General Mills Accounting Case StudyFinancial Accounting Case Study Module 1: A. General Mills Consolidated Income Statement: 1. The recorded sales amount of nearly 8 billion of dollars is not the actual amount of cash raised. The amount of $8 billion includes cash and credit sales.2. Sales increased every year from 2000 to 2002. The difference between the year 2000 and 2001 was an increase of 5.35% (5,450-5,173/5,173 = 0.0535). The difference between the year 2001 and 2002 was an increase of 45.85% (7,949-5,450/5,450 = 0.4585).3. General Mills' major spending for 2000, 2001, and 2002 was the same; every year over 50% of revenues are allocated to the cost of goods sold. Sales in 2002 were the largest, about 7% more than the previous two years. 2000: (2,698/5,173) = 0.522 = 52.2% 2001: (2,841/5,450 = 0.521 = 52.1% 2002: (4,767/7,949) = 0.599 = 59.9% 4. Net profit: 2000: 614 million of dollars 2001: 665 million dollars 2002: 458 million dollars Comparing the data on the net profit of the last three years, we note that between 2000 and 2001 the net profit increased by 51 million dollars, but between 2001 and 2002, net income decreased by $207 million.5 A company's stock price is usually affected by the amount of net income because when finding the stock price, you need to divide the number of shares by the net income. So, the higher the net income, the lower the stock price, which is what buyers are looking for (it means a better profit appears as an expense on the income statement because dividends are not an expense but are a financial asset reported in the statement of equity; They are payments that are made only to the owners of the company.B. General Mills Consolidated Financial Statements: 7. A company has assets such that it has a headquarters and equipment to operate/create a business. Resources are resources controlled by a company. Without assets it is not possible to produce and/or manage a company. The purpose of resources is to track expenses, what a company has, such as equipment, inventory, cash, etc., and create value for the company.8. The total amount of assets at the end of 2002 amounted to $16,540 million.9. Comparing assets from the beginning of 2002 to the end, we found the percentage increase in assets was 224.