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)	$10,312.9	Cash from operating activities	$2,841.0
Cash from investing activities	(8,685.4)	Noncash assets, end of year	30,225.0
Cash, end of year	399.0	Cash from financing activities*	5,477.3
Income tax expense	57.3	Total assets, beginning of year	21,812.6
Revenue	15,740.4	Total liabilities, end of year**	24,131.6
Total expenses, other than COGS	3,207.2	Stockholders' equity, end of year	6,492.4
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 ($ millions)
For the year ended May 27, 2018
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer

b. Prepare the balance sheet as of May 27, 2018.

General Mills
Balance Sheet ($ millions)
May 27, 2018
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer	AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer	AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer	AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer

c. Prepare the statement of cash flows for the year ended May 27, 2018. Note: Use a negative sign with your answer to indicate cash was used by activities and/or a decrease in cash.

General Mills
Statement of Cash Flow ($ millions)
For the year ended May 27, 2018
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
Cash from investing activities	Answer
Cash from financing activities	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer
AnswerCashCash from financing activitiesCash from investing activitiesCash from operating activitiesCash beginning yearCash ending yearCost of goods soldExpensesGross profitIncome before taxesIncome tax expenseLiabilitiesNet incomeNet increase (decrease) in cashNoncash assetsRevenuesStockholders' equityTotal assetsTotal liabilities and equity	Answer

d. Compute ROA. e. Compute profit margin (PM). f. Compute asset turnover (AT).

Notes: Round ROA and PM to one decimal place (ex: 10.5%) Round Asset turnover to two decimal places (0.33)

ROA	Answer
PM	Answer
AT	Answer