Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet
ID: 2436844 • Letter: A
Question
Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet
Following are the income statements and balance sheets of General Mills, Inc.
Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed).
Round answers to one decimal place.
Do not use negative signs with your answers.
Forecast General Mill's fiscal 2012 balance sheet using the following relations (assume"no change" for accounts not listed). Assume that all capital expenditures are purchases of land, building and equipment, net. ($ millions).
Round answers to one decimal place.
Do not use negative signs with your answers.
Income Statement,Fiscal Years Ended ($ millions) May 29, 2011 May 30, 2010 Net Sales $ 14,880.2 $ 14,635.6 Cost of sales 8,926.7 8,835.4 Selling, general and administrative expenses 3,192.0 3,162.7 Divestitures (gain), net (17.4) -- Restructuring, impairment, and other exit costs 4.4 31.4 Operating income 2,774.5 2,606.1 Interest, net 346.3 401.6 Earnings before income tax expense and equity in income of affiliates 2,428.2 2,204.5 Income tax expense 721.1 771.2 After-tax earnings from joint ventures 96.4 101.7 Net earnings including noncontrolling interests 1,803.5 1,535.0 Net earnings attributable to noncontrolling interests 5.2 4.5 Net earnings attributable to General Mills $ 1,798.3 $ 1,530.5
Explanation / Answer
Income statement
2012 estimate Net Sales 15624.2 Cost of goods sold 9374.5 Selling and administrative expenses 3359.2 Divestiture 0 Restructuring, impairment and other cost 0 Operating income 2890.5 Interest expenses 346.3 Earnings before income tax expense and equity in income of affiliates 2544.2 Income tax expenses 755.6 Equity in income of affiliates 96.4 Net earnings including noncontrolling interests 1885 Net earnings attributable to noncontrolling interests 5.7 Net earning to General Mills 1879.3