Formulating Financial Statements from Raw Data and Calculating Ratios

Following is selected financial information from JM Smucker Co. for the year ended April 30, 2018 ($ millions).

Current assets, end of year$1,523.9Long-term liabilities, end of year$6,248.8Cash, end of year188.7Stockholders' equity, end of year7,733.3Cash from investing activities(272.0)Cash from operating activities1,193.6Cost of products sold4,430.6Total assets, beginning of year15,326.9Total liabilities, end of year7,261.9Revenue7,210.0Cash from financing activities*(896.3)Total expenses, other than cost of1,467.6Stockholders' equity, beginning of year6,713.2product soldDividends paid343.3

* Cash from financing activities includes the effects of foreign exchange rate fluctuations.

a. Prepare the income statement for the year ended April 30, 2018.

Note: Do not use negative signs with any of your answers.

J M Smucker CoIncome Statement ($ millions)For the year ended April 30, 2018RevenuesAnswer

Cost of product soldAnswer

Gross profitAnswer

ExpensesAnswer

Net incomeAnswer

b. Prepare the balance sheet as of April 30, 2018.

J M Smucker CoBalance Sheet ($ millions)April 30, 2018Current assetsAnswer

Current liabilitiesAnswer

Long-term assetsAnswer

Long-term liabilitiesAnswer

Total liabilitiesAnswer

-Stockholders' equityAnswer

Total assetsAnswer

Total liabilities and equityAnswer

c. Prepare the statement of cash flows for the year ended April 30, 2018.

Note: Use a negative sign with your answer to indicate cash was used by activities and/or a decrease in cash.

J M Smucker CoStatement of Cash Flow ($ millions)For the year ended April 30, 2018Cash from operating activitiesAnswer

Cash from investing activitiesAnswer

Cash from financing activitiesAnswer

Net increase (decrease) in cashAnswer

Cash, beginning of yearAnswer

Cash, end of yearAnswer

d. Compute ROA.

e. Compute profit margin (PM).

f. Compute asset turnover (AT).

g. Compute ROE.