Problem 1: What type of pension plan does Campbell Soup offer its employees?
Problem 2: Does Campbell Soup have a net pension asset or a net pension liability at July 28, Year 11? What is the amount?
Problem 3: Identify the amounts of the vested, accumulated, and projected benefit obligations at July 28, Year 11. What do those amounts represent?
Problem 4: What is the amount of the assets currently held by the pension plan?
Problem 5: What types of assets are held by the pension plan?
Problem 6: What is the net economic position of the pension plan?
Problem 7: What creates the difference between the net pension asset (liability) and the net economic position of the pension plan?
Problem 8: How much unrecognized prior service cost is left to amortize to pension expense?
Problem 9: Comment on the reasonableness of the expected return on plan assets.
Problem 10: Comment on the reasonableness of the long-term rate of compensation increase for employees. Comment from the viewpoint of an equity analyst and the viewpoint of a potential employee.
Sourced from Wild-Subramanyan-Halsey: Financial Statement Analysis, Ninth Edition.
Appendix A: Financial Statements
Campbell Soup
Copyright: The McGraw-Hill Companies, 2007.