Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet
ID: 2498343 • 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).
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 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).
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. Round answers to one decimal place.
0.00 points out of 1.00
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
(1)
net sale 15624.2
Cost of goods sold (15624.2 * 0.60) - 9374.5
selling and administrative expenses(21.5% * 15624.2) - 3359.2
diversitures gain 0
reconstruction impairment 0
operating income 2890.5
interest -346.3
Income before income tax 2544.2
Income tax 29.7% -755.6
After-tax earnings from joint ventures 96.4
Net earnings including noncontrolling interests 1885
Net earnings attributable to noncontrolling interests(0.3%) - 5.7
Net earnings attributable to General Mills 1879.3
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