Stage 3 of the Project Reflection Paper FINC 330 University of Maryland University College ConAgra Brands Inc. is a company that deals with the manufacture of food. Like any other company, it has its financial report. The reports are not constant every year; they keep on changing each year. This is as a result of various reasons, which may cause an increase or a decrease in the financial income or expenditure. The net sales in the three years are almost constant apart from slight deviations. The cost of goods sold has shown an increment from 2014 to 2015, but in 2016, there was a decline. Regarding selling, general and administrative expenses in 2014 were high, in 2015 it decreased, but in 2016 it rose by 6%.interest expenses remained the same throughout the three years at 3%.  Additionally, asset amounts for the company have also stayed roughly the same over the past few years. On the other hand, the liabilities have decreased from 12,827.8 in 2015 to 9,595.8 in 2016. That is a decrease of 3,232 in just one year. Total assets also decreased from 2015 to 2016 with a balance starting at 17,437.8 and ending with a balance of 13,390.6. Equity, along with most other aspects of the company, has stayed within close range from year to year with a balance of 4,610 in 2015 and a balance of 3,794.8 in 2016. From the financial statistics we have for the net income, income statement, balance sheet among others, it is evident that the company is not making a notable move. The trend seems to be downwards which means that the company is barely making profits. This could suggest that the company is operating using the same methods. To avoid the problem, it is advisable for them to focus on changing the current business models. RECOMMENDATIONS. For this company to improve its financial stability, the key thing is to initiate change in the way of operation. This is specifically in the business models that have a significant influence on the financial performance of a business. Examine the lines of credit. It is hard for a company to operate without credit. Therefore borrowing funds should be done wisely. There should also be a good plan to repay the borrowed money to avoid instability. Borrowing should also be done when it is very necessary. Review your production and overhead expenses. It is necessary to assess the level of expenses because they determine the level of profits. If the expenses are too much, it is likely that the firm will make little or no profits. Create a cash flow budget helps to compare the income and expenditure of every month. With this, the company can know how to allocate the available funds in the most profitable way. Inform the key employees on the effects of losses in the business. The management should make the employees aware that making losses is one of the worst things in business. This helps them to be careful enough to avoid the same. It is also important to identify the chief customers. The company should ensure tha.

1. Stage 3 of the Project
Reflection Paper
FINC 330
University of Maryland University College
ConAgra Brands Inc. is a company that deals with the
manufacture of food. Like any other company, it has its
financial report. The reports are not constant every year; they
keep on changing each year. This is as a result of various
reasons, which may cause an increase or a decrease in the
financial income or expenditure. The net sales in the three years
are almost constant apart from slight deviations. The cost of
goods sold has shown an increment from 2014 to 2015, but in
2016, there was a decline. Regarding selling, general and
administrative expenses in 2014 were high, in 2015 it
decreased, but in 2016 it rose by 6%.interest expenses remained
the same throughout the three years at 3%.
Additionally, asset amounts for the company have also stayed
roughly the same over the past few years. On the other hand, the
liabilities have decreased from 12,827.8 in 2015 to 9,595.8 in
2016. That is a decrease of 3,232 in just one year. Total assets
also decreased from 2015 to 2016 with a balance starting at
17,437.8 and ending with a balance of 13,390.6. Equity, along

2. with most other aspects of the company, has stayed within close
range from year to year with a balance of 4,610 in 2015 and a
balance of 3,794.8 in 2016.
From the financial statistics we have for the net income, income
statement, balance sheet among others, it is evident that the
company is not making a notable move. The trend seems to be
downwards which means that the company is barely making
profits. This could suggest that the company is operating using
the same methods. To avoid the problem, it is advisable for
them to focus on changing the current business models.
RECOMMENDATIONS.
For this company to improve its financial stability, the key
thing is to initiate change in the way of operation. This is
specifically in the business models that have a significant
influence on the financial performance of a business.
Examine the lines of credit. It is hard for a company to operate
without credit. Therefore borrowing funds should be done
wisely. There should also be a good plan to repay the borrowed
money to avoid instability. Borrowing should also be done when
it is very necessary.
Review your production and overhead expenses. It is necessary
to assess the level of expenses because they determine the level
of profits. If the expenses are too much, it is likely that the firm
will make little or no profits.
Create a cash flow budget helps to compare the income and
expenditure of every month. With this, the company can know
how to allocate the available funds in the most profitable way.
Inform the key employees on the effects of losses in the
business. The management should make the employees aware
that making losses is one of the worst things in business. This
helps them to be careful enough to avoid the same.
It is also important to identify the chief customers. The
company should ensure that it maintains these customers. To

3. add on that, the firm should calculate the loss that can be
incurred in case any of them is lost.
In conclusion, it is evident that a firm can do a lot to ensure that
it has stability. If these recommendations are taken into
account, the company will improve greatly regarding its
financial performance and stability.
Running Head: Financial Research Project
1
Financial Research Project
19
Financial Research Project
Student’s Name
Institutional Affiliation
Background and Industry
Campbell Soup Company is also known as Campbell’s. The
company is based in the United States. It is involved in the

4. canning of soup and other related products. The company deals
with provision of soups, snacks and beverages. Most of its
income however comes from the sale of soup. The company has
currently managed to sell its products in over 120 countries.
The company is in the food processing industry. The company
has been operations since 1869.
Common Size Analysis
Campbell Soup
Income Statement (Values in Millions)
Period Ending:
7/31/2016
8/2/2015
8/3/2014
Total Revenue
$7,961,000
100%
$8,082,000
100%
$8,268,000
100%
Cost of Revenue
$5,181,000
65%
$5,300,000
66%
$5,297,000
64%
Gross Profit
$2,780,000
35%
$2,782,000
34%

5. $2,971,000
36%
Operating Expenses
Research and Development
$124,000
2%
$117,000
1%
$122,000
1%
Sales, General and Admin.
$1,665,000
21%
$1,509,000
19%
$1,527,000
18%
Non-Recurring Items
$31,000
0%
$102,000
1%
$55,000
1%
Other Operating Items
$0
0%
$0
0%
$0

6. 0%
Operating Income
$960,000
12%
$1,054,000
13%
$1,267,000
15%
Add'l income/expense items
$4,000
0%
$3,000
0%
$3,000
0%
Earnings Before Interest and Tax
$964,000
12%
$1,057,000
13%
$1,270,000
15%
Interest Expense
$115,000
1%
$108,000
1%
$122,000
1%
Earnings Before Tax
$849,000
11%
$949,000
12%
$1,148,000
14%

7. Income Tax
$286,000
4%
$283,000
4%
$374,000
5%
Minority Interest
$0
0%
$0
0%
$11,000
0%
Equity Earnings/Loss Unconsolidated Subsidiary
$0
0%
$0
0%
$0
0%
Net Income-Cont. Operations
$563,000
7%
$666,000
8%
$774,000
9%
Net Income
$563,000
7%
$666,000
8%
$866,000
10%
Campbell Soup

8. Balance Sheet (Values in 000's)
Period Ending:
7/31/2016
8/2/2015
8/3/2014
Current Assets
Cash and Cash Equivalents
$296,000
4%
$253,000
3%
$232,000
3%
Short-Term Investments
$0
0%
$0
0%
$0
0%
Net Receivables
$626,000
8%
$647,000
8%
$670,000
8%

9. Inventory
$940,000
12%
$995,000
12%
$1,016,000
13%
Other Current Assets
$46,000
1%
$198,000
2%
$182,000
2%
Total Current Assets
$1,908,000
24%
$2,093,000
26%
$2,100,000
26%
Long-Term Assets
Long-Term Investments
$0
0%
$0
0%
$0
0%
Fixed Assets

10. $2,407,000
31%
$2,347,000
29%
$2,318,000
29%
Goodwill
$2,263,000
29%
$2,344,000
29%
$2,433,000
30%
Intangible Assets
$1,152,000
15%
$1,205,000
15%
$1,175,000
14%
Other Assets
$107,000
1%
$88,000
1%
$87,000
1%
Deferred Asset Charges
$0
0%
$0
0%
$0
0%
Total Assets
$7,837,000

11. 100%
$8,077,000
100%
$8,113,000
100%
Current Liabilities
Accounts Payable
$1,336,000
17%
$1,263,000
16%
$1,218,000
15%
Short-Term Debt / Current Portion of Long-Term Debt
$1,219,000
16%
$1,543,000
19%
$1,771,000
22%
Other Current Liabilities
$0
0%
$0
0%
$0
0%
Total Current Liabilities
$2,555,000
33%

12. $2,806,000
35%
$2,989,000
37%
Long-Term Debt
$2,314,000
30%
$2,539,000
31%
$2,244,000
28%
Other Liabilities
$1,039,000
13%
$850,000
11%
$729,000
9%
Deferred Liability Charges
$396,000
5%
$505,000
6%
$548,000
7%
Misc. Stocks
$0
0%
$0
0%
$0
0%
Minority Interest
$8,000
0%
($4,000)

13. 0%
($12,000)
0%
Total Liabilities
$6,312,000
81%
$6,696,000
83%
$6,498,000
80%
Stock Holders’ Equity
Common Stocks
$12,000
0%
$12,000
0%
$12,000
0%
Capital Surplus
$354,000
5%
$339,000
4%
$330,000
4%
Retained Earnings
$1,927,000
25%
$1,754,000
22%

14. $2,198,000
27%
Treasury Stock
($664,000)
-8%
($556,000)
-7%
($356,000)
-4%
Other Equity
($104,000)
-1%
($168,000)
-2%
($569,000)
-7%
Total Equity
$1,525,000
19%
$1,381,000
17%
$1,615,000
20%
Total Liabilities & Equity
$7,837,000
100%
$8,077,000
100%
$8,113,000
100%
The company has been going through some tough times. This is
evidence by the fact that the percentage of the net income since
2014 has been declining. The company had a net income
percentage of 10% in 2014, 8% in 2015 and 7% in 2016. The
company’s costs of goods sold does not have the same

15. percentage changes as the net income. The company’s operating
costs have been increasing over the last three years. This
evident from the constant decrease of the earnings before
interest and tax. It is therefore clear that the company needs to
control its costs especially the operating costs in order to
maintain its profitability.
The balance sheet does not show any issues that raises any
concern. The company has maintained small changes in all its
accounts. The changes in the percentage value of the accounts
changes with a slight one percent change. There are no large
changes that can cause concern. The major change in
comparison to the rest is the decrease of the retained earnings of
the company in 2015 and an increase in 2016 which is a good
sign. There percentage of the total liabilities on the three-year
period is high. The company has around 80% of its assets being
financed by liability (White, Braentner & Towery, 1993).
The income statement mainly raises concern on the decrease in
the company’s profitability. The company is also being financed
too much by debt which can be risky. From the interest expense
however, it is clear that the company can comfortably be able to
pay off its debt. The company is stable enough and can be able
to pay of its debt. The company needs to make its profitability
to be stable in positive and not negative growth.
Percentage Change Analysis
Campbell Soup
Income Statement (Values in Millions)
Period Ending:
7/31/2016
Percent Increase (Decrease)
8/2/2015
Percent Increase (Decrease)
8/3/2014
Total Revenue
$7,961,000
-4%

16. $8,082,000
-2%
$8,268,000
Cost of Revenue
$5,181,000
-2%
$5,300,000
0%
$5,297,000
Gross Profit
$2,780,000
-6%
$2,782,000
-6%
$2,971,000
Operating Expenses
Research and Development
$124,000
2%
$117,000
-4%
$122,000
Sales, General and Admin.
$1,665,000
9%
$1,509,000
-1%
$1,527,000
Non-Recurring Items
$31,000
-44%

17. $102,000
85%
$55,000
Other Operating Items
$0
-
$0
$0
Operating Income
$960,000
-24%
$1,054,000
-17%
$1,267,000
Add'l income/expense items
$4,000
33%
$3,000
0%
$3,000
Earnings Before Interest and Tax
$964,000
-24%
$1,057,000
-17%
$1,270,000
Interest Expense
$115,000
-6%
$108,000
-11%
$122,000
Earnings Before Tax
$849,000
-26%

18. $949,000
-17%
$1,148,000
Income Tax
$286,000
-24%
$283,000
-24%
$374,000
Minority Interest
$0
-100%
$0
-100%
$11,000
Equity Earnings/Loss Unconsolidated Subsidiary
$0
-
$0
-
$0
Net Income-Cont. Operations
$563,000
-27%
$666,000
-14%
$774,000
Net Income
$563,000
-35%
$666,000
-23%
$866,000
Campbell Soup
Balance Sheet (Values in 000's)
Period Ending:

19. 7/31/2016
Percent Increase (Decrease)
8/2/2015
Percent Increase (Decrease)
8/3/2014
Current Assets
Cash and Cash Equivalents
$296,000
28%
$253,000
9%
$232,000
Short-Term Investments
$0
-
$0
-
$0
Net Receivables
$626,000
-7%
$647,000
-3%
$670,000
Inventory
$940,000
-7%
$995,000
-2%
$1,016,000
Other Current Assets
$46,000
-75%
$198,000
9%
$182,000

20. Total Current Assets
$1,908,000
-9%
$2,093,000
0%
$2,100,000
Long-Term Assets
Long-Term Investments
$0
-
$0
-
$0
Fixed Assets
$2,407,000
4%
$2,347,000
1%
$2,318,000
Goodwill
$2,263,000
-7%
$2,344,000
-4%
$2,433,000
Intangible Assets
$1,152,000
-2%
$1,205,000
3%
$1,175,000

21. Other Assets
$107,000
23%
$88,000
1%
$87,000
Deferred Asset Charges
$0
-
$0
-
$0
Total Assets
$7,837,000
-3%
$8,077,000
0%
$8,113,000
Current Liabilities
Accounts Payable
$1,336,000
10%
$1,263,000
4%
$1,218,000
Short-Term Debt / Current Portion of Long-Term Debt
$1,219,000
-31%
$1,543,000
-13%
$1,771,000

22. Other Current Liabilities
$0
-
$0
-
$0
Total Current Liabilities
$2,555,000
-15%
$2,806,000
-6%
$2,989,000
Long-Term Debt
$2,314,000
3%
$2,539,000
13%
$2,244,000
Other Liabilities
$1,039,000
43%
$850,000
17%
$729,000
Deferred Liability Charges
$396,000
-28%
$505,000
-8%
$548,000
Misc. Stocks
$0
$0
-
$0

23. Minority Interest
$8,000
-167%
($4,000)
-67%
($12,000)
Total Liabilities
$6,312,000
-3%
$6,696,000
3%
$6,498,000
Stock Holders’ Equity
Common Stocks
$12,000
0%
$12,000
0%
$12,000
Capital Surplus
$354,000
7%
$339,000
3%
$330,000
Retained Earnings
$1,927,000
-12%
$1,754,000
-20%
$2,198,000

24. Treasury Stock
($664,000)
87%
($556,000)
56%
($356,000)
Other Equity
($104,000)
-82%
($168,000)
-70%
($569,000)
Total Equity
$1,525,000
-6%
$1,381,000
-14%
$1,615,000
Total Liabilities & Equity
$7,837,000
-3%
$8,077,000
0%
$8,113,000
As 2014 as the base year, the trend that can be seen from the
analysis above is a poor one. The company’s sales have reduced
over the last two years. In 2015 the decrease was 2% and in
2016 the decrease was 4%. This raises concern that the
company’s market share has been reducing over the years. The
company need to carry out marketing activities that are meant to
increase its revenues.
The company has increased some of its expenses and reduced
others. The company in 2016 increased its expenditure in
research and development. The company increased its

25. expenditure on sales, general and administration. The
percentage increase is 9% which is worrying. Despite the
company reducing its revenues, it accrued a lot of operating
expenses and thus there was huge decrease in the company’s
operating income in 2016 in comparison to 2014 (White,
Braentner & Towery, 1993).
The company’s current assets reduced considerably in 2016 in
comparison to 2014. The company decreased the amount of
short-term debt that it took in 2016 and 2015. The company’s
total liabilities however slightly reduced by 3% in 2016 while in
2015 it had increased with the same percentage. The company
tried to reduce its debt financing. Equity financing also reduced
its more in 2015 and less in 2016. The company’s value of its
total assets and the equity and liabilities amount reduced by 3%.
Financial Ratio Analysis
Financial Ratio Analysis
Ratio
2016
2015
2014
Current Ratio
75%
75%
70%
Quick Ratio
38%
39%
36%
Days Inventory
68.09
69.48
65.97
Receivables Turnover
13.45

26. 13.17
12.67
Gross Profit Margin
35%
34%
36%
Net Profit Margin
7%
8%
10%
ROA
7.07%
8.53%
9.95%
ROE
37%
48%
54%
In the above ratio analysis, two ratios are used to determine the
liquidity of the company. These are the current ratio and quick
ratio. The current ratio is the ratio of a company’s current assets
to its current liabilities. The quick ratio is the ratio of a
company’s most liquid asset which include current assets less
inventory to its current liabilities. the ratios are used to show
the ability of a company to meets its short-term liabilities using
its current assets. The company has low liquidity. This is a
problem as the company will have difficulty when paying for its
obligations. The company needs to increase the money that it
takes from operations and increase its accounts receivable. The
company has been able to maintain its liquidity over the last
year with small differences between the years. Its quick ratio
increased slightly in 2015 but decreased slightly in 2016.

27. The profitability ratio that were used in this scenario were the
gross margin ratio and net margin. The gross profit margin ratio
is a ratio of gross profit to revenues. The net margin ratio is a
ratio of net income to total revenues. The company’s gross
margin decreased slightly in 2015 and increased in 2016. The
company’s net margin ratio has however been decreasing since
2014. The difference between the ratios is a clear sign that the
company accrues too much operating costs and its operating
costs have been increasing over the last 3 years. The company’s
profitability has reduced which is a sign that the company
should reduce its expenses and increase its revenues for it to
increase its growth (Bodie, 2013).
The days inventory turnover shows the period of time it takes
for the company’s inventory to be sold. The company takes
around 60 days to sell its inventory. This is a long time which
the company has to maintain its inventory. this leaves chances
of loss of inventory due to storage. The receivables turnover
ratio is used to determine the ability of a company in managing
its account receivables. The company receives its account
receivable about 13 times per year. This means that the
company collects accounts receivable in less than a month. The
company however needs to improve in order to improve its
liquidity.
Return on Assets (ROA), is a ratio of net income to total assets.
Return on Equity (ROE), is the ratio of net income to total
equity. The returns on investment has been reducing over the
last three years. The company needs to improve on its net
earnings through increasing its revenues and reducing its
expenses. An increase in its net earnings will in turn increase
the return on the investment made by the company. the company
needs to generate more earnings from the assets that it as
(Bodie, 2013).

28. In order to improve the company’s Cash Conversion Cycle
(CCC), the company needs to convince their suppliers to
increase the period of time within which the company is
expected to meet its obligations. These would increase the time
that accounts payable are settled. The management would also
need to reduce the period of time that the customers takes to
pay the company. this can be done by giving the customers
incentive such as discounts for them to pay within a shorter
period of time. The company would also need to send invoices
to the customers within a short period of time (Lewis, 2017).
The company would also need to improve its efficiency. The
company should improve its efficiency in the billing and
invoicing process. These will contribute to faster time for the
company to receive the cash that is owed to it. The company
also needs to manage its inventory. The company should
manage its inventory such as it does not keep too much
inventory. inventory ties up capital for a long period of time.
Return on Equity
ROE = Net profit margin x Total assets turnover x Equity
multiplier
2016
Net profit Margin = 7%
Total Asset Turnover = 1.02
Equity Multiplier = 5.14
= 7% * 1.02 * 5.14
=36.70%
2015
Net profit Margin = 8%
Total Asset Turnover = 1.00
Equity Multiplier = 5.85
= 8% * 1.00 * 5.85

29. = 46.8%
2014
Net profit Margin = 10%
Total Asset Turnover = 1.02
Equity Multiplier = 5.02
= 10% * 1.02 * 5.02
= 51.20%
DuPont Analysis is of the view that the return on equity is
affected by three aspects. The first is the net margin, the second
is the asset turnover ratio which in this we use the total asset
turnover and the third is the equity multiplier.
The company’s return on assets has been deteriorating over the
three years. The company’s net margin can be seen to be the
most troubled aspect of the company. In 2014, the net margin
was 10% and yet by 2016 the company had a net margin ratio of
7%. The company’s operations need to improve. The company’s
net margin has been decreasing over the last three years. The
company needs to work on its operations (Wahlen, Baginski &
Bradshaw, 2014).
The company can work on its operations by increasing its
revenues through carrying out more marketing in order for the
product to reach more of their customers. The company also
needs to reduce its expenses. In this case, the company should
try to increase its operating activities. By reducing the expenses
and increasing the revenues, the company will achieve better
net margin ratio.
References
Bodie, Z. (2013). Investments. McGraw-Hill.
Lewis, J., (2017). How Can a Company Shorten Its Cash Cycle?
Hearst Newspapers, LLC.
Wahlen, J., Baginski, S., & Bradshaw, M. (2014). Financial
reporting, financial statement analysis and valuation. Nelson
Education.

30. White, B., Braentner, L., & Towery, E. (1993). Financial
Statement Analysis. New York: Wiley.
_1558262554.xls
Chart12014201465.9712.670.360.10.09950.542015201569.4813.
170.340.080.08530.482016201668.0913.450.350.070.07070.37
Current Ratio
Quick Ratio
Days Inventory
Receivables Turnover
Gross Profit Margin
Net Profit Margin
ROA
ROE
Financial Ratios
0.7
0.36
0.75
0.39
0.75
0.38
Sheet1CampBell SoupIncome Statement (Values in
Millions)Period Ending:7/31/168/2/158/3/14Total
Revenue$7,961,000100%$8,082,000100%$8,268,000100%Cost
of Revenue$5,181,00065%$5,300,00066%$5,297,00064%Gross
Profit$2,780,00035%$2,782,00034%$2,971,00036%Operating
ExpensesResearch and
Development$124,0002%$117,0001%$122,0001%Sales, General
and Admin.$1,665,00021%$1,509,00019%$1,527,00018%Non-
Recurring Items$31,0000%$102,0001%$55,0001%Other
Operating Items$00%$00%$00%Operating
Income$960,00012%$1,054,00013%$1,267,00015%Add'l
income/expense items$4,0000%$3,0000%$3,0000%Earnings
Before Interest and
Tax$964,00012%$1,057,00013%$1,270,00015%Interest
Expense$115,0001%$108,0001%$122,0001%Earnings Before
Tax$849,00011%$949,00012%$1,148,00014%Income

31. Tax$286,0004%$283,0004%$374,0005%Minority
Interest$00%$00%$11,0000%Equity Earnings/Loss
Unconsolidated Subsidiary$00%$00%$00%Net Income-Cont.
Operations$563,0007%$666,0008%$774,0009%Net
Income$563,0007%$666,0008%$866,00010%
Sheet2CampBell SoupBalance Sheet (Values in 000's)Period
Ending:7/31/168/2/158/3/14Current AssetsCash and Cash
Equivalents$296,0004%$253,0003%$232,0003%Short-Term
Investments$00%$00%$00%Net
Receivables$626,0008%$647,0008%$670,0008%Inventory$940,
00012%$995,00012%$1,016,00013%Other Current
Assets$46,0001%$198,0002%$182,0002%Total Current
Assets$1,908,00024%$2,093,00026%$2,100,00026%Long-Term
AssetsLong-Term Investments$00%$00%$00%Fixed
Assets$2,407,00031%$2,347,00029%$2,318,00029%Goodwill$2
,263,00029%$2,344,00029%$2,433,00030%Intangible
Assets$1,152,00015%$1,205,00015%$1,175,00014%Other
Assets$107,0001%$88,0001%$87,0001%Deferred Asset
Charges$00%$00%$00%Total
Assets$7,837,000100%$8,077,000100%$8,113,000100%Current
LiabilitiesAccounts
Payable$1,336,00017%$1,263,00016%$1,218,00015%Short-
Term Debt / Current Portion of Long-Term
Debt$1,219,00016%$1,543,00019%$1,771,00022%Other
Current Liabilities$00%$00%$00%Total Current
Liabilities$2,555,00033%$2,806,00035%$2,989,00037%Long-
Term Debt$2,314,00030%$2,539,00031%$2,244,00028%Other
Liabilities$1,039,00013%$850,00011%$729,0009%Deferred
Liability Charges$396,0005%$505,0006%$548,0007%Misc.
Stocks$00%$00%$00%Minority Interest$8,0000%($4,000)-
0%($12,000)-0%Total
Liabilities$6,312,00081%$6,696,00083%$6,498,00080%Stock
Holders EquityCommon
Stocks$12,0000%$12,0000%$12,0000%Capital
Surplus$354,0005%$339,0004%$330,0004%Retained
Earnings$1,927,00025%$1,754,00022%$2,198,00027%Treasury

32. Stock($664,000)-8%($556,000)-7%($356,000)-4%Other
Equity($104,000)-1%($168,000)-2%($569,000)-7%Total
Equity$1,525,00019%$1,381,00017%$1,615,00020%Total
Liabilities &
Equity$7,837,000100%$8,077,000100%$8,113,000100%
Sheet3CampBell SoupIncome Statement (Values in
Millions)Period Ending:7/31/16Percent Increase
(Decrease)8/2/15Percent Increase (Decrease)8/3/14Total
Revenue$7,961,000-4%$8,082,000-2%$8,268,000Cost of
Revenue$5,181,000-2%$5,300,0000.06%$5,297,000Gross
Profit$2,780,000-6%$2,782,000-6%$2,971,000Operating
ExpensesResearch and Development$124,0002%$117,000-
4%$122,000Sales, General and
Admin.$1,665,0009%$1,509,000-1%$1,527,000Non-Recurring
Items$31,000-44%$102,00085%$55,000Other Operating
Items$0-$0$0Operating Income$960,000-24%$1,054,000-
17%$1,267,000Add'l income/expense
items$4,00033%$3,0000%$3,000Earnings Before Interest and
Tax$964,000-24%$1,057,000-17%$1,270,000Interest
Expense$115,000-6%$108,000-11%$122,000Earnings Before
Tax$849,000-26%$949,000-17%$1,148,000Income
Tax$286,000-24%$283,000-24%$374,000Minority Interest$0-
100%$0-100%$11,000Equity Earnings/Loss Unconsolidated
Subsidiary$0-$0-$0Net Income-Cont. Operations$563,000-
27%$666,000-14%$774,000Net Income$563,000-35%$666,000-
23%$866,000
Sheet4CampBell SoupBalance Sheet (Values in 000's)Period
Ending:7/31/16Percent Increase (Decrease)8/2/15Percent
Increase (Decrease)8/3/14Current AssetsCash and Cash
Equivalents$296,00028%$253,0009%$232,000Short-Term
Investments$0-$0-$0Net Receivables$626,000-7%$647,000-
3%$670,000Inventory$940,000-7%$995,000-
2%$1,016,000Other Current Assets$46,000-
75%$198,0009%$182,000Total Current Assets$1,908,000-
9%$2,093,000-0.3%$2,100,000Long-Term AssetsLong-Term
Investments$0-$0-$0Fixed

33. Assets$2,407,0004%$2,347,0001%$2,318,000Goodwill$2,263,0
00-7%$2,344,000-4%$2,433,000Intangible Assets$1,152,000-
2%$1,205,0003%$1,175,000Other
Assets$107,00023%$88,0001%$87,000Deferred Asset
Charges$0-$0-$0Total Assets$7,837,000-3%$8,077,000-
0%$8,113,000Current LiabilitiesAccounts
Payable$1,336,00010%$1,263,0004%$1,218,000Short-Term
Debt / Current Portion of Long-Term Debt$1,219,000-
31%$1,543,000-13%$1,771,000Other Current Liabilities$0-$0-
$0Total Current Liabilities$2,555,000-15%$2,806,000-
6%$2,989,000Long-Term
Debt$2,314,0003%$2,539,00013%$2,244,000Other
Liabilities$1,039,00043%$850,00017%$729,000Deferred
Liability Charges$396,000-28%$505,000-8%$548,000Misc.
Stocks$0$0-$0Minority Interest$8,000-167%($4,000)-
67%($12,000)Total Liabilities$6,312,000-
3%$6,696,0003%$6,498,000Stock Holders EquityCommon
Stocks$12,0000%$12,0000%$12,000Capital
Surplus$354,0007%$339,0003%$330,000Retained
Earnings$1,927,000-12%$1,754,000-20%$2,198,000Treasury
Stock($664,000)87%($556,000)56%($356,000)Other
Equity($104,000)-82%($168,000)-70%($569,000)Total
Equity$1,525,000-6%$1,381,000-14%$1,615,000Total
Liabilities & Equity$7,837,000-3%$8,077,000-0%$8,113,000
Sheet5Financial Ratio AnalysisRatio201620152014Current
Ratio75%75%70%Quick Ratio38%39%36%Days
Inventory68.0969.4865.97Receivables
Turnover13.4513.1712.67Gross Profit Margin35%34%36%Net
Profit
Margin7%8%10%ROA7.07%8.53%9.95%ROE37%48%54%Curr
ent RatioQuick RatioDays InventoryReceivables TurnoverGross
Profit MarginNet Profit
MarginROAROE201470%36%65.9712.6736%10%9.95%54%201
575%39%69.4813.1734%8%8.53%48%201675%38%68.0913.45
35%7%7.07%37%
Sheet5

34. Current Ratio
Quick Ratio
Days Inventory
Receivables Turnover
Gross Profit Margin
Net Profit Margin
ROA
ROE
Financial Ratios
Project Stage 4
Ball Corp, BLL
FINC 330 6380
June 24, 2017

35. Bond Performance
Name
Maturity date
Amount $ Mil
Price
Coupon %
Yield to Maturity
Ball 4.375%
12/15/2020
1,000.0
104.0
4.375
3.18
Ball 5.25%
5/1/2025
1,000.0
108.0

36. 5.250
4.08
Assuming that par value is $1,000
Last prices of bonds were:
($1000/100) x 104 = $1040.00
($1000/100) x 108 = $1080.00
Annual coupon interest payments:
$1000 x 4.375% = $43.75
$1000 x 5.250% = $52.50
Current yield of bonds:
43.75/104=0.42=42%
52.50/108=0.4861=48.61%
Assuming semi-annual coupon payments, annual YTM of bonds:
Assuming interest rates are expected to remain at their current
level, prices of bonds …
Assuming bonds can be called back in one year from today at
105% facevalue, yield to call:
Financial Leverage Ratios
2016
2015
2014
Debt ratio
Debt to Equity ratio
2.13

37. 4.04
2.90
Interest coverage ratio
1.55
3.41
5.04
Write about 1page of the analysis of the ratio results. In your
analysis you should answer the following questions. Please
explain your answer to each question.
How is THE COMPANY financing it's assets? Is it too
risky to buy bonds of THE COMPANY?
Stock Performance
2016
2015
2014
Earnings per share
.81
.99
1.65
Dividends
.26
.26
.26
Book value per share
10.62
3.66
4.43
BLL
Industry Average

38. Price/Earnings
28.9
26.0
Price/ Cash flow
10.6
13.2
b) Write about 1 page of analysis of the market ratio results that
you found. Compare the market ratio results against the industry
or main competitor. In your report please answer the question:
Are the common stockholders receiving an adequate return on
their investment?
Historical Stock Prices
Question 3(a)
Market ratios - The complete list of market ratios is in the
Homework 1F. The same ratios are in Review for week 1 and in
Self-Assessments for week 1 homework 1F.
Question 3(d):
Historical 52-weeks return shows the past performance of a
stock. This return can be used to predict future returns.
However historical return is not necessary to be kept in future.
Future performance of the stock should be estimated using
current and future situation in the company and in the market.
CAPM shows theoretical return in accordance with the
riskiness of the stock measured by beta.
If return calculated using CAPM was higher than what it was
calculated using actual 52-weeks data, the company received
less return than expected in accordance with the riskiness of
stock. This stock is called overvalued. You don’t want to buy

39. overvalued stocks!
If return calculated using CAPM was lower than what was
originally calculated using actual 52-weeks data, the
company received higher return than expected in accordance
with the riskiness of stock. This stock is called undervalued.
Investors are looking for undervalued stocks. Again, historical
52-weeks data should be adjusted in both cases for the future
forecast of the performance of the company.
We are using 10.5% market return in this part of the project.
Actually it should be estimated using performance of S&P500
or any other broad market indexes. This is another reason for
the difference between historical return and CAPM required
return in this discussion.
How to find bonds on www.morningstar.com
Step 1: Log on www.morningstar.com website and type the
stock symbol in the window Quote on the top of the screen. (See
Screenshot 1 attached).
If your website looks differently, click on “Go to the Old
Morningstar Website” in the very upper right corner of the
window. Morningstar is currently working on a new version of
the website.
Step 2: Click on Bonds (see screenshot #2). It will take 20-30
seconds for the web page to appear. After you got into the web
page, scroll all the way down. You will see the list of bonds.
Please let me know if something does not work. I checked each
company before the semester started, all the companies assigned
for the project in this class have bonds listed on this website.
All three ratios that are required for the Bonds part of the
project can be found on Morningstar website.
Debt/Equity and Debt/total assets are listed on the Bonds page.
Debt/total assets is called here as Debt/Assets ratio.
Interest Coverage ratio is listed on Key Ratios page.
Please see attached screenshots.