General Mills: Business Analysis

6. If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends?

investors, auditors, executives of the business, etc.) an overview of the financial results and condition of the company. The major financial statements that come out of the accounting cycle are income statements, balance sheets, Statement of cash flows and Statement of retained earnings. Income statements are considered the most important of all the financial statements since it presents the operating results of an entity , e.g. revenues, expenses, and profits/losses generated during the reporting period (Bragg, 2017). Balance sheets provide reports of assets, liabilities, and equity of the entity as of the reporting date and can be considered the second most important statement because it provides information/figures about the liquidity, as well as the capitalization of a company (Bragg, 2017). Statement of cash flows exhibits the cash inflows and outflows that occur during a reporting period, which provides a useful comparison to the income statement, particularly when the amount of profit or loss reported does not reflect cash flows encountered by the businesses (Bragg, 2017). Statement of retained earnings is the least used financial statement that provides information regarding changes in equity during the reporting period and can include information such as: sale or repurchase of stock, dividend payments, and changes caused by reported profits or losses. Statements of retained earnings are often

* Taking on debt gives the company the ability to use cash for projects and short term investments.

KPMG LLP is General Mills' external auditor. The first opinion letter indicates that General Mills and subsidiaries have maintained effective internal control. The other opinion letter talks about that KPMG has examined the company's consolidated financial statements and financial statement schedule. The public accounting firm confirms that General Mills' financial statements are well-presented in all material respects and consisted with U.S. GAAP' criteria. These opinions mean that the company has followed GAAP rules and correctly reported the amount of each item associated its financial performance.

b.) The financial statements that are commonly prepared for external reporting purposes are the Balance Sheet, Income Statement, and Statement of Cash Flows. General Mills gives these statements a title of Consolidated Statements of Earnings, Consolidated Balance Sheets and Consolidated statements of Cash Flows. Consolidated means that General Mills is factoring in all of its subsidiaries into its aggregated accounting figures that are represented on these statements.

General Mills (NYSE:GIS), our company, is a global consumer foods company. We develop distinctive value-added food products and market with our unique brand names. We work continuously to improve our established products and to create new products that meet our customers’ potential needs and preferences. Our company has $14.88 billion in sales last year. Our sales has grown substantially throughout the years due in large part to our popular brand names, this however is only part of the reason that we has been so successful. We markets global brands such as Green Giant, Old El Paso, Häagen-Dazs, Yoplait, Cheerios, Betty

Financial statement measures the financial performance, liquidity and strength of the firm, it is important

The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).

This chapter of the weekly report about internal analysis gives financial analysis of the YUM Brand Corporation. The financial analysis is done about the years 2008, 2009 and 2010. The chapter describes the financial analysis, ratios, and other relevant

General Motors is known as a world class multinational company that sales a wide range of vehicles to match the customer’s lifestyle. According to their 2014 annual report, General Motors net revenue profit margin raised about $500 million to $155.9 billion (Barra, M.T., Steven, C.K.III, 2015). By analyzing General Motors Company 2014 Annual Report one can understand through assets, cash equivalents, and liabilities how the net worth improved.

Prior to the arrival of David Homer, General Mills Canada had been a successful subsidiary of the General Mills brand. Although employees at General Mills Canada have generated positive sales growth every year before his tenure, Homer notices a lack of initiative, drive, and desire to embrace fundamental changes by his employees, a sign of progress hindered by risk aversion. He notices that data is pouring into the company and employees are using this data to analyze potential opportunities for growth, yet they are reluctant to take any actions. Thus, his ultimate challenge is to integrate innovative thinking into the General Mills Canada culture, and determine what “processes and tools” to use to achieve this goal, since employees are

Financial statements are an important tool used by managers, owners, and lenders to track performance. The income statements, balance sheet, and statement of cash flows provide the detailed data necessary to evaluate the financial health of the organization.

Q8: Consolidated financial statements can be prepared when a large company takes over a small company through taking over the control of their interest.

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ

For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis: