ACCY500 Accounting Measurement, Reporting and Control:
Module 1 Cases
Question 1: General Mills - Finding information on an
Annual Report
Please download General Mills 2023 annual report from the link below and answer the
following questions.
General Mills 2023: [Link]
[Link]
1. Where can you find information regarding the following items?
Business (Company Overview)…
Management’s Discussion and Analysis of Financial Condition…
Financial Statements and Supplementary Data…
2. What are General Mills’ three largest assets?
1. ……….
2. ……….
3. ……….
3. Would you expect these to be General Mills main assets given the nature of its business?
4. What are the two largest liabilities?
1. ……….
2. ……….
5. What types of obligations are represented by these liabilities?
6. What is the value of shareholders’ equity?
7. What is the value of net sales for fiscal year 2023?
8. What was the net income (or “net earnings”) for fiscal year 2023?
9. What does the net income represent?
10. Where can you learn how the company accounts for inventories?
11. What are the main components of General Mills inventories as of May 28, 2023? Please
quantify.
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Question 2: Classifying assets, liabilities and shareholders’ equity
Suppose Dick’s Sporting Goods Inc. uses the following accounts on their balance sheet.
Classify each of these accounts as either a(n): Asset (A), Liability (L), or Shareholders’
Equity (E):
a. Retained Earnings
b. Income taxes receivable
c. Other long-term debt and leasing obligations
d. Inventories, net
e. Prepaid expenses
f. Accounts Payable
g. Additional Paid-in Capital
h. Income taxes payable
i. Accounts receivable, net
j. Common Stock
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Question 3: The IMHA Coffee Company - Classifying assets,
liabilities, and shareholders’ equity
How would you classify each of the items below?
Share-
Current Fixed Current Long-term
holders’
Assets Assets Liabilities Liabilities
Equity
(a) An agreement to hire
one person to work as a
server
(b) A roasting machine used
to roast coffee beans
(c) Utilities for the current
month payable next
month
(d) $4,000 in cash on hand
(e) 1,000 shares of common
stock
(f) 50,000 kilograms of
coffee beans
(g) An invoice from the
main supplier of coffee
beans
(h) A bank note, due in
three years