General Mills: Business Analysis

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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. The company makes money through the investments they make in purchases, which is the source of cash and cash equivalents. Through the land building and equipment, which the business lease or rent to other business or the potential customers Investment in joint ventures for instance in other companies The company also invest in variable interest entities being the main beneficiary of the GM capital. Balance Sheet. The business call it consolidate balance sheet. Profit and loss statement: The business calls it consolidated statements of earnings. Statement of cash flows. The business calls it consolidated cash flows. Consolidated financial statements are the statements gives a combination of the accounts of a business and all the subsidiaries during a financial period. Financial statement are often prepared after a fiscal year specifically once in that trading period. The management of the company is responsible for the preparation of the financial statements. Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;

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