Case Study-General Mills Inc.
Genera2013
Case Study 1: General Mills Inc.
Understanding Financial Statements
Group 5
Summary
This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works.
Case study encouraged us to closely probe into each statements and line items and make us understand it. Few highlighted learning’s are preparation of common-size financial statements, understanding of footnotes, eye opening fact about use of estimates in preparation of financial statement, etc. Overall it was good exercise accomplished with great team efforts. Concepts
a.
General Mills is one of the largest food companies in the world. The company has 3 segments U.S. Retail, International, and Bakeries and Food service. They produce and sell pre-packaged food, including cereal, snack bar, chex mix, Pillsbury bakery product to the general market. Also, they provide those supplies to cafeteria, vending machine and convenient stores (company, 2012). Company makes money by selling products to wholesale and retail market and also through joint ventures. Industry is very competitive and profit margin is very thin. To keep itself viable, company relies heavily on new product development and aggressive marketing.
b.
The financial statements commonly prepared for external reporting purposes which are included in the company’s 10-K include the following: 1) statements of earnings, 2) balance sheets, 3) stockholders equity and comprehensive income and cash flows.
General Mills refer to each financial statement as such: 1) General Mills, Inc. And Subsidiaries Consolidated Statements of Earnings, 2) General Mills, Inc. And Subsidiaries Consolidated Balance Sheets, 3) General Mills, Inc. And Subsidiaries Consolidated Statements of Stockholders’ Equity and Comprehensive Income
The term “consolidated” means that General Mills financial statement includes that of
Case Study 1: General Mills Inc.
Understanding Financial Statements
Group 5
Summary
This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works.
Case study encouraged us to closely probe into each statements and line items and make us understand it. Few highlighted learning’s are preparation of common-size financial statements, understanding of footnotes, eye opening fact about use of estimates in preparation of financial statement, etc. Overall it was good exercise accomplished with great team efforts. Concepts
a.
General Mills is one of the largest food companies in the world. The company has 3 segments U.S. Retail, International, and Bakeries and Food service. They produce and sell pre-packaged food, including cereal, snack bar, chex mix, Pillsbury bakery product to the general market. Also, they provide those supplies to cafeteria, vending machine and convenient stores (company, 2012). Company makes money by selling products to wholesale and retail market and also through joint ventures. Industry is very competitive and profit margin is very thin. To keep itself viable, company relies heavily on new product development and aggressive marketing.
b.
The financial statements commonly prepared for external reporting purposes which are included in the company’s 10-K include the following: 1) statements of earnings, 2) balance sheets, 3) stockholders equity and comprehensive income and cash flows.
General Mills refer to each financial statement as such: 1) General Mills, Inc. And Subsidiaries Consolidated Statements of Earnings, 2) General Mills, Inc. And Subsidiaries Consolidated Balance Sheets, 3) General Mills, Inc. And Subsidiaries Consolidated Statements of Stockholders’ Equity and Comprehensive Income
The term “consolidated” means that General Mills financial statement includes that of