General MillsGeneral Mills case study
A) General Mills is a global food company. The main products of the company are baking products, frozen products, ready-to-eat cereals, snacks, etc. The company sells its products to supermarkets, groceries, and wholesalers. The company makes money by introducing new products in the market.
B) The financial statements that are commonly prepared for external reporting purposes are balance sheet, statement of cash flow, statement of shareholder’s equity and income statement. The title General Mills give these statements are General Mills inc and Subsidiaries consolidated statement of earnings i.e. Income statement and consolidated balance sheets, consolidated statement of cash flows, and consolidated shareholder’s equity. Consolidated means combined financial statements of a parent company and its subsidiaries. Company’s financial statements give an aggregate view at the financial position of a company. Parent company and its subsidiaries help to determine position of an entire group as opposed to one company’s standalone position.
C) In US, publicly traded companies must file financial statements with the SEC – Securities Exchange Commission. The 2 main compulsory filings are:-
Form 10K – the audited annual report that includes the four financial statements with explanation and analysis of financial results.
Form 10Q – the unaudited quarterly report that includes summary version of the 4 financial statements and disclosures.
D) Management is responsible for financial statements and auditors conduct an audit of financial data and consult with management over any deficiencies uncovered.
Potential users of General Mills are as follows:-
Managers and employees – Management needs financial information to make business decisions, to evaluate future earnings potential, profitability and prospects of their companies. Employees use information for use in compensation and bonuses, pension and benefit plans whose...