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Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017 annual report as noted below, calculate the financial ratios for 2019 and 2018 indicated using the EXCEL template provided:   Gross profit percentage Return on sales Asset turnover Return on assets Return on common stockholders’ equity Current ratio Quick ratio Operating-cash-flow-to-current-liabilities ratio Accounts receivable turnover Average collection period Inventory turnover Days’ sales in inventory Debt-to-equity ratio Times-interest-earned ratio Operating-cash-flow-to-capital-expenditures ratio Earnings per share Price-earnings ratio Dividend yield Dividend payout ratio   Total assets 2017 = $21,812.6 Total stockholders’ equity 2017 = $4,327.9 Total current liabilities 2017 = $5,330.8 Accounts receivable 2017 = $1,430.1 Inventory 2017 = $1,483.6 Year-end closing stock price May 2019 = $50.93 Year-end closing stock price May 2018 = $39.37   Perform a comparative analysis of the data between the two years. Comment briefly on the changes from fiscal 2018 to 2019. Identify trends and explain the implications of each trend.

Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017 annual report as noted below, calculate the financial ratios for 2019 and 2018 indicated using the EXCEL template provided:   Gross profit percentage Return on sales Asset turnover Return on assets Return on common stockholders’ equity Current ratio Quick ratio Operating-cash-flow-to-current-liabilities ratio Accounts receivable turnover Average collection period Inventory turnover Days’ sales in inventory Debt-to-equity ratio Times-interest-earned ratio Operating-cash-flow-to-capital-expenditures ratio Earnings per share Price-earnings ratio Dividend yield Dividend payout ratio   Total assets 2017 = $21,812.6 Total stockholders’ equity 2017 = $4,327.9 Total current liabilities 2017 = $5,330.8 Accounts receivable 2017 = $1,430.1 Inventory 2017 = $1,483.6 Year-end closing stock price May 2019 = $50.93 Year-end closing stock price May 2018 = $39.37   Perform a comparative analysis of the data between the two years. Comment briefly on the changes from fiscal 2018 to 2019. Identify trends and explain the implications of each trend.

FINANCIAL ACCOUNTING
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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Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017 annual report as noted below, calculate the financial ratios for 2019 and 2018 indicated using the EXCEL template provided:

 

  1. Gross profit percentage
  2. Return on sales
  3. Asset turnover
  4. Return on assets
  5. Return on common stockholders’ equity
  6. Current ratio
  7. Quick ratio
  8. Operating-cash-flow-to-current-liabilities ratio
  9. Accounts receivable turnover
  10. Average collection period
  11. Inventory turnover
  12. Days’ sales in inventory
  13. Debt-to-equity ratio
  14. Times-interest-earned ratio
  15. Operating-cash-flow-to-capital-expenditures ratio
  16. Earnings per share
  17. Price-earnings ratio
  18. Dividend yield
  19. Dividend payout ratio

 

Total assets 2017 = $21,812.6

Total stockholders’ equity 2017 = $4,327.9

Total current liabilities 2017 = $5,330.8

Accounts receivable 2017 = $1,430.1

Inventory 2017 = $1,483.6

Year-end closing stock price May 2019 = $50.93

Year-end closing stock price May 2018 = $39.37

 

Perform a comparative analysis of the data between the two years. Comment briefly on the changes from fiscal 2018 to 2019. Identify trends and explain the implications of each trend.

 

C EYK14-5. Accounting Research Pr x O 725716_BMKLPDF_LAN_07Aug x b Using the fiscal year end 2019 an x -> O File | file:///C:/Users/18102/Downloads/FY19-General%20Mills-Annual-Report-10-K-Web-Version.pdf E Apps O Maps © Home | My Baker f (3) Facebook O New Tab O Jenzabar Financial.. 9 Successful Writing -. I Organizing an Essa. a Getting Started wit. YouTube M Gmail 725716_BMKLPDF_LAN_07Aug201918383138_002.PDF 22 / 126 131% + ITEM 6 Selected Financial Data The following table sets forth selected financial data for each of the fiscal years in the five-year period ended May 26, 2019: 国 Fiscal Year In Millions, Except Per Share Data, Percentages and Ratios 2019 (a) 2018 2017 2016 2015 (b) Operating data: Net sales 20 $ 17,630.3 $ 15,619,8 5,567.8 2$ 16,865.2 15,740.4 5,435.6 16,563.1 5,843.3 Gross margin (c) (d) Selling, general, and administrative expenses (d) Operating profit (d) Net earnings attributable to General Mills Advertising and media expense Research and development expense Average shares outstanding: Diluted 5,756.8 5,967.8 2,888.8 2,492.1 1,657.5 623.8 3,141.4 2,719.1 1,697.4 754.4 3,389.9 2,071.8 1,221.3 823,1 229,4 2,935.8 2,515.9 2,850.1 2.419.9 1,752.7 601.6 2,131.0 575.9 221.9 219.1 218.2 222.1 605.4 585.7 598.0 611.9 618.8 21 Earnings per share: Diluted 2$ 2.90 $ 3.64 $ 2.77 $ 2.77 $ 1.97 Adjusted diluted (c) (e) Operating ratios: Gross margin as a percentage of net sales (d) Selling, general, and administrative expenses as a percentage of net sales (d) Operating profit as a percentage of net $ 3.22 $ 3.11 $ 3.08 2.92 2.86 34.1% 34.5% 35.6% 35.3% 33.8% 17.4% 18.1% 18.5% 19.0% 19.2% 22 7:57 PM P Type here to search 5/7/2021 出 II
Transcribed Image Text:C EYK14-5. Accounting Research Pr x O 725716_BMKLPDF_LAN_07Aug x b Using the fiscal year end 2019 an x -> O File | file:///C:/Users/18102/Downloads/FY19-General%20Mills-Annual-Report-10-K-Web-Version.pdf E Apps O Maps © Home | My Baker f (3) Facebook O New Tab O Jenzabar Financial.. 9 Successful Writing -. I Organizing an Essa. a Getting Started wit. YouTube M Gmail 725716_BMKLPDF_LAN_07Aug201918383138_002.PDF 22 / 126 131% + ITEM 6 Selected Financial Data The following table sets forth selected financial data for each of the fiscal years in the five-year period ended May 26, 2019: 国 Fiscal Year In Millions, Except Per Share Data, Percentages and Ratios 2019 (a) 2018 2017 2016 2015 (b) Operating data: Net sales 20 $ 17,630.3 $ 15,619,8 5,567.8 2$ 16,865.2 15,740.4 5,435.6 16,563.1 5,843.3 Gross margin (c) (d) Selling, general, and administrative expenses (d) Operating profit (d) Net earnings attributable to General Mills Advertising and media expense Research and development expense Average shares outstanding: Diluted 5,756.8 5,967.8 2,888.8 2,492.1 1,657.5 623.8 3,141.4 2,719.1 1,697.4 754.4 3,389.9 2,071.8 1,221.3 823,1 229,4 2,935.8 2,515.9 2,850.1 2.419.9 1,752.7 601.6 2,131.0 575.9 221.9 219.1 218.2 222.1 605.4 585.7 598.0 611.9 618.8 21 Earnings per share: Diluted 2$ 2.90 $ 3.64 $ 2.77 $ 2.77 $ 1.97 Adjusted diluted (c) (e) Operating ratios: Gross margin as a percentage of net sales (d) Selling, general, and administrative expenses as a percentage of net sales (d) Operating profit as a percentage of net $ 3.22 $ 3.11 $ 3.08 2.92 2.86 34.1% 34.5% 35.6% 35.3% 33.8% 17.4% 18.1% 18.5% 19.0% 19.2% 22 7:57 PM P Type here to search 5/7/2021 出 II
C EYK14-5. Accounting Research Pr x O 725716_BMKLPDF_LAN_07Aug x b Using the fiscal year end 2019 an x -> O File | file:///C:/Users/18102/Downloads/FY19-General%20Mills-Annual-Report-10-K-Web-Version.pdf E Apps O Maps © Home | My Baker f (3) Facebook O New Tab 6 Jenzabar Financial. O Successful Writing -. I Organizing an Essa. a Getting Started wit. YouTube M Gmail 725716_BMKLPDF_LAN_07Aug201918383138_002.PDF 22 / 126 131% + Average shares outstanding: Diluted 605.4 585.7 598.0 611.9 618.8 Earnings per share: Diluted Adjusted diluted (c) (e) Operating ratios: Gross margin as a percentage of net sales (d) Selling, general, and administrative expenses as a percentage of net sales (d) Operating profit as a percentage of net sales (d) Adjusted operating profit as a percentage of net sales (c) (d) (e) $ 2.90 $ $ 3.64 $ 2.77 $ 2.77 1.97 国 $ 3.22 3.11 $ 3.08 $ 2.92 $ 2.86 34.1% 34.5% 35.6% 35.3% 33.8% 20 17.4% 18.1% 18.5% 19.0% 19.2% 14.9% 15.4% 16.0% 16.4% 11.8% 17.6% 15.7% 33.3% 16.9% 16.6% 16.8% Effective income tax rate Balance sheet data: 17.7% 2.7% 28.8% 31.4% Land, buildings, and equipment Total assets 3,783.3 21,832.0 2$ 3,787.2 $ 4,047.2 30,624.0 3,687.7 21,812.6 $ 3,743.6 30,111.2 21,712.3 Long-term debt, excluding current portion Total debt (c) Cash flow data: Net cash provided by operating activities (f) Capital expenditures 21 11,624.8 12,668.7 15,818.6 7,642.9 9,481.7 7,057.7 8,430.9 7,575.3 9,191.5 14,490.0 $ 2,807.0 2$ 2,841.0 $ 2,415.2 684.4 2,764.2 729,3 2,648.5 712.4 537.6 622.7 Free cash flow (c) 2,269.4 2,218.3 1,730.8 2,034.9 1,936.1 Share data: Cash dividends per common share $ 1.96 $ 1.96 $ 1.92 $ 1.78 $ 1.67 22 7:57 PM P Type here to search 5/7/2021 出 II
Transcribed Image Text:C EYK14-5. Accounting Research Pr x O 725716_BMKLPDF_LAN_07Aug x b Using the fiscal year end 2019 an x -> O File | file:///C:/Users/18102/Downloads/FY19-General%20Mills-Annual-Report-10-K-Web-Version.pdf E Apps O Maps © Home | My Baker f (3) Facebook O New Tab 6 Jenzabar Financial. O Successful Writing -. I Organizing an Essa. a Getting Started wit. YouTube M Gmail 725716_BMKLPDF_LAN_07Aug201918383138_002.PDF 22 / 126 131% + Average shares outstanding: Diluted 605.4 585.7 598.0 611.9 618.8 Earnings per share: Diluted Adjusted diluted (c) (e) Operating ratios: Gross margin as a percentage of net sales (d) Selling, general, and administrative expenses as a percentage of net sales (d) Operating profit as a percentage of net sales (d) Adjusted operating profit as a percentage of net sales (c) (d) (e) $ 2.90 $ $ 3.64 $ 2.77 $ 2.77 1.97 国 $ 3.22 3.11 $ 3.08 $ 2.92 $ 2.86 34.1% 34.5% 35.6% 35.3% 33.8% 20 17.4% 18.1% 18.5% 19.0% 19.2% 14.9% 15.4% 16.0% 16.4% 11.8% 17.6% 15.7% 33.3% 16.9% 16.6% 16.8% Effective income tax rate Balance sheet data: 17.7% 2.7% 28.8% 31.4% Land, buildings, and equipment Total assets 3,783.3 21,832.0 2$ 3,787.2 $ 4,047.2 30,624.0 3,687.7 21,812.6 $ 3,743.6 30,111.2 21,712.3 Long-term debt, excluding current portion Total debt (c) Cash flow data: Net cash provided by operating activities (f) Capital expenditures 21 11,624.8 12,668.7 15,818.6 7,642.9 9,481.7 7,057.7 8,430.9 7,575.3 9,191.5 14,490.0 $ 2,807.0 2$ 2,841.0 $ 2,415.2 684.4 2,764.2 729,3 2,648.5 712.4 537.6 622.7 Free cash flow (c) 2,269.4 2,218.3 1,730.8 2,034.9 1,936.1 Share data: Cash dividends per common share $ 1.96 $ 1.96 $ 1.92 $ 1.78 $ 1.67 22 7:57 PM P Type here to search 5/7/2021 出 II
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