Solution:
General Mills, Inc., Income statement for year ended May 25, 2003
Particulars Millions $
Revenue $10,506
Less Cost of goods sold - 6,109
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Gross profit 4,397
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Less operating expenses - 3,480
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917
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Balance sheet May 25, 2003
Assets Million $ Liabilities Million $
Cash 703 Total Liabilities 13,752
Non cash 17,524 Stockholders' equity 4,475
Total assets 18,227 Total Liabilities & equity 18,227
Statement for cash flows for year ended May 25, 2003
Particulars Million $
Cash from operating activities 1,631
Cash from financing activities - 885
Cash from investing activities - 1,018
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Net change in cash -272
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Cash, beginning year 975
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703
A negative amount for cash from financing activities reflects the reduction of long term debt
Profit margin = ( Net income / Revenue ) * 100
= ( 917 / 10,506 ) * 100
= 8.72%
Asset turnover = Revenue / total assets
= 10,506 / 18, 227
= 0.57
Return on assets =( Net income / Total assets ) * 100
= ( 917 / 18, 227 ) *100
= 5.03%
Return of equity = ( Net income / Total shareholder equity )*100
= ( 917 / 4,475 ) *100
= 20.49%
