Formulating Financial Statements from RawData
Following is selected financial information from General Mills,Inc., for its fiscal year ended May 25, 2003 ($ millions):
| Revenue | $10,506 |
| Cash from operating activities | 1,631 |
| Cash, beginning year | 975 |
| Stockholders' equity | 4,475 |
| Noncash assets | 17,524 |
| Cash from financing activities | (885) |
| Cost of goods sold | 6,109 |
| Total expenses (other than cost of goods sold) | 3,480 |
| Cash, ending year | 703 |
| Total liabilities | 13,752 |
| Cash from investing activities | (1,018) |
Prepare the income statement, the balance sheet, and thestatement of cash flows for General Mills for the fiscal year endedMay 2003.
Hint: Enter negative numbers only for answersin the statement of cash flows (if applicable).
General Mills, Inc.
Income Statement ($ millions)
For Year Ended May 25, 2003
| Revenue | $0 |
| Cash, ending year, total expenses, cost of goods sold, noncashassets | 0 |
| Gross Profit | 0 |
| Cash, ending year, total expenses, cost of goods sold, noncashassets | 0 |
| Net Income | 0 |
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General Mills, Inc.
Balance Sheet ($ millions)
May 25, 2003
assets Liabilities
| cash | $0 | Total Liailities | $0 |
| cash, beginning year, non cash assets, stock holders equity,net income | 0 | cash, beginning year, non cash assets, stock holders equity,net income | 0 |
| Total assets | $0 | Total liabilities and equity | $0 |
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General Mills, Inc.
Statement of Cash Flows ($ millions)
For Year Ended May 25, 2003
| Cash from operating activities | $0 |
| Non cash assets, net income, cash, beginning year, cash frominvesting activities | 0 |
| Cash from financing activities | 0 |
| Net change in cash | 0 |
| Non cash assets, net income, cash, beginning year, cash frominvesting activities | 0 |
| Cash, ending year | $0 |
Does the negative amount for cash from financing activitiesconcern us? Explain. (select)
A negative amount for cash from financing activities impliesthat the company is unable to pay its debts as they come due andshould be interpreted negatively.
A negative amount for cash from financing activities is theresult of additional borrowings. Because the additional funds areinvested in earnings-generating assets, this should be viewedpositively.
A negative amount for cash from financing activities impliesthat the market value of the company's long-term debt has declinedand this change should be viewed negatively.
A negative amount for cash from financing activities reflectsthe reduction of long-term debt, which is a positive sign of thecompany’s ability to retire debt obligations.
(c) Using the statements prepared for part a. compute thefollowing ratios (for this part only, use the year-endbalance instead of the average for assets andstockholders' equity):
Round answers to two decimal places (example for percentageanswers: 0.12345 = 12.35%).
(i) Profit margin
Answer%
(ii) Asset turnover
Answer
(iii) Return on assets
Answer%
(iv) Return on equity
Answer%
