Presented Below Is an Excerpt ($ in Millions) from the 2007

question 37

Essay

Presented below is an excerpt ($ in millions) from the 2007 annual report to shareholders of General Mills Inc. Explain how the shareholder should interpret the difference between the net income and total comprehensive income for General Mills in 2007.

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Definitions:

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Accounts Receivable

Accounts receivable are amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Inventories

Items such as goods or merchandise held by a company, intended for sale or production.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing its total liabilities by its total assets.