Please show work for rating..... Analyzing, Forecasting, and Interpreting Income
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Question
Please show work for rating.....
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 rounded forecasted 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 rounded forecasted 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
Income Statement, Fiscal Years Ended (in $ millions) Forecast for 2014 Forecast for 2014 Net Sales 5.00% 18662.805 Cost of Sales 63.90% 11925.5324 Selling, general and administrative expenses 20.00% 3732.561 Divestitures (gain) 0.00% 0 Restructuring, impairment, and other exit costs 0.00% 0 Operating profit 3004.711605 Interest, net 316.9 316.9 Earnings before income taxes and after tax earnings from joint ventures 2687.811605 Income taxes 29.20% 784.8409887 After-tax earnings from joint ventures 98.8 98.8 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2001.770616 Net earnings attributable to redeemable and noncontrolling interests 2.00% 40.03541233 Net earnings attributable to General Mills 1961.735204 Balance Sheet 2014 ($ millions) Estimated Assets Cash and cash equivalents 783.8378 Receivables 1511.68 Inventories 1623.664 Deferred income taxes 130.6396 Prepaid expenses and other 466.5701 Total current assets 4516.3915 Land, buildings, and equipment 0 Goodwill 8622.2 Other intangible assets 5015.1 Other assets 877.1518 Total assets 19030.8433 Liabilities and equity Accounts payable 0 Short-term debt (plug) 0 Current portion of long-term debt 1181.9 Notes payable 0 Other current liabilities 5293.9 Total current liabilities 6475.8 Total long-term debt 0 Deferred income taxes 1455.699 Other liabilities 2052.909 Total liabilities Answer Redeemable interest 967.5 Stockholders equity Common stock 75.5 Additional paid-in capital 1166.6 Retained earnings 12664.3352 Common stock in treasury -3,687.20 Accumulated other comprehensive loss -1,585.30 Total stockholders' equity 8,633.94 Noncontrolling interests 456.3 Total equity 9,090.24 Total liabilities and Equity 19,030.84