Question

Question 1 Partially correct Mark 20.00 out of 39.00 P Flag question Formulating Financial Statements from Raw Data and Calculating Ratios Following is selected financial information from General Mills Inc. for its fiscal year ended May 27, 2018 ($ millions). Cost of goods sold (COGS) $9,281.6 Cash from operating activities $2,556.9 Cash from investing activities (7,816.9) Noncash assets, end of year 27,202.5 Cash, end of year 359.1 Cash from financing activities 4,929.6 Income tax expense 51.6 Total assets, beginning of year 19,631.3 Revenue 14,166.4 Total liabilities, end of year** 21,718,4 Total expenses, other than COGS 2,886.5 Stockholders' equity, end of year 5.843.2 and income tax * Cash from financing activities includes the effects of foreign exchange rate fluctuations. ** Total liabilities includes redeemable interest. a. Prepare the income statement for the year ended May 27, 2018, Note: Do not use negative signs with any of your answers. General Mills Income Statement (5 millions) For the year ended May 27, 2018 Revenues $ 14166.4 Cost of goods sold 9281.6 X Gross profit Expenses 2886.5 x Income before taxes 1998.3 Income tax expense 51.6 x Net income 1946.7 4884.8 b. Prepare the balance sheet as of May 27, 2018. General Mills Balance Sheet

Answer 1

D A B С 38 39 GM 40 Income statement (S millions) 41 For the year ended May 27, 2018 42 Particular Amount 43 Revenue $14,166.40 44 Cost of good sold ($9,281.60) 45 Gross profit $4,884.80 46 Total expenses other than COGS and ind ($2,886.50) 47 Earning before tax $1,998.30 48 Income tax expense ($51.60) 49 Net income $1,946.70 50 51 b. 52 GM 53 Balance sheet ($ millions) 54 27-May-18 55 Assets Amount (S) Liabilities 56 Cash end of the year $359.10 Total liabilities 57 Non-cash Assets $27,202.50 Stockholders equity 58 Total Assets $27,561.60 Total liabilities Amount $21,718.40 $5,843.20 $27,561.60

D А B с 60 c). 61 GM 62 Statement of cash flow ($ millions) 63 For the year ended May 27, 2018 64 Particular Amount 65 Cash flow from operating activities $2,556.90 66 Cash flow from investing activities ($7,816.90) 67 Cash flow from financing activities $4,929.60 68 Net increase/decrease in cash ($330.40) 69 Cash at beginning of the year $689.50 70 Cash end of the year $359.10 71 72 d. ROA = Net income / ((Total Assets + Total assets beginning of the year)/2)) 73 = $1,946.70 / (($27,561.60 + $19,631.30)/2) 74 = $1,946.70 / $23,596.45 75 = 8.25% 76 77 e. Profit Margin = Net income / Revenue 78 = $1,946.70 / $14,166.4 79 = 13.74% 80 81 f. Assets Turnover = Revenue / (Total assets + Total assets beginning of the year)/2) 82 = $14,166.4 / (($27,561.60+ $19,631.30)/2) 83 = $14,166.4/ $23,596.45 84 = 0.6

A B с D 38 39 GM 40 Income statement ($ millions) 41 For the year ended May 27, 2018 42 Particular Amount 43 Revenue 14166.4 44 Cost of good sold -9281.6 45 Gross profit =B43+B44 46 Total expenses other than COGS and income tax -2886.5 47 Earning before tax =B45+B46 48 Income tax expense -51.6 49 Net income =B47+B48 50 51 b. 52 GM 53 Balance sheet ($ millions) 54 43247 55 Assets Amount (S) Liabilities 56 Cash end of the year 359.1 Total liabilities 57 Non-cash Assets 27202.5 Stockholders equity 58 Total Assets =B56+B57 Total liabilities Amount 21718.4 5843.2 =D56+D57

A B 60 c). 61 GM 62 Statement of cash flow ($ millions) 63 For the year ended May 27, 2018 64 Particular Amount 65 Cash flow from operating activities 2556.9 66 Cash flow from investing activities -7816.9 67 Cash flow from financing activities 4929.6 68 Net increase/decrease in cash =B65+B66+B67 69 Cash at beginning of the year =B70-B68 70 Cash end of the year 359.1

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