Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicated using the EXCEL template provided:1. Gross profit percentage2. Return on sales3. Asset turnover 4. Return on assets5. Return on common stockholders’ equity6. Current ratio7. Quick ratio8. Operating-cash-flow-to-current-liabilities ratio9. Accounts receivable turnoverTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56To calculate averages use (current year balance + poor year balance) / 2) Round percentages to 1 decimal place; round other answers to 2 decimal places. The following table sets forth selected financial data for each of the fiscal years in the five-year period endedMay 26, 2019:Flscal YearIn MIlllons, Except Per Share Data,Percentages and Ratlos2019 (a)2018201720162015 (b)Operating data:Net salesGross margin (c) (d)Selling, general, and administrativeexpenses (d)Operating profit (d)Net earnings attributable to General MillsAdvertising and media expenseResearch and development expenseAverage shares outstanding:DilutedEarnings per share:DilutedAdjusted diluted (c) (c)Operating ratlos:Gross margin as a percentage of netsales (d)Selling, general, and administrativeexpenses as a percentage of netsales (d)Operating profit as a percentage of netsales (d)Adjusted operating profit as a percentageof net sales (c) (d) (e)Effective income tax rateS 16,865.25,756.8S 15,740.4 S 15,619.85,435.6S 16,563.1 $ 17,630.35,843.35,567.85,967.82,935.82,515.91,752.7601.6221.92,850.12,419.92,131.0575.9219.12,888.82,492.11,657.5623.8218.23,141.42,719.11,697.4754.4222.13,389.92,071.81,221.3823.1229.4605.4585.7598.0611.9618.8|S 2.773.64 S3.11 S1.972.862.902.773.223.08 S 2.9234.1%34.5%35.6%35.3%33.8%17.4%18.1%18.5%19.0%19.2%14.9%15.4%16.0%16.4%11.8%16.9%17.7%16.6%2.7%17.6%28.8%16.8%31.4%15.7%33.3%Balance sheet data:Land, buildings, and equipmentTotal assetsLong-term debt, excluding currentportionTotal debt (c)3,787.230,111.24,047.230,624.03,687.721,812.63.743.621,712.33,783.321,832.011,624.814,490.012,668.715,818.67.642.99,481.77,057.78,430.97,575.39,191.5Cash flow data:Net cash provided by operatingactivities (f)Capital expenditures2,807.0537.62,841.0622.72,415.2684.4S.2,764.2729.32,648.5712.4Free cash flow (c)Share data:Cash dividends per common share2,269.42,218.31,730.82,034.91,936.11.961.96S 1.921.781.67(a) In fiscal 2018, we acquired Blue Buffalo. Please see Note 3 to the Consolidated Financial Statements in Item 8 of this report.(b) Fiscal 2015 was a 53-week year; all other fiscal years were 52 weeks.(c) Please see "Glossary" in Item 8 of this report for definition.(d) In the first quarter of fiscal 2019, we retrospectively adopted new accounting requirements related to the presentation of net periodic definedbenefit pension expense, net periodic postretirement benefit expense, and net periodic postemployment benefit expense. Please see Note 2 tothe Consolidated Financial Statements in Item 8 of this report.(e) Please see "Non-GAAP Measures" in Item 7 of this report for our discussion of this measure not defined by generally accepted accounting%24%24

Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Answered: Using the fiscal year end 2020 annual…

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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Question

Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the
2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 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

Total assets 2020 = $30,806.7
Total stockholders’ equity 2020 = $8,349.5
Total current liabilities 2020 = $7,491.5
Accounts receivable 2020 = $1,615.1
Inventory 2020 = $1,426.3
Year-end closing stock price May 2020 = $58.80
Year-end closing stock price May 2019 = $53.56

To calculate averages use (current year balance + poor year balance) / 2) Round percentages to 1 decimal place; round other answers to 2 decimal places.

The following table sets forth selected financial data for each of the fiscal years in the five-year period ended
May 26, 2019:
Flscal Year
In MIlllons, Except Per Share Data,
Percentages and Ratlos
2019 (a)
2018
2017
2016
2015 (b)
Operating data:
Net sales
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
Earnings per share:
Diluted
Adjusted diluted (c) (c)
Operating ratlos:
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)
Effective income tax rate
S 16,865.2
5,756.8
S 15,740.4 S 15,619.8
5,435.6
S 16,563.1 $ 17,630.3
5,843.3
5,567.8
5,967.8
2,935.8
2,515.9
1,752.7
601.6
221.9
2,850.1
2,419.9
2,131.0
575.9
219.1
2,888.8
2,492.1
1,657.5
623.8
218.2
3,141.4
2,719.1
1,697.4
754.4
222.1
3,389.9
2,071.8
1,221.3
823.1
229.4
605.4
585.7
598.0
611.9
618.8
|S 2.77
3.64 S
3.11 S
1.97
2.86
2.90
2.77
3.22
3.08 S 2.92
34.1%
34.5%
35.6%
35.3%
33.8%
17.4%
18.1%
18.5%
19.0%
19.2%
14.9%
15.4%
16.0%
16.4%
11.8%
16.9%
17.7%
16.6%
2.7%
17.6%
28.8%
16.8%
31.4%
15.7%
33.3%
Balance sheet data:
Land, buildings, and equipment
Total assets
Long-term debt, excluding current
portion
Total debt (c)
3,787.2
30,111.2
4,047.2
30,624.0
3,687.7
21,812.6
3.743.6
21,712.3
3,783.3
21,832.0
11,624.8
14,490.0
12,668.7
15,818.6
7.642.9
9,481.7
7,057.7
8,430.9
7,575.3
9,191.5
Cash flow data:
Net cash provided by operating
activities (f)
Capital expenditures
2,807.0
537.6
2,841.0
622.7
2,415.2
684.4
S.
2,764.2
729.3
2,648.5
712.4
Free cash flow (c)
Share data:
Cash dividends per common share
2,269.4
2,218.3
1,730.8
2,034.9
1,936.1
1.96
1.96
S 1.92
1.78
1.67
(a) In fiscal 2018, we acquired Blue Buffalo. Please see Note 3 to the Consolidated Financial Statements in Item 8 of this report.
(b) Fiscal 2015 was a 53-week year; all other fiscal years were 52 weeks.
(c) Please see "Glossary" in Item 8 of this report for definition.
(d) In the first quarter of fiscal 2019, we retrospectively adopted new accounting requirements related to the presentation of net periodic defined
benefit pension expense, net periodic postretirement benefit expense, and net periodic postemployment benefit expense. Please see Note 2 to
the Consolidated Financial Statements in Item 8 of this report.
(e) Please see "Non-GAAP Measures" in Item 7 of this report for our discussion of this measure not defined by generally accepted accounting
%24
%24

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