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
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Boards of directors use financial statement to review and supervise the performance of management. Employees, of course, are potential users of financial statements as well. Employees can also be investors, so they need financial reports of the company to decide if it would be worthwhile to invest in the company. Also, companies pay bonuses, promote, and demote employees sometimes based on the company 's net income, which is reported on the income statement. (Users of Financial Statements, ref)
e.
General Mills Inc. selected the independent registered public accounting firm KPMG LLP to conduct an external audit. The first letter from KPMG discusses their review of General Mills Inc. management report on the internal controls over financial reporting as of May 28, 2006. The general responsibilities of General Mills internal controls were listed, as well as the duties and the ethical standards external auditors (KPMG) are held to. The audit reviewed the processes involved with reporting accurate financial information, in addition to verifying that all information was prepared in accordance with the generally accepted accounting principles. The second letter from KPMG discusses the audit report on the consolidated financial statements and related financial statement schedule. In the same way as the first letter, KPMG briefly reiterated the responsibility of the
1. How has technology been applied to the food production process? Give/describe at least 3 examples.
Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences
When you’re looking at the income statement, you can get information about profitability for a particular period. This is also called the profit and loss statement. The income statement is composed of both income and expenses. This statement can be used to deduct expenses from income and report either a net profit or net loss for that period. This statement will deduct all expenses from income and then report your net profit or net loss for that period. This will allow the business owner to determine if the business is bringing in a good amount of revenue to make a profit. The cash flow statement shows the movement in cash and balance over period. The cash flow can vary depending on the operating activities, investing and financing activities. This statement provides one business owner with insight to the company’s liquidity which is vital to the growth of the business. Reinvesting in business is very important, looking at the statement of retained earnings will tell a business owner how much were reinvested in the company. After profitable period, every big business has to give some of its profits to stockholders, and keep the rest amount as retained earnings. Out of all statements, retaining statement is important to companies that sells stocks to the public. This statement can also provide you with assets and liabilities information. These informations can be used to assess the financial health of your business. The results of a balance sheet will help the business owners to show the risk of liquidity and credit. Looking at these information you can measure trends and relationships to show where in the areas you can improve. These can also be compared to similar companies to show how the business measures up to leading competitors (Ali, 2010). In summary, the financial statements can provide a business owner
Kroger would like to be included in the ACD for Anchorage. Which is currently in their Kroger-TeamCo and Kroger – TeamCo STEP portfolio. A little background on the Kroger/TeamCo relationship: Kroger, recently submitted a full redemption request to TeamCo (TeamCo is a FoF and the majority of their business is with Kroger). As a result, TeamCo has started the liquidation process and will no longer exist as of January 2018. However, the anchorage position in the TeamCo portfolios have always been in Kroger’s name, so there will not be a need for a transfer of ownership or beneficial ownership. Kroger is still needs to figure out if they will redeem, maintain or add to the position. In the meantime, they would like to be included to
After Our first meeting with the client took place on April 28, 2017 at 3:00 pm at the Women's Business Center located at 1003 E Cooley Dr #109. We scheduled Our next meeting at the same location on May 26,2017. This gave us plenty of time to conduct research need to offer an alternative to Trader Joe’s.
KPMG LLP is General Mills' external auditor. The first opinion letter indicates that General Mills and subsidiaries have maintained effective internal control. The other opinion letter talks about that KPMG has examined the company's consolidated financial statements and financial statement schedule. The public accounting firm confirms that General Mills' financial statements are well-presented in all material respects and consisted with U.S. GAAP' criteria. These opinions mean that the company has followed GAAP rules and correctly reported the amount of each item associated its financial performance.
According to the financial report given, General Mills is an insolvent business. This is because even after making sum purchases and general expenses; it is still able to settle for them through its everyday operation. The various sources of money are also evidenced from the financial report.
Mondelez International had strong market share positions in 2014, and due to the strength of its market share, it retained the top spot on the global market positioning, largely due to Mondelez having a strong number one market share in the Asia-Pacific region, Middle East/Africa region and European region. Mondelez only lost the top spot in Latin America in 2014. The company's lowest market share came in North America, coming in at number five. Who were the competitors one might ask that stuck it out until the end and managed to snatch these top spots from Mondelez?
Financial statements are a very useful tool for individuals interested in the organization. Investors use the information to determine if it a wise decision to put their money into the organization. Investors need to determine if the organization has been successful and profitable and will continue to be successful and profitable. Creditors use the financial statements to determine the amount of credit that should be advanced to the organization. Employees generally do not look at the financial statements, but if a new executive was thinking of joining the organization, he or she may want to see the potential of the organization to make sure the investors are becoming a part of a successful organization. Management uses the financial statements on a monthly basis to determine which areas of the organization are profitable and which areas of the organization that needs to be discontinued or restructure to become more profitable.
In year 1965, PepsiCo Inc. is founded by Donald M. Kendall and Herman Lay. PepsiCo Inc. was merged by Pepsi-Cola and Frito-Lay in 1965. PepsiCo is an American multination industry that selling food and beverage. PepsiCo Inc. is the second-largest organisation that produces food and beverage in the world.
Golden Valley Foods, Inc. is a 127-year-old company that prepares packages and sells canned and frozen foods which include fruits, vegetables, pickles and condiments. Golden Valley has more than 30 processing plants in operations and annual sales of approximately $650 million. Much of Golden Valley’s management staff comes from their parent company with the previous president saying “The influence of our old parent company is still with us. As long as new products look like they will increase the company’s sales volume, they are introduced. Traditionally, there has been little, if any attention paid to
Think of Hershey Food Corporation and chocolate comes immediately to mind. Hershey is the leading manufacturer of chocolate in North America but that is not all what Hershey is all about.
Enterprise recourse planning (ERP) is a business software that is a suite of applications intended to organize the business processes starting with planning to the point of shipping and payment. ERP operates in real time providing a shared database that supports the business process. It follows a consistent manner of tracking all aspects of the business across all functions and departments. offering so many levels for different management needs because it has the ability to customize the information as needed. This implementation paper will focus on HERSHEY FOODS CORPORATION by investigating and highlighting the reasons behind the catastrophe that Hershey foods corporation faced when implemented the ERP.
General Mills, as one of the Big Three companies that focused on diversification of consumer goods on cereal division, restaurant chains and packaged consumer foods. In 1994, the cereal industry was profitable and had been one of the most concentrated industries overall historically, and the big Three company had a dominant position in this industry. However, the problem was although the high profitability attracted fewer entry company due to the high entry barrier restrained by joint monopoly of the Big Three, they were facing the threat of private label companies which grew fast in market share by sales and volume. Therefore, what is General Mills strategy to increase revenue while dealing with the threat of private labels. This is a critical issue because General Mills need measure the trade-offs among strategies, and this determines whether General Mills would still be one of the top players in terms of market shares in the industry.
This article initiates with the introduction on what is audit planning. It basically addresses the audit plan strategy of K & S Corporation limited’s Financial Statements. Being an external auditor of the company, key factors to be considered in auditing the financials of the subject company have been discussed in the article. The most significant accounts at risk being materially misstated have been critically examined citing the possible risks associated with such accounts. Last but not the least, the article concludes with recommendations with respect to audit assessment plan of the company. Hence, this article seeks to act as a ready reckoner guide for an audit manager in audit planning of K & S Corporation Limited.