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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
- Calculate
ROI for 2017. - Calculate ROE for 2017.
- Calculate
working capital at July 30, 2017, and July 31, 2016. - Calculate
current ratio at July 30, 2017, and July 31, 2016. - Calculate Acid-test ratio at July 30, 2017, and July 31, 2016.

Transcribed Image Text:CAMPBELL SOUP COMPANY
Consolidated Balance Sheets
(millions, except per share amounts)
July 30,
2017
July 31,
2016
- Current assets
Cash and cash equivalents
319
296
Accounts receivable, net
605
626
Inventories
902
940
Other current assets
74
46
Total current assets.
1,900
1,908
Plant assets, net of depreciation
2,454
2,407
Goodwill.
2,115
2,263
Other intangible assets, net of amortization
1,118
1,152
Other assets ($51 as of 2017 and $34 as of 2016 attributable to variable interest entity)
Total assets. .
Current liabilities
Short-term borrowings...
Payable to suppliers and others
139
107
7,726 S
7,837
1,037 S
1,219
666
610
Accrued liabilities
561
604
Dividends payable
111
100
Accrued income taxes
20
22
Total current liabilities.
2,395
2,555
Long-term debt.
Deferred taxes.
2,499
2,314
490
396
Other liabilities.
Total liabilities. .
Commitments and contingencies
697
1,039
6,081
6,304
Campbell Soup Company shareholders' equity
Preferred stock; authorized 40 shares; none issued .
Capital stock, S.0375 par value; authorized 560 shares; issued 323 shares.
12
12
Additional paid-in capital. .
359
354
Earnings retained in the business.
Capital stock in treasury,
2,385
1,927
(1,066)
(664)
Accumulated other comprehensive loss..
(53)
(104)
Total Campbell Soup Company shareholders' equity.
1,637
1,525
Noncontrolling interests .
Total equity
Total liabilities and equity
8
8
1,645
1,533
7,726
7,837
See accompanying Notes to Consolidated Financial Statements.

Transcribed Image Text:Financial Highlights
(dollars in millions, except per share amounts)
2017
2016
=782
SY4
Results of Operations
Net Sales
24
7,890
24
7,961
Gross Profit
%24
24
2,780
3,059
38.8%
%24
Percent of Sales
34.9%
Earnings before interest and taxes
Net earnings attributable to Campbell Soup Company
Per share – diluted
24
2$
24
1,400
960
24
%24
887
563
2.89
1.81
Other Information
1,491
24
1.248
24
2$
Net cash provided by operating activities
Capital expenditures
Dividends per share
1,291
%24
24
338
341
1.40
24
In 2017, Net earnings attributable to Campbell Soup Company included the following: a restructuring charge, related costs and administrative expenses of
$37 ($0.12 per share) associated with restructuring and cost savings initiatives; gains of $116 ($0.38 per share) associated with mark-to-market adjustments for
defined benefit pension and postretirement plans; impairment charges of $180 ($0.59 per share) related to the intangible assets of the Bolthouse Farms carrot
and carrot ingredients reporting unit and the Garden Fresh Gourmet reporting unit; and a tax benefit and reduction to interest expense of $56 ($0.18 per
share) primarily associated with the sale of intercompany notes receivable to a financial institution.
WEBL
upd
In 2016, Net earnings attributable to Campbell Soup Company included the following: a restructuring charge and administrative expenses of $49 ($0.16 per
share) associated with restructuring and cost savings initiatives; losses of $200 ($0.64 per share) associated with mark-to-market adjustments for defined
benefit pension and postretirement plans; an impairment charge of $127 ($0.41 per share) related to the intangible assets of the Bolthouse Farms carrot and
carrot ingredients reporting unit; and a gain of $25 ($0.08 per share) associated with a settlement of a claim related to the Kelsen acquisition.
See below for a reconciliation of the impact of these items on reported results.
Reconciliation of GAAP and Non-GAAP Financial Measures
en R
-12.
The following information is provided to reconcile certain non-GAAP financial measures disclosed in the Letter to Shareholders to reported sales and earnings
results. These non-GAAP financial measures are measures of performance not defined by accounting principles generally accepted in the United States and
should be considered in addition to, not in lieu of, GAAP reported measures. We believe that presenting certain non-GAAP financial measures facilitates
comparison of our historical operating results and trends in our underlying operating results, and provides transparency on how we evaluate our business. For
instance, we believe that organic net sales, which exclude the impact of currency, are a better indicator of our ongoing business performance. We also believe
that the financial information excluding certain transactions not considered to be part of the ongoing business improves the comparability of year-to-year earnings
results. Consequently, we believe that investors may be able to better understand our earnings results if these transactions are excluded from the results.
Recc
(dollars in millions)
2017
2016
% Change
...PI
Net Sales
$ 7,890
$7,961
-1%
Volume and Mix
-1%
Price and Sales Allowances
0%
Promotional Spending
-1%
Organic Growth
-1%
Currency
0%
otal
-1%
prdi
M.m
The sum of the individual amounts does not add due to rounding.
2017
2016
Earnings % Change EPS % Change
Earnings
Impact
Diluted
EPS
Impact
Earnings
Impact
Diluted
EPS
Impact
2017/2016
(dollars in millions, except per share amounts)
Net earnings attributable to
Campbell Soup Company, as reported
Restructuring charges, implementation costs
2017/2016
-cor
$ 887
$ 2.89
$563
$1.81
РМ.
and other related costs
37
0.12
49
0.16
Pension and postretirement benefit
mark-to-market adjustments
(116)
(0.38)
200
0.64
Impairment charges
180
0.59
127
0.41
Sale of notes
(56)
(0.18)
Claim settlement
(25)
(0.08)
Report Adjusted Net earnings attributable
to Campbell Soup Company
$ 932
$ 3.04
$914
$2.94
2%
3%
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