(Mllions, except per share amounts Summary of Operations Net sales . . Eamings b
ID: 2519249 • Letter: #
Question
(Mllions, except per share amounts Summary of Operations Net sales . . Eamings before interest and taxes 1,073955 1,049 1.100 1.166 726 680 724 749 791 81 (231) 40 33 53 807 449 764 802 844 844 Eamings before taxes Eamings from continuing operations Eamings (loss) from discontinued opcrations . Net earnungs Net earnings attributable to Campbell Soup Company .....S1S Financial Position Plant assets - net Total assets Total debt Total equity Per Share Data 458 774 05 2.318 $2.260 $2.127 $2.103 $2.051 8.113 8.323 6,330 6,862 6.276 4,015 4453 2.790 3.084 2.780 1,603 1,210 898 1096 929 Eamings from continuing operations attributable to Campbell Soup Company-basic S 2.35 219 $ 2.30 $ 228 229 Earmings from continming operations attributable to Campbell Soup Company-assuming dilution Net eamings attributable to Casmpbell Soup Company basic Net eamings attributable to Campbell Soup Compay- assusing Dividends declared Other Statisties Capital expenditure 233 217 229 226 227 2.61 146 243 244 244 2.59 144 241 4 1.248 116 16 1145 1075 s 347 S 3 F5 F9 F10 F11Explanation / Answer
Answer:
Total debt in 2010
$2780 million
Total debt in 2014
$4015 million
Thus, the change in total debt (4015 - 2780)
$1235 million
(e): In the notes to accounts there is no information about the amount of finished inventory for the year 2014. However, the total assets of the company for the financial year ending in 2014 is $8,113 million and plant assets are $2,318 million thus, the finished product inventory can be assumed to be (8113 – 2318) = $6,495 million.
(f):
Net earnings before taxes for 2014
$1073 Million
Less: Net earnings
$807 million
Tax
$266 million
Effective rate of income tax (266 x 100 / 1073)
24.79%
(g): Net sales for 2014 is $8,268 million. No information about segment sales have been provided in notes to accounts.
(h):
Total equity
$1603 million
Number of shares
314 million
Thus, market price (1603 / 314)
5.11
Hence, the range would be $5.00 to $5.20
Total debt in 2010
$2780 million
Total debt in 2014
$4015 million
Thus, the change in total debt (4015 - 2780)
$1235 million
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