Formulating Financial Statements from Raw Data and Calculating Ratios Following is selected financial information from JM Smucker Co. for the year ended April 30, 2018 ($ millions). Current assets, end of year $1,710.5 Long-term liabilities, end of year $7,013.9 Cash, end of year 211.9 Stockholders' equity, end of year 8,680.2 Cash from investing activities (305.4) Cash from operating activities 1,339.8 Cost of products sold 4.973.1 Total assets, beginning of year 17,203.7 Total liabilities, end of year 8,151.1 Revenue 8,092.8 Cash from financing activities* (1,006.1) Total expenses, other than cost of 1,647.3 Stockholders' equity, beginning of year 7,535.2 product sold Dividends paid 3853 Cash from financing activities includes the effects of foreign exchange rate fluctuations. a. Prepare the income statement for the year ended April 30, 2018. Note: Do not use negative signs with any of your answers. JM Smucker Co Income Statement ($ millions) For the year ended April 30, 2018 Revenues $ 8,092.8 Cost of product sold 4,973.1 Gross profit 3,119.7 Expenses 1,6473 Net income $ 1.472.4 b. Prepare the balance sheet as of April 30, 2018. JM Smucker Co Balance Sheet (5 millions) April 30, 2018 Current assets $ 211.9 Current liabilities $ Long-term assets 16,619.4 Long-term liabilities Total liabilities Stockholders' equity Total assets $ 16,831.3 Total liabilities and equity $ 0 0 8,151.1 8,680.2 16,831.3 C. Prepare the statement of cash flows for the year ended April 30, 2018. Note: Use a negative sign with your answer to indicate cash was used by activities and/or a decrease in cash, JM Smucker Co Statement of Cash Flow ($ millions) For the year ended April 30, 2018 Cash from operating activities $ 1,339.8 Cash from investing activities (305.4) Cash from financing activities (1,006.1) Net increase (decrease) in cash ( 28.3 Cash, beginning of year 183.6 Cash, end of year $ 211.9 d. Compute ROA e. Compute profit margin (PM). f. Compute asset turnover (AT). g. Compute ROE. Notes: Round ROA, PM, and ROE to one decimal place (ex: 10.5%). Round AT (asset turnover) to two decimal places (0.33). ROA 8.65% PM 0 % AT ROE 0 0% Formulating Financial Statements from Raw Data and Calculating Ratios Following is selected financial information from JM Smucker Co. for the year ended April 30, 2018 ($ millions). Current assets, end of year $1,710.5 Long-term liabilities, end of year $7,013.9 Cash, end of year 211.9 Stockholders' equity, end of year 8,680.2 Cash from investing activities (305.4) Cash from operating activities 1,339.8 Cost of products sold 4.973.1 Total assets, beginning of year 17,203.7 Total liabilities, end of year 8,151.1 Revenue 8,092.8 Cash from financing activities* (1,006.1) Total expenses, other than cost of 1,647.3 Stockholders' equity, beginning of year 7,535.2 product sold Dividends paid 3853 Cash from financing activities includes the effects of foreign exchange rate fluctuations. a. Prepare the income statement for the year ended April 30, 2018. Note: Do not use negative signs with any of your answers. JM Smucker Co Income Statement ($ millions) For the year ended April 30, 2018 Revenues $ 8,092.8 Cost of product sold 4,973.1 Gross profit 3,119.7 Expenses 1,6473 Net income $ 1.472.4 b. Prepare the balance sheet as of April 30, 2018. JM Smucker Co Balance Sheet (5 millions) April 30, 2018 Current assets $ 211.9 Current liabilities $ Long-term assets 16,619.4 Long-term liabilities Total liabilities Stockholders' equity Total assets $ 16,831.3 Total liabilities and equity $ 0 0 8,151.1 8,680.2 16,831.3 C. Prepare the statement of cash flows for the year ended April 30, 2018. Note: Use a negative sign with your answer to indicate cash was used by activities and/or a decrease in cash, JM Smucker Co Statement of Cash Flow ($ millions) For the year ended April 30, 2018 Cash from operating activities $ 1,339.8 Cash from investing activities (305.4) Cash from financing activities (1,006.1) Net increase (decrease) in cash ( 28.3 Cash, beginning of year 183.6 Cash, end of year $ 211.9 d. Compute ROA e. Compute profit margin (PM). f. Compute asset turnover (AT). g. Compute ROE. Notes: Round ROA, PM, and ROE to one decimal place (ex: 10.5%). Round AT (asset turnover) to two decimal places (0.33). ROA 8.65% PM 0 % AT ROE 0 0%
