Refer to the FY2016 income statement and balance sheet for General Mills, Inc (GMI), along with the forecasted FY2017 income statement that you computed in the last exercise Use that information and the following assumptions to forecast the GMI balance sheet for FY2017 Unless noted in other assumptions, all assets and liabilities as a percentage of FY2017 sales remain unchanged Depreciation expense for FY2016 is $580 1 million FY2016 capital expenditure (CAPEX) is $729 3 million, and its land, buildings, and equipment in FY2015 total $3,783 3 million Goodwill remains unchanged The cash flow statement reports that amortization expense for each of the next 5 years is estimated to be $28 million Notes payable remains unchanged Long term debt footnotes reveal that principal payments due on long term debt in the next 5 years are $1,103 4 million in FY2017, $604 7 million in FY2018, $1,150 4 million in FY2019, $1,056 0 million in FY2020, and $555 9 million in FY2021 Stock repurchases will be $300 million in FY2017 Dividends in FY2016 are $1,071 7 million and will not change in FY2017 as a percentage of net earnings attributable to GMI The FY2016 income statement and balance sheet for General Mills, a competitor of P G, follow Use them to answer the required questions Refer to the FY2016 income statement and balance sheet for General Mills along with the forecasted FY2017 income statement in Reviews Use the following assumptions to forecast the GMI income statement for FY2017 Net sales will decrease by 1 5 (150 basis points) in FY 2017 Because of ongoing restructuring and efficiency improvement measures, operating expenses as a percentage of net sales will be lower than in FY2016, as follows Cost of sales 200 basis points lower Selling, general, and administrative (SGA) expenses 50 basis points lower No announced divestitures for FY2017 Restructuring, impairment, and other exit costs will be half the dollar amount reported in FY2016 Tax expense as a percentage of pretax income will remain unchanged The following line items remain unchanged in dollar terms Interest, net After tax earnings from joint ventures Net earnings attributable to redeemable and noncontrolling interests Forecasted FY 2017 $ millions Net sales Cost of sales Analytical Foundation of Business Financial Accounting Exercise 8 Forecasting the Balance Sheet Operating profit Interest, net GENERAL MILLS INC Consolidated Statements of Earnings Selling, general, and administrative expenses Divestitures (gain) Restructuring, impairment, and other exit costs Earnings before income taxes and after tax earnings from joint ventures Income taxes After tax earnings from joint ventures Net earnings, including earnings attributable to redeemable and noncontrolling interests Net earnings attributable to redeemable and noncontrolling interests Net earnings attributable to General Mills 12 Months Ended May 29, 2016 $16,563 1 10,733 6 3,118 9 (148 2) 151 4 2,707 4 303 8 2,403 6 755 2 88 4 1,736 8 39 4 $ 1,697 4

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Refer to the FY2016 income statement and balance sheet for General Mills, Inc. (GMI), along with the forecasted FY2017 income statement that you computed in

Refer to the FY2016 income statement and balance sheet for General Mills, Inc. (GMI), along with the forecasted FY2017 income statement that you computed in the last exercise. Use that information and the following assumptions to forecast the GMI balance sheet for FY2017.

Unless noted in other assumptions, all assets and liabilities as a percentage of FY2017 sales remain unchanged.
Depreciation expense for FY2016 is $580.1 million.
FY2016 capital expenditure (CAPEX) is $729.3 million, and its land, buildings, and equipment in FY2015 total $3,783.3 million.
Goodwill remains unchanged.
The cash flow statement reports that amortization expense for each of the next 5 years is estimated to be $28 million.
Notes payable remains unchanged.
Long-term debt footnotes reveal that principal payments due on long-term debt in the next 5 years are: $1,103.4 million in FY2017, $604.7 million in FY2018, $1,150.4 million in FY2019, $1,056.0 million in FY2020, and $555.9 million in FY2021.
Stock repurchases will be $300 million in FY2017.
Dividends in FY2016 are $1,071.7 million and will not change in FY2017 as a percentage of net earnings attributable to GMI.

The FY2016 income statement and balance sheet for General Mills, a competitor of P&G, follow. Use them
to answer the required questions.
Refer to the FY2016 income statement and balance sheet for General Mills along with the forecasted
FY2017 income statement in Reviews

Use the following assumptions to forecast the GMI income statement for FY2017.

Net sales will decrease by 1.5% (150 basis points) in FY 2017.
Because of ongoing restructuring and efficiency improvement measures, operating expenses as a percentage of net sales will be lower than in FY2016, as follows:
- Cost of sales: 200 basis points lower.
- Selling, general, and administrative (SGA) expenses: 50 basis points lower.
No announced divestitures for FY2017.
Restructuring, impairment, and other exit costs will be half the dollar amount reported in FY2016.
Tax expense as a percentage of pretax income will remain unchanged.
The following line items remain unchanged in dollar terms:
- Interest, net.
- After-tax earnings from joint ventures.
- Net earnings attributable to redeemable and noncontrolling interests.
- Forecasted FY 2017

$ millions Net sales... Cost of sales. Analytical Foundation of Business Financial Accounting Exercise 8: Forecasting the Balance Sheet Operating profit. Interest, net. GENERAL MILLS INC. Consolidated Statements of Earnings Selling, general, and administrative expenses... Divestitures (gain)..... Restructuring, impairment, and other exit costs Earnings before income taxes and after-tax earnings from joint ventures. Income taxes After-tax earnings from joint ventures Net earnings, including earnings attributable to redeemable and noncontrolling interests Net earnings attributable to redeemable and noncontrolling interests Net earnings attributable to General Mills. 12 Months Ended May 29, 2016 $16,563.1 10,733.6 3,118.9 (148.2) 151.4 2,707.4 303.8 2,403.6 755.2 88.4 1,736.8 39.4 $ 1,697.4