Analyzing, Forecasting, and Interpreting Income Statement and Balance Sheet Foll
ID: 2491912 • Letter: A
Question
Analyzing, Forecasting, and Interpreting Income Statement and Balance Sheet
Following are the income statement and balance sheet of General Mills, Inc.
Forecast General Mill's fiscal 2014 income statement using the following relations (assume "no change" for accounts not listed). Assume that depreciation and amortization expense is included as part of selling, general and administrative expense ($ millions).
Round answers to one decimal place. Do not use negative signs with your answers.
Forecast General Mill's fiscal 2014 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.
*Use a negative sign with answers for: 1. Common stock in treasury and 2. Accumulated other comprehensive income.
Income Statement,Fiscal Years Ended (in $ millions) May 26, 2013 May 27, 2012 May 29, 2011 Net Sales $ 17,774.1 $ 16,657.9 $ 14,880.2 Cost of Sales 11,350.2 10,613.2 8,926.7 Selling, general and administrative expenses 3,552.3 3,380.7 3,192.0 Divestitures (gain) -- -- (17.4) Restructuring, impairment, and other exit costs 19.8 101.6 4.4 Operating profit 2,851.8 2,562.4 2,774.5 Interest, net 316.9 351.9 346.3 Earnings before income taxes and after tax earnings from joint ventures 2,534.9 2,210.5 2,428.2 Income taxes 741.2 709.6 721.1 After-tax earnings from joint ventures 98.8 88.2 96.4 Net earnings, including earnings attributable to redeemable and noncontrolling interests 1,892.5 1,589.1 1,803.5 Net earnings attributable to redeemable and noncontrolling interests 37.3 21.8 5.2 Net earnings attributable to General Mills $ 1,855.2 $ 1,567.3 $ 1,798.3 Round answers to one decimal place. Do not use negative signs with your answers. 2014 Income Statement, Fiscal Years Ended ($ millions) Estimated Net sales 18,662.8 Cost of sales 11,925.5 Selling, general and administrative expenses Divestitures (gain), net Restructuring, impairment, and other exit costs Operating profit 3,732.6 0 0 3,004.7 Interest. net 316.9 Earnings before income taxes and after-tax earnings from joint ventures 2,687.8 Income taxes 784.8 After-tax earnings from joint ventures 98.8 Net earnings, including earnings attributable to noncontrolling interests 2,001.8 Net earnings attributable to noncontrolling interests 40 Net earnings attributable to General Mills 1,961.8
Explanation / Answer
Solution.
Preparetion of balance sheet ( Libilities Part)
Income Statement, Fiscal year ended ($ millions 2014 Estimated Particulars Amount Libilities & Equity Account payable 1,493.00 Short term debt Current porrtion of longterm debt 1,181.90 Notes payable 599.70 Other current libilities 1,923.30 Total current libilities 5,197.90 Total long term debt 5,926.10 Deferred income taxes 1,455.70 Other libilities 2,052.90 Total libilities 14,632.60 Redeemable interest 967.50 Stockholder Equity: Common Stock 75.50 Additional paid in capital 1,166.60 Retained earning 11,746.60 Common stock in treasury (3,687.20) Accumulated other comprehensive income (1,585.30) Total stockholder equity 8,683.70 Non controlling interest 476.30 Total equity 9,160.00 Total libilities & Equity 22,937.80