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Use a spreadsheet to construct common-size income statements (which General Mills calls Statements of Earnings) and balance sheets for 2005 and 2006. Common-size income statements

Use a spreadsheet to construct common-size income statements (which General Mills calls Statements of Earnings) and balance sheets for 2005 and 2006. Common-size income statements scale each income statement line item by net sales. Common-size balance sheets are created by dividing each figure on a given years balance sheet by that years total assets, thereby creating a balance sheet on a percent of assets basis.

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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. 7- GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS May 28. 2006 May 29, 2805 ASSETS Current Assets Cash and cash equivalents Receivables $647 1 ,076 1,055 216 182 3,176 $573 1,034 1,037 203 208 3,055 Prepaid expenses and other current assets Deferred income taxes Total Current Assets Land, Buildings and Equipment Goodwill Other Intangible Assets Other Assets Total Assets 2,997 6,652 3,607 1.775 $18,207 3,111 6,684 3,532 1,684 $18,066 LIABILITIES AND EQUITY Current Liabilities: Accounts payable Current portion of long-term debt Notes payable Other current liabilities $1,151 2,131 1,503 1,353 6,138 $1,136 1,638 299 1,111 4,184 Total Current Liabilities Long-term Debt Deferred Income Taxes Other Liabilities 2,415 1,822 924 11,299 4,255 1,851 967 11,257 Total Liabilities Minority Interests 1,136 1,133 Stockholders' Equity: Cumulative preference stock, none issued Common stock, 502 shares issued Additional paid-in capital Retained earnings Common stock in treasury, at cost, shares of 146 in 2006 and 133 in 2005 Unearned compensation Accumulated other comprehensive income 50 5,737 5,107 (5,163) (84) 125 5,772 $18,207 50 5,691 4,501 (4,460) (114) Total Stockholders' Equi Total Liabilities and Equi 5,676 $18,066 See accompanying notes to consolidated financial statements. GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Ma: 28, 2006 May 30, 2004 Cash Flows -Operating Activities 1,090 1,240 $1,055 Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Changes in current assets and liabilities Tax benefit on exercised options Pension and other postretirement costs Restructuring and other exit costs Divestitures (gain) Debt repurchase costs Other, net 424 443 109 184 258 62 (70) 84 63 (74) 26 Net Cash Provided erating Activities 1,771 1,711 1,461 Cash Flows Investing Activities (653) Purchases of land, buildings and equipment Investments in businesses Investments in affiliates, net of investment returns and dividends Purchases of marketable securities Proceeds from sale of marketable securities Proceeds from disposal of land, buildings and equipment Proceeds from disposition of businesses (360) (26) 78 (434) 129 799 Net Cash Provided (Used) by Investing Activities 496 Cash Flows-Financing Activities 1,197 (1,023) 576 Change in notes payable Issuance of long-term debt Payment of long-term debt Proceeds from issuance of preferred membership interests of subsidiary Common stock issued Purchases of common stock for treasury Dividends paid (1,386) 157 (885) (485) 835 195 (771) 192 (24) 413 13 Net Cash Used by Financing Activities 943 Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents-Beginning of Year Cash and Cash Equivalents End of Year (178) 573 647 703 $ 751 S 573 Cash Flow from Changes in Current Assets and Liabilities: Receivables Inventories Prepaid expenses and other current assets Accounts payable $ (22) (19) 247 201 Changes in Current Assets and Liabilities $ 184 258 See accompanying notes to consolidated financial statements 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. 7- GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS May 28. 2006 May 29, 2805 ASSETS Current Assets Cash and cash equivalents Receivables $647 1 ,076 1,055 216 182 3,176 $573 1,034 1,037 203 208 3,055 Prepaid expenses and other current assets Deferred income taxes Total Current Assets Land, Buildings and Equipment Goodwill Other Intangible Assets Other Assets Total Assets 2,997 6,652 3,607 1.775 $18,207 3,111 6,684 3,532 1,684 $18,066 LIABILITIES AND EQUITY Current Liabilities: Accounts payable Current portion of long-term debt Notes payable Other current liabilities $1,151 2,131 1,503 1,353 6,138 $1,136 1,638 299 1,111 4,184 Total Current Liabilities Long-term Debt Deferred Income Taxes Other Liabilities 2,415 1,822 924 11,299 4,255 1,851 967 11,257 Total Liabilities Minority Interests 1,136 1,133 Stockholders' Equity: Cumulative preference stock, none issued Common stock, 502 shares issued Additional paid-in capital Retained earnings Common stock in treasury, at cost, shares of 146 in 2006 and 133 in 2005 Unearned compensation Accumulated other comprehensive income 50 5,737 5,107 (5,163) (84) 125 5,772 $18,207 50 5,691 4,501 (4,460) (114) Total Stockholders' Equi Total Liabilities and Equi 5,676 $18,066 See accompanying notes to consolidated financial statements. GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Ma: 28, 2006 May 30, 2004 Cash Flows -Operating Activities 1,090 1,240 $1,055 Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Changes in current assets and liabilities Tax benefit on exercised options Pension and other postretirement costs Restructuring and other exit costs Divestitures (gain) Debt repurchase costs Other, net 424 443 109 184 258 62 (70) 84 63 (74) 26 Net Cash Provided erating Activities 1,771 1,711 1,461 Cash Flows Investing Activities (653) Purchases of land, buildings and equipment Investments in businesses Investments in affiliates, net of investment returns and dividends Purchases of marketable securities Proceeds from sale of marketable securities Proceeds from disposal of land, buildings and equipment Proceeds from disposition of businesses (360) (26) 78 (434) 129 799 Net Cash Provided (Used) by Investing Activities 496 Cash Flows-Financing Activities 1,197 (1,023) 576 Change in notes payable Issuance of long-term debt Payment of long-term debt Proceeds from issuance of preferred membership interests of subsidiary Common stock issued Purchases of common stock for treasury Dividends paid (1,386) 157 (885) (485) 835 195 (771) 192 (24) 413 13 Net Cash Used by Financing Activities 943 Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents-Beginning of Year Cash and Cash Equivalents End of Year (178) 573 647 703 $ 751 S 573 Cash Flow from Changes in Current Assets and Liabilities: Receivables Inventories Prepaid expenses and other current assets Accounts payable $ (22) (19) 247 201 Changes in Current Assets and Liabilities $ 184 258 See accompanying notes to consolidated financial statements

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