Refer to the annual report of Campbell SoupCompany in Appendix A.

a. Compute all of the expense categories as a percentage of sales for each of the three years shown. Analyze and comment on the percentages computed.
b. Comment on the extent to which each component in (a) is expected to persist into future years.
c. The provision for income taxes makes up what percent of earnings before income taxes? What factors might cause this percentage to deviate from the statutory percentage of 35%?
d. Campbell Soup reports divestiture and restructuring programs in Years 9 and 10. What amount of expense is recorded relating to these programs? To what activities do these costs relate? How do you interpret these costs?
e. How might large liabilities such as Campbell Soup’s restructuring liabilities be used to manage earnings?

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