The document provides financial information for General Mills for the fiscal year ended May 26, 2013. It includes items such as revenue, cash from operating activities, stockholders' equity, assets, expenses, and cash amounts. From this information, the assistant prepares an income statement, balance sheet, and statement of cash flows. Negative cash amounts for investing and financing activities are noted but not a major concern. Finally, key financial ratios like profit margin, asset turnover, return on assets, and return on equity are calculated based on the statements.

1. Formulating Financial Statements from Raw Data (lo2, 3)
Following is selected financial information from General Mills, Inc., for its fiscal year ended
May 26,
2013 ($ millions).
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,774.1
Cash from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,926.0
Cash, beginning year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471.2
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,096.0
Noncash assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,916.6
Cash from financing activities* . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,140.4)
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,350.2
Total expenses (other than cost of goods sold) . . . . . . . . . . . . . . 4,568.7
Cash, ending year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741.4
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,562.0
Cash from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,515.4)
* Cash from financing activities includes the effects of foreign exchange rate fluctuations.
Required
a. Prepare the income statement, the balance sheet, and the statement of cash flows for General
Mills
for the fiscal year ended May 26, 2013.
b. Do the negative amounts for cash from investing activities and cash from financing activities
concern us? Explain.
c. Using the statements prepared for part a, compute the following ratios (for this part only, use
the
year-end balance instead of the average for assets and stockholders’ equity):
i. Profit margin
ii. Asset turnover
iii. R eturn on assets
iv. R eturn on equity
Solution
Income statement Revenue 17,774.10 COGS 11,350.20 Gross Margin 6,423.90 Expenses
4,568.70 Net Income 1,855.20 Balancesheet Assets Total Liabilties& Equity Cash 741.4 Total
liabilties 14,562.00 Non - Cash Assets 21,916.60 Owners equity 8,096.00 22,658.00 22,658.00
Cash flow Cash from Operating activities 2926 Cash from Investing activities -1,515.40 Cash

2. from Financing activities -1,140.40 Net Cash Flow 270.2 Begining Cash 471.2 Ending Cash
741.4 Financial Ratios Profit Margin 10.44% =net income/revenue Asset Turnover 0.78
=revenue/total assets Return on assets 8.19% =Net income/total asset Return on Equity 22.92%
=Net income/owners equity