McCormick & Company, Inc. is one of the world’s leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick’s consolidated balance sheets for 20X2 and 20X3 follow.

Common-Size and Rate of Change Analyses: McCormick; Refer to the information for McCormick above.

Required:

Compute the common-size balance sheet for 20X3 and the rate of the change balance sheet for 20X3. Which two asset accounts and which two liability and shareholders’ equity accounts are the largest relative to total assets in 20X3? Which two asset accounts and which two liability and shareholders’ equity accounts grew at the fastest rates in 20X3? (Note: You may find it helpful to enter the data into an Excel spreadsheet for these computations.)
 

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McCormick: Consolidated Balance Sheets Dollar Amounts in Millions 20X2 20X3 Assets Current Assets Cash and Equivalents Receivables $ 79.0 $ 63.0 495.5 465.9 615.0 125.5 $ 1,285.4 547.3 1,695.3 323.5 313.9 $ 4,165.4 Inventories Prepaid Expenses and Other Assets Total Current Assets 676.9 134.8 $ 1,370.2 576.6 Property and Equipment, Net Goodwill Intangible Assets, net Investments and Other Assets 1,798.5 333.4 371.0 $ 4,449.7 Total Assets Liabilities and Shareholders' Equity Current Liabilities $ 140.3 $ 211.6 2.5 387.3 461.7 51,063.1 1,019.0 419.9 Short-Term Borrowings Current Portion of Long-Term Debt Trade Accounts Payable Other Accrued Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities Shareholders' Equity Common Stock Retained Earnings Accumulated Other Comprehensive Loss Noncontrolling interests Total Shareholders' Equity Total Liabilities and Shareholders' Equity 252.3 375.8 419.2 $ 1,187.6 779.2 498.4 $ 2,465.2 $ 2,502.0 908.2 962.4 934.6 (159.9) 17.3 $ 1,700.2 $ 4,165.4 970.4 (0.3) 15.2 $ 1,947.7 $ 4,449.7 McCormick: Consolidated Balance Sheets Dollar Amounts in Millions 20X2 20X3 Assets Current Assets Cash and Equivalents Receivables $ 79.0 $ 63.0 495.5 465.9 615.0 125.5 $ 1,285.4 547.3 1,695.3 323.5 313.9 $ 4,165.4 Inventories Prepaid Expenses and Other Assets Total Current Assets 676.9 134.8 $ 1,370.2 576.6 Property and Equipment, Net Goodwill Intangible Assets, net Investments and Other Assets 1,798.5 333.4 371.0 $ 4,449.7 Total Assets Liabilities and Shareholders' Equity Current Liabilities $ 140.3 $ 211.6 2.5 387.3 461.7 51,063.1 1,019.0 419.9 Short-Term Borrowings Current Portion of Long-Term Debt Trade Accounts Payable Other Accrued Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities Shareholders' Equity Common Stock Retained Earnings Accumulated Other Comprehensive Loss Noncontrolling interests Total Shareholders' Equity Total Liabilities and Shareholders' Equity 252.3 375.8 419.2 $ 1,187.6 779.2 498.4 $ 2,465.2 $ 2,502.0 908.2 962.4 934.6 (159.9) 17.3 $ 1,700.2 $ 4,165.4 970.4 (0.3) 15.2 $ 1,947.7 $ 4,449.7

Answer rating: 100% (QA)

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