Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 25, 2008 ($ millions): Revenue $ 13,652.1 Cash from operating activities 1,729.9 Cash, beginning year 417.1 Stockholders' equity 6,215.8 Noncash assets 18,380.6 Cash from financing activities* (1,043.6) Cost of goods sold 8,778.3 Total expenses (other than cost of goods sold) 3,579.1 Cash, ending year 661 Total liabilities 12,825.8 Cash from investing activities (442.4) *Cash from financing activities includes the effects of foreign exchange rate fluctuations. (a) Prepare the income statement, the balance sheet, and the statement of cash flows for General Mills for the fiscal year ended May 2008. Hint: Enter negative numbers only for answers in the statement of cash flows (if applicable). General Mills, Inc. Income Statement ($ millions) For Year Ended May 25, 2008 Revenue Gross profit Net income General Mills, Inc. Balance Sheet ($ millions) May 29, 2008 Liabilities Total liabilities Assets Cash Total assets Total liabilities and equity $ General Mills, Inc. Statement of Cash Flows ($ millions) For Year Ended May 25, 2008 Cash from operating activities $ Cash from financing activities Net change in cash Cash, ending year (b) Does the negative amount for cash from financing activities concern us? Explain. OA negative amount for cash from financing activities implies that the company is unable to pay its debts as they come due and should be interpreted negatively. A negative amount for cash from financing activities is the result of additional borrowings. Because the additional funds are invested in earnings-generating assets, this should be viewed positively. OA negative amount for cash from financing activities implies that the market value of the company's long-term debt has declined and this change should be viewed negatively. OA negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the company's ability to retire debt obligations. (c) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity). Round all answers to two decimal places. For example, asset turnover is rounded like this: 0.34567 = 0.35; all other percentage ratios are rounded like this: 0.12345 = 12.35%. (i) Profit margin (ii) Asset turnover (iii) Return on assets (c) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity). Round all answers to two decimal places. For example, asset turnover is rounded like this: 0.34567 = 0.35; all other percentage ratios are rounded like this: 0.12345 = 12.35%. (i) Profit margin (ii) Asset turnover (iii) Return on assets (iv) Return on equity