Case Study Assignment: Campbell Soup Cases
This Assignment will require you to dig deep into the structure and composition of Campbell Soup's liabilities (debt) and equity. This will help you better understand the sources of funding in any business.
Locate the Campbell Soup Cases 3-2 and 3-3 on pages 219 and 220 of your text. Be sure to submit thoughtful and substantial answers to the questions following each case. This is a challenging activity. You should prepare to spend substantial time working on your response.
Directions for Submitting Your Project
Before you submit your project, you should save your work on your computer in a location, and with a name, that you will remember. Make sure your project is in the appropriate format (Word, Excel, PowerPoint, or other); then, when you are ready, you may submit on the CASE 3-2
Analyzing and Interpreting Liabilities Refer to the annual report of Campbell Soup Company in Appendix
A. Campbell Soup Required:
a. Identify Campbell Soup's major categories of liabilities. Identify which of these liabilities require recognition of interest expense.
b. Reconcile activity in the long-term borrowing account for Year 11.
c. Describe the composition of Campbell Soup's long-term liabilities account using its note 19. Page 220CASE
3-3Analyzing and Interpreting Equity Refer to the annual report of Campbell Soup Company in Appendix
A. Campbell Soup Required:
a. Determine the book value per share of Campbell Soup's common stock for Year 11.
b. Identify the par value of Campbell Soup's common shares. Determine the number of common shares authorized, issued, and outstanding at the end of Year 11.
c. Determine how many common shares Campbell Soup repurchased as treasury stock for Year 11. Determine the price at which Campbell Soup repurchased the shares. CHECK(c) Year 11 repurchase price, $51.72