Analyzing, Forecasting, and Interpreting Income Statement and Balance Sheet Foll
ID: 2755227 • 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).
Instructions: Round answers to one decimal place. Do not use negative signs with your answers. Remember to use roundedforecasted net sales with subsequent calculations.
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).
Instructions: Round answers to one decimal place. Do not use negative signs with your answers. Remember to use roundedforecasted net sales with subsequent calculations.
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
Explanation / Answer
Answer:
Income statement Particulars Amount Net Sales $18,662.81 Cost of Sales $11,925.53 Selling, general and administrative expenses $3,732.56 Divestitures (gain) 0 Restructuring, impairment, and other exit costs 0 Operating profit $3,004.71 Interest, net 316.9 Earnings before income taxes and after tax earnings from joint ventures $2,687.81 Income taxes $784.84 After-tax earnings from joint ventures $98.80 Net earnings, including earnings attributable to redeemable and noncontrolling interests $2,001.77 Net earnings attributable to redeemable and noncontrolling interests $40.04 Net earnings attributable to General Mills $1,961.74