listed?
3. What is goodwill? Behind Campbells financial statements you will see a few pages of information. This information is known as the notes to the financial statements. The pages in your file only represent a small portion of the total notes to Campbells statements. The notes to these financial statements contain important information that is not, or cannot, be disclosed on the financial statements themselves.
4. Look on the first page of Campbells notes, in the property, plant and equipment section. Now are you able to determine the specific kinds of depreciable assets Campbells owns? What are these assets?
5. What depreciation method does Campbells use? How long do Campbells depreciable assets last?
6. Look on the second page of Campbells notes. How does Campbells treat advertising and research and development costs? Is this an appropriate treatment under GAAP?

CAMPBELL SOUP COMPANY Consolidated Statements of Earnings (millions, except per share amounts) (9) 2018 2017 2016 Net sales............................ ........... S 8,685 $ 7,890 $ 7,961 Costs and expenses Cost of products sold........... 5,869 4,965 5,033 Marketing and selling expenses..... 902 855 852 Administrative expenses .. 654 550 575 Research and development expenses.... 110 111 105 Other expenses/ (income). 619 405 Restructuring charges................ 62 18 Total costs and expenses.......... 8,216 6,490 7,001 Earnings before interest and taxes .... 469 1,400 960 Interest expense ....... 201 112 Interest income...................................... Earnings before taxes.................. . 272 1,293 Taxes on earnings........ 406 286 Net earnings ........................................................... 887563 Less: Net earnings (loss) attributable to noncontrolling interests ... Net earnings attributable to Campbell Soup Company .......... .........$ 261 $ 887 $ 563 Per Share Basic Net earnings attributable to Campbell Soup Company .........................S .87 $ 2.91 $ 1.82 Weighted average shares outstanding - basic ...... ........ 301 305 309 Per Share - Assuming Dilution Net earnings attributable to Campbell Soup Company.... ....S .86 $ 2.89 $ 1.81 Weighted average shares outstanding - assuming dilution .... ........ 302 307 311 849 See accompanying Notes to Consolidated Financial Statements. CAMPBELL SOUP COMPANY Consolidated Balance Sheets (millions, except per share amounts) Jul 29 Juh S 226 785 1,199 319 605 902 2.296 3.233 1,900 2.454 2.115 1,118 139 ,726 4,196 224 14.529 7 S 1,037 666 561 Current assets Cash and cash equivalents ........ Accounts receivable, net Inventories .... Other current assets. Total current assets...... .ELER Plant assets, net of depreciation... Goodwill...... Other intangible assets, net of amortization ..... Other assets ($77 as of 2018 and $51 as of 2017 attributable to variable interest entity)....... Total assets. ....$ Current liabilities Short-term borrowings. Payable to suppliers and others....... Accrued liabilities Dividends payable ..... Accrued income taxes. Total current liabilities................ . .. ................ ...................... . . . Long-term debt. Deferred taxes..... Other liabilities............ Total liabilities................................................................ Commitments and contingencies Campbell Soup Company shareholders' equity Preferred stock, authorized 40 shares, none issued... Capital stock, S.0375 par value; authorized 560 shares, issued 323 shares...... Additional paid-in capital............... Earnings retained in the business........... Capital stock in treasury, at cost. Accumulated other comprehensive loss................ E E EEEEEEEE Total Campbell Soup Company shareholders' equity............. .. ...... Noncontrolling interests ......................................................... Total equity .. ... . .................................... Total liabilities and equity ......................................................$ 1,896 893 676 107 22 3.594 7,998 995 569 13.156 20 2.395 2.499 490 697 .081 6 359 2,385 (1,066) 349 2.224 (1.103) (118) 1,364 9 1.373 14,529 1 .637 8 1 .645 .726 7 See accompanying Notes to Consolidated Financial Statements. CAMPBELL SOUP COMPANY Consolidated Statements of Cash Flows (millions) 2018 261 $ 887 (60) (58) (60) 1,305 (407) (338) 341) Cash flows from operating activities: Net earnings..... Adjustments to reconcile net earings to operating cash flow Impairment charges ..... Restructuring charges Stock-based compensation.... Amortization of inventory fair value adjustment from acquisition ... Pension and postretirement benefit expense (income).... Depreciation and amortization .. Deferred income taxes........ Othernet Changes in working capital, net of acquisitions Accounts receivable Inventories Prepaid assets...... Accounts payable and accrued liabilities Net receipts from hedging activities........ Other Net cash provided by operating activities... Cash flows from investing activities: Purchases of plant assets. Sales of plant assets.. Purchases of route businesses.... Sales of route businesses....... Businesses acquired, net of cash acquired... Othernet Net cash used in investing activities. --------------.-.-.-.-.-.-.-.-.-.-.- .-. Cash flows from financing activities: Short-term borrowings.. . Short-term repayments. Long-term borrowings.... Long-term repayments.... Repayments of notes payable...... . Dividends paid Treasury stock purchases........ Treasury stock issuances..... Payments related to tax withholding for stock-based compensation Repurchase of noncontrolling interest.... Payments of debe issuance costs ..... Net cash provided by (used in) financing activities ................ . Effect of exchange rate changes on cash.......... Net change in cash and cash equivalents .... Cash and cash equivalents beginning of period...... Cash and cash equivalentsend of period ..-.-.-.-.-.-.--.-.-.-.-.-.-.-.-.-.-.-$ 10 (6,772) (20) (7.197) 30) (18) (354) (368) 10,222 8,161 (8.923) 215 8,247 (8,002) 211 (90) (400) (420) (437) 5.807 (911) 119 296 3 19 226 S S 296 See accompanying Notes to Consolidated Financial Statements. Notes to Consolidated Financial Statements (currency in millions, except per share amounts) 1. Summary of Significant Accounting Policies In this Report, unless otherwise stated, the terms "we," "us," "our" and the company refer to Campbell Soup Company and its consolidated subsidiaries. We are a manufacturer and marketer of high-quality, branded food and beverage products. Basis of Presentation - The consolidated financial statements include our accounts and entities in which we maintain a controlling financial interest and a variable interest entity (VIE) for which we are the primary beneficiary. Intercompany transactions are eliminated in consolidation. Certain amounts in prior-year financial statements were reclassified to conform to the current- year presentation. See Note 2 for additional information. Our fiscal year ends on the Sunday nearest July 31. There were 52 weeks in 2018, 2017, and 2016. Use of Estimates - Generally accepted accounting principles require management to make estimates and assumptions that affect assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Revenue Recognition - Revenues are recognized when the carnings process is complete. This occurs when products are shipped in accordance with terms of agreements, title and risk of loss transfer to customers, collection is probable and pricing is fixed or determinable. Revenues are recognized net of provisions for returns, discounts and allowances. Certain sales promotion expenses, such as feature price discounts, in-store display incentives, cooperative advertising programs, new product introduction fees and coupon redemption costs, are classified as a reduction of sales. The recognition of costs for promotion programs involves the use of judgment related to performance and redemption estimates. Estimates are made based on historical experience and other factors. Costs are recognized either upon sale or when the incentive is offered, based on the program. Revenues are presented on a net basis for arrangements under which suppliers perform certain additional services. In 2019, we will adopt revised accounting guidance on the recognition of revenue. See Note 2 for additional information Cash and Cash Equivalents - All highly liquid debt instruments purchased with a maturity of three months or less are classified as cash equivalents. Inventories - All inventories are valued at the lower of average cost or net realizable value. Property. Plant and Equipment - Property, plant and equipment are recorded at historical cost and are depreciated over estimated useful lives using the straight-line method. Buildings and machinery and equipment are depreciated over periods not exceeding 45 years and 20 years, respectively. Assets are evaluated for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include significant adverse changes in business climate or a plan of disposal. Repairs and maintenance are charged to expense as incurred. Goodwill and Intangible Assets - Goodwill and intangible assets deemed to have indefinite lives are not amortized but rather are tested at least annually for impairment, or when circumstances indicate that the carrying amount of the asset may not be recoverable. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment or a component of an operating segment. Goodwill is tested for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We may elect not to perform the qualitative assessment for some or all reporting units and perform a quantitative impairment test. Fair value is determined based on discounted cash flow analyses. The discounted estimates of future cash flows include significant management assumptions such as revenue growth rates, operating margins, weighted average cost of capital, and future economic and market conditions. If the carrying value of the reporting unit exceeds fair value, goodwill is considered impaired. In January 2017, the Financial Accounting Standards Board (FASB) issued revised guidance that simplifies the test for goodwill impairment, effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Under the revised guidance, if a reporting unit's carrying value exceeds its fair value, an impairment charge will be recorded to reduce the reporting unit to fair value. Prior to the revised guidance, the amount of the impairment was the difference between the carrying value of the goodwill and the "implied" fair value, which was calculated as if the reporting unit had just been acquired and accounted for as a business combination. Indefinite-lived intangible assets are tested for impairment by comparing the fair value of the asset to the carrying value. Fair value is determined based on discounted cash flow analyses that include significant management assumptions such as revenue growth rates, weighted average cost of capital, and assumed royalty rates. If the carrying value exceeds fair value, an impairment charge will be recorded to reduce the asset to fair value