80.2K

Verified Solution

Link Copied!

Question 3 Inventory accounts: Using the excerpts below from The Kraft Heinz Companys Financial Statements and Notes to Financial Statements from its 2020 annual report, answer the following (NOTE: all numbers given in the excerpts are in $millions): a. If Kraft Heinz used $9,087 million worth of packaging and ingredients during the fiscal year ended 12/26/2020, how much packaging and ingredients did they purchase during the fiscal year ended 12/26/2020? Assume all packaging and ingredients were used as direct materials. b. Calculate the Cost of Goods Manufactured for Kraft Heinz for the fiscal year ended 12/26/2020.

The Kraft Heinz Company Consolidated Balance Sheets (in millions, except per share data) December 26, 2020 December 28, 2019 ASSETS Cash and cash equivalents Trade receivables (net of allowances of $48 at December 26, 2020 and $33 at December 28, 2019) Inventories Prepaid expenses Other current assets Assets held for sale Total current assets 3,417 $ 2,063 2,554 351 574 1,863 10,822 2,279 1,973 2,721 384 618 122 8,097 Note 7. Inventories Inventories consisted of the following (in millions): Packaging and ingredients Work in process Finished product Inventories December 26, 2020 December 28, 2019 482 S 511 268 364 1,804 1,846 2,554 s 2.721 The Kraft Heinz Company Consolidated Statements of Income (in millions, except per share data) Net sales Cost of products sold Gross profit Selling, general and administrative expenses, excluding impairment losses Goodwill impairment losses Intangible asset impairment losses Selling, general and administrative expenses Operating income (loss) Interest expense Other expense/income) Income (loss) before income taxes Provision for benefit from) income taxes Net income/loss) Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to common shareholders Per share data applicable to common shareholders: Basic earnings/(loss) Diluted earnings/(loss) December 26, 2020 December 28, 2019 December 29, 2018 S 26,185 S 24,977 $ 26,268 17,008 16,830 17,347 9,177 8,147 8,921 3,650 3,178 3,190 2,343 1,197 7,008 1,056 702 8,928 7,049 5,077 19,126 2,128 3,070 (10,205) 1,394 1,361 1,284 (296) (952) (168) 1.030 2,661 (11,321) 669 728 (1,067) 361 1,933 (10,254) S (2) (62) 356 $ 1,935 $ (10,192) S 0.29 $ 0.29 1.59 $ 1.58 (8.36) (8.36)

Answer & Explanation Solved by verified expert

See Answer