CAMPBELL SOUP COMPANYConsolidated Statements of EarninE(millioas, escept per share amounts)21720162015Net sales7,390 S7,961 S8,082Costs and expensesCost of products sold.Marketing and selling expenses4,8315,1815,300S17893884Administrative expenses488641601Research and development expenses.98124117Other expenses / (mcome).23813124Restructuring charges.1831102Total costs and expenses7,0286,4907,001Earnings before interest and tases1,4009601,054Interest expense..112115108Interest income3Earmings before taxes1.293849949Taxes on earmings.406286283Net earnings.Less: Net earmings (loss) attributable to noncontrolling terestsNet earnings attributable to Campbell Soup CompanyS87563666S87 S563 S606Per Share-BasicNet earnings attributable to Campbell Soup Company2.91 $182 $2.13Weighted average shares outstanding -basicPer Share- Assuming DilutionNet earnings attributable to Campbell Soup CompanyWeighted average shares outstanding-assuming dilutionSee accompanying Notes to Comolidated Financial Statements.3053093122.89 S181 S213307311313CAMPBELL SOUP COMPANYCenselidated Balance Sheets(millions, escept per share amounts)Juh 0.July 31,Current assetsCash and cash equvalents319 S296Accounts receivable, net605626Inventories902940Other current assets7446Total current assets.1,9001,908Plant assets, net of depreciation2,4542,407Goodwill.2.1152,263Other intangible assets, net of amortization1.1181,152Other assets (S51 as of 2017 and $34 as of 2016 attributable to variable interest entity)Tetal assets.Current liabalitiesShort-term borrowings..Payable to suppliers and others1391077,726 S7,8371,037 S1,219666610Accrued liabilities561604Dividends payable111100Асспed ncome taxes2022Total current liabilities.2.3952,555Long-term debt.Deferred taxes.2,4992,314490396Other liabilities6971.039Tetal liabilities.6,0816.304Commitments and contingenciesCampbell Soup Company shareholders' equityPreferred stock; authorized 40 shares, none issuedCapital stock, S.0375 par value, audorized 560 shares, isued 323 shares1212Additional paid-in capital.359354Eamings retained in the business.Capital stock in treasury, at cost.2,3851,927(1.066)(53)1637(664)Accumulated other comprehensive lovsTotal Campbell Soup Company shareholders' equityNoncontrolling interestsTetal equity.....Total liabilities and equity(104)1,5251,6451,5337,726 S7.837See accompanying Notes to Consolidated Financial Statements Answer the following questions:Required:a-1. Find the discussion of Property, Plant, and Equipment and depreciation methods used by Campbell's. Use data from the CampbellSoup Company annual reportO Straight-line methodO Double declining methodO Written down value methoda-2. Why the particular method is used for the purpose described.Straight-line depreciation is used for financial reporting purposes because depreciation expense will be lower than under anyof the accelerated depreciation methods.O Straight-line depreciation is used for financial reporting purposes because depreciation expense will be higher than under anyof the accelerated depreciation methods.a-3. What method do you think the company uses for income tax purposes?O Accelerated depreciation using the MACRS rates is probably used for tax purposes to minimize taxes payable.O Straight line Method using the MACRS rates is probably used for tax purposes to minimize taxes payable.Written down value Method using the MACRS rates is probably used for tax purposes to minimize taxes payable.

Business organizations are required to charge the depreciation expense on their assets so as to…

Answer the following questions: Required: a-1. Find the discussion of Property, Plant, and Equipment and depreciation methods used by Campbell's. Use data from the Campbell Soup Company annual report O Straight-line method O Double declining method O Written down value method a-2. Why the particular method is used for the purpose described. O Straight-line depreciation is used for financial reporting purposes because depreciation expense will be lower than under any of the accelerated depreciation methods. O Straight-line depreciation is used for financial reporting purposes because depreciation expense will be higher than under any of the accelerated depreciation methods. a-3. What method do you think the company uses for income tax purposes? O Accelerated depreciation using the MACRS rates is probably used for tax purposes to minimize taxes payable. O Straight line Method using the MACRS rates is probably used for tax purposes to minimize taxes payable. O Written down value Method using the MACRS rates is probably used for tax purposes to minimize taxes payable.

Answer the following questions: Required: a-1. Find the discussion of Property, Plant, and Equipment and depreciation methods used by Campbell's. Use data from the Campbell Soup Company annual report O Straight-line method O Double declining method O Written down value method a-2. Why the particular method is used for the purpose described. O Straight-line depreciation is used for financial reporting purposes because depreciation expense will be lower than under any of the accelerated depreciation methods. O Straight-line depreciation is used for financial reporting purposes because depreciation expense will be higher than under any of the accelerated depreciation methods. a-3. What method do you think the company uses for income tax purposes? O Accelerated depreciation using the MACRS rates is probably used for tax purposes to minimize taxes payable. O Straight line Method using the MACRS rates is probably used for tax purposes to minimize taxes payable. O Written down value Method using the MACRS rates is probably used for tax purposes to minimize taxes payable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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