Refer to the 2014 Annual Report of Mondelez International, Inc. To answer the questions in this part, consider only the information provided in the Statement of Income, Balance Sheet, and Statement of Cash Flows. Answer the following questions.
a. Estimate cash collected from customers (Assume that only trade receivables relate to customers and that Mondelezs revenue is presented net of bad debt expense).
b. Estimate cash paid to suppliers. Assume that all accounts payable relate to suppliers.
c. Assume the Company measures bad debt expenses as 2% of beginning gross trade receivables. Calculate the amount of bad debts written off.
d. How much did the Company pay in total cash dividends during fiscal 2014?
e. How much did the Company pay to repurchase shares during fiscal 2014?
Mondelz International, Inc. and Subsidiaries
Consolidated Statements of Equity
(in millions of U.S. dollars, except per share data)
Mondelz International, Inc. and Subsidiaries Consolidated Statements of Earnings For the Years Ended December 31 (in millions of U.S. dollars, except per share data) 2014 2013 2012 $35,299 22,189 13,110 8,679 273 (30) 217 3,971 $35,015 21,939 13,076 9,176 153 (107) 217 3,637 1,863 1,774 1,579 2,392 60 2,332 168 1,606 1,603 3,935 1,488 3,094 Net revenues $34,244 Cost of sales 21,647 Gross profit 12,597 Selling, general and administrative expenses 8,457 Asset impairment and exit costs 692 Gains on acquisition and divestitures, net Amortization of intangibles 206 Operating income 3,242 Interest and other expense, net 688 Earnings from continuing operations before income taxes 2,554 Provision for income taxes 353 Earnings from continuing operations 2,201 Earnings from discontinued operations, net of income taxes Net earnings 2,201 Noncontrolling interest 17 Net earnings attributable to Mondelz International $ 2,184 Per share data: Basic earnings per share attributable to Mondelz International: Continuing operations $ 1.29 Discontinued operations Net earnings attributable to Mondelz International $ 1.29 Diluted earnings per share attributable to Mondelz International: Continuing operations $ 1.28 Discontinued operations Net earnings attributable to Mondelz International $ 1.28 Dividends declared $ 0.58 See notes to consolidated financial statements. 20 $ 3,915 27 $ 3,067 $ 1.30 0.91 $ 2.21 0.90 0.83 $ 1.73 $ $ 1.29 0.90 $ 2.19 $ 0.54 0.88 0.83 $ 1.71 $ 1.00 All Consolidated Balance Sheets, as of December 31 (in millions of U.S. dollars, except share data) 2014 2013 $ 1,631 $ 2,622 3,802 4,463 ASSETS Cash and cash equivalents Trade receivables (net of allowances of $66 at December 31, 2014 and $86 at December 31, 2013) Other receivables (net of allowances of $91 at December 31, 2014 and $73 at December 31, 2013) Inventories, net Deferred income taxes Other current assets Total current assets Property, plant and equipment, net Goodwill Intangible assets, net Prepaid pension assets Other assets 949 3,480 480 1,408 940 3,743 517 889 11,750 9,827 23,389 20,335 53 1,461 13,174 10,247 25,597 21,994 54 1,449 TOTAL ASSETS $ 66,815 $72,515 LIABILITIES Short-term borrowings Current portion of long-term debt Accounts payable Accrued marketing Accrued employment costs Other current liabilities $ 1,305 1,530 5,299 2,047 946 2,880 $ 1,594 1,003 5,345 2,318 1,043 3,051 14,007 13,865 5,512 2,912 526 2,140 14,354 14,482 6,282 1,962 412 2,491 38,962 39,983 Total current liabilities Long-term debt Deferred income taxes Accrued pension costs Accrued postretirement health care costs Other liabilities TOTAL LIABILITIES Commitments and Contingencies (Note 11) EQUITY Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at December 31, 2014 and December 31, 2013) Additional paid-in capital Retained earnings Accumulated other comprehensive losses Treasury stock, at cost (332,896,779 shares at December 31, 2014 and 291,141,184 shares at December 31, 2013) Total Mondelz International Shareholders' Equity Noncontrolling interest TOTAL EQUITY 31,651 14,529 (7,318) 31,396 13,419 (2,889) (11,112) (9,553) 27,750 103 32,373 159 27853 32,532 TOTAL LIABILITIES AND EQUITY $ 66,815 $72,515 See notes to consolidated financial statements. Mondelz International Shareholders' Equity Accumulated Other Additional Comprehensive Paid-in Retained Earnings/ Treasury Noncontrolling Total Capital Earnings (Losses) Stock Interest Equity $ 31,318 $ 18,067 $ (6,638) $ (7,476) $ 111 $35,382 Common Stock 3,067 27 3,094 - (336) - 6 (330) Balances at January 1, 2012 Comprehensive earnings / (losses): Net earnings Other comprehensive earnings / (losses), net of income taxes Exercise of stock options and issuance of other stock awards Cash dividends declared ($1.00 per share) Spin-Off of Kraft Foods Group, Inc. Dividends paid on noncontrolling interest and other activities 141 (53) 319 - 407 (1,775) (1,775) 89 (8,755) 4,308 (4,358) (4) Balances at December 31, 2012 $ 31.548 $ 10,551 $ (2,666) $ (7.157) $ 140 $32.416 - 3,915 - 20 3,935 - (223) - (223) Comprehensive earnings / (losses): Net earnings Other comprehensive losses, net of income taxes Exercise of stock options and issuance of other stock awards Common Stock repurchased Cash dividends declared ($0.54 per share) Dividends paid on noncontrolling interest and other activities Balances at December 31, 2013 10 (97) 343 - 256 (161) (2,739) (2,900) (950) - - (950) 1) $ 31,396 $ 13,419 $ (2,889) $ (9,553) $ 159 $32,532 2,184 - 17 2,201 (4,429) - (33) (4.462) - 271 (98) 332 Comprehensive earnings / (losses): Net earnings Other comprehensive losses, net of income taxes Exercise of stock options and issuance of other stock awards Common Stock repurchased Cash dividends declared ($0.58 per share) Dividends paid on noncontrolling interest and other activities Balances at December 31, 2014 $ 505 (1,891) (1,891) - (976) (976) (16) (40) (56) $ 31.651 $ 14.529 $ (7.318) $ (11.112 $ 103 $27.853 Mondelz International, Inc. and Subsidiaries Consolidated Statements of Cash Flows For the Years Ended December 31 (in millions of U.S. dollars) 2014 2013 2012 $ 2,201 $ 3,935 $ 3,094 1,059 141 (186) 1,077 128 (64) (30) 97 (385) 608 1,345 162 369 (107) 126 240 CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES Net earnings Adjustments to reconcile net earnings to operating cash flows: Depreciation and amortization Stock-based compensation expense Deferred income tax (benefit) / provision Gains on acquisition and divestitures, net Asset impairments Benefit from indemnification resolution Loss on early extinguishment of debt Unrealized gain on planned coffee business divestiture currency hedge Other non-cash items, net Change in assets and liabilities, net of acquisitions and divestitures: Receivables, net Inventories, net Accounts payable Other current assets Other current liabilities Change in pension and postretirement assets and liabilities, net Net cash provided by operating activities 493 (628) (184) III (19) 44 184 (188) 387 (86) 135 (6) 492 (116) 793 (42) 62 (126) (599) (129) 505 217 (1,160) 56 3,562 6,410 3,923 (1,642) (1,610) (1,622) (119) 60 200 CASH PROVIDED BY 7 (USED IN) INVESTING ACTIVITIES Capital expenditures Acquisition, net of cash received Proceeds from divestitures, net of disbursements Cash received from / (transferred to) Kraft Foods Group related to the Spin-Off Proceeds from sale of property, plant and equipment and other Net cash used in investing activities 55 143 (410) 133 7 (1,642) (1,483 (1,687) CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES Issuances of commercial paper, maturities greater than 90 days Repayments of commercial paper, maturities greater than 90 days Net issuances of other short-term borrowings, net Long-term debt proceeds Long-term debt repaid Repurchase of Common Stock Dividends paid Other Net cash (used in) / provided by financing activities 2,082 (2,713) 398 3,032 (3,017) (1,700) (964) 194 1,329 (607) 613 3,248 (7,559) (2,900) (943) 132 1,579 (1,581) 95 6,775 (4,495) (2,058) (111) (2,688) (6,687) 204 Effect of exchange rate changes on cash and cash equivalents (223 (93) 61 Cash and cash equivalents: Increase / (decrease) Balance at beginning of period Balance at end of period (991) 2.622 (1,853) 4,475 2,501 1,974 S 1,631 $ 2,622 $ 4,475 Cash paid Interest 827 $ 1,150 $ 2,406 Income taxes S 1,238 $ 760 $ 1,057
