Refer to General Mills Statement of Earnings for fiscal 2006 (the year ended May 28, 2006)

1. Review the revenue recognition policies of General Mills discussed in Note 1. (Summary of Significant Accounting Policies). Discuss how the recognition policies for recording net sales and the treatment of returns and promotions are consistent with the revenue recognition criteria under Generally Accepted Accounting Principle (GAAP).
2. What are General Mills major expenses?

GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS In Mlaons, Excep pri Share Data May 28, 2006 Fisci,-.ll Ended Net Sales Costs and Expenses: 11,640 $11,244 $11,070 Cost of sales Selling, general and administrative Interest, net Restructuring and other exit costs Divestitures (gain) Debt repurchase costs 6,966 2,678 399 30 6,834 2,418 455 84 (499) 137 6,584 2,443 508 26 94299,561 10,073 1,567 541 Total Costs and Expenses ,509 528 74 $ 1,055 Earnings before Income Taxes and After-tax Earnings from Joint Ventures Income Taxes 1,815 664 6489 $1,240 After-tax Earnings from Joint Ventures $1,090 $ 3.34 S 3.08 1.24 $ 2.82 2.60 1.10 Earnings per Share Basic $3.05 $ 2.90 Earnings per Share Diluted S 1.34 See accompanying notes to consolidated financial statements