116 10 CAMPBELL SOUP COMPANY Consolidated Statements of Earnings (millions, except per share amounts) 2014 2013 2012 53 weeks 52 weeks 52 weeks Net sales $ 8,268 $ 8,052 $ 7.175 Costs and expenses Cost of products sold 5.370 5.140 4.365 Marketing and selling expenses. 935 947 941 Administrative expenses 573 677 580 Research and development expenses 121 128 Other expenses (income) 22 29 11 Restructuring charges 35 51 7 Total costs and expenses 7,076 6,972 6,020 Earnings before interest and taxes 1.192 1.080 1.155 Interest expense 122 135 114 Interest income 8 Earnings before taxes 1,073 955 1.049 Taxes on earnings 347 275 325 Earnings from continuing operations 726 680 724 Earnings (loss) from discontinued operations 81 (231) 40 Net earnings 807 449 764 Less: Net earnings (loss) attributable to no controlling interests (11) (9) (10) Net earnings attributable to Campbell Soup Company $ 819 $ 458 $ 774 Per Share - Basic Earnings from continuing operations attributable to Campbell Soup Company ... S 2.35 $ 2.19 $ 2.30 Earnings (loss) from discontinued operations .26 (.74) .12 Net earnings attributable to Campbell Soup Company $ 2.61 $ 1.46 $ 2.43 Weighted average shares outstanding - basic. 314 314 317 Per Share - Assuming Dilution Earnings from continuing operations attributable to Campbell Soup Company 2.33 $ 2.17 $ 2.29 Earnings (loss) from discontinued operations .26 (73) .12 Net earnings attributable to Campbell Soup Company 2.59 $ 1.44 $ 2.41 Weighted average shares outstanding - assuming dilution 316 317 319 The sum of the individual per share amounts may not add due to rounding See accompanying Notes to Consolidated Financial Statements. $ $ CAMPBELL SOUP COMPANY Consolidated Balance Sheets (millions, except per share amounts) August 3. 2014 July 28 2013 232 $ 670 1,016 182 2.100 333 635 925 135 193 2.221 2.260 2.297 1.021 131 393 8.323 2,318 2.433 1.175 87 8.113 $ S 1.909 1,771 S 527 553 101 37 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Current assets of discontinued operations held for sale Total current assets Plant assets, net of depreciation. Goodwill Other intangible assets, net of amortization. Other assets Non-current assets of discontinued operations held for sale Total assets Current liabilities Short-term borrowings. Payable to suppliers and others. Accrued liabilities Dividend payable Accrued income taxes Current liabilities of discontinued operations held for sale. Total current liabilities Long-term debt Deferred taxes Other liabilities Non-current liabilities of discontinued operations held for sale Total liabilities Commitments and contingencies Campbell Soup Company shareholders' equity Preferred stock, authorized 40 shares, none issued. Capital stock, 5.0375 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 Total Campbell Soup Company shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 523 617 100 19 114 3.282 2.544 489 776 2.989 2.244 548 729 22 6.510 7,113 12 330 2.198 (356) (569) 1,615 (12) 1.603 8,113 $ 12 362 1.772 (364) (565) 1.217 (7) 1.210 8.323 S This problem is based on the 2014 annual report of Campbell Soup Company. Required: a. Compute the following profitability measures for the year ended August 3, 2014 (Dividends declared were $1.248 per common share): 1. Return on investment, based on net earnings (perform a DuPont analysis). (Round your answer to 1 decimal place.) ROI % 2. Return on equity, based on net earnings and total equity. (Round your answer to 1 decimal place.) ROE % 3. Pricelearnings ratio. Use $41.96 as the year-end market price. (Round your answer to 1 decimal place.) Price/earnings ratio 4. Dividend yield. Use $41.96 as the year-end market price. (Round your answer to 1 decimal place.) Dividend yield % 5. Dividend payout ratio. (Round your answer to 1 decimal place.) Dividend payout ratio % b. Compute the following liquidity measures at August 3, 2014: 1. Working capital. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5).) Working capital million 2. Current ratio. (Round your answer to 2 decimal places.) Current ratio 3. Acid-test ratio (Round your answer to 2 decimal places.) Acid-test ratio