Campbell Soup Cases

Analyzing Financing Activities

Business activities are financed through either liabilities or equity. Liabilities are obligations requiring payment of money, rendering of future services, or dispensing of specific assets. They are claims against a company’s present, and future assets and resources. Such claims are usually senior to holders of equity securities. You will consider securities straddling the line separating liabilities from equity. Equity refers to the claims of owners to the net assets of a company. A vital link in the decision process you will make is how companies will fund the projects it pursues, such as, new products, new technology, new facilities, and new machinery. The closer to this process you get, the better you will understand it, and the more successful you will be in your career.

After completing this unit, you should be able to:

  • Assess the principal characteristics of liabilities.
  • Identify off-balance-sheet financing and its consequences to risk analysis.
  • Analyze capital stock and its distinguishing features.
  • Describe retained earnings and their distribution through dividends.

Course Outcome practiced in this unit: Assess the principle characteristics of liabilities (debt), equity, and assets.

Unit 3 Assignment: Campbell Soup Cases 3-2 and 3-3


There are 2 total Word docs in this order: 1. Directions & 2. Word Doc of Appendix A. If anything else is needed, please let me know.

In this Assignment, you will be assessed based on the following outcome: Asses the principle characteristics of liabilities (debt), equity and assets.

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 (Detail below) . 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 Assignment Compose your Assignment in a Microsoft Word document and save it as Username- MT482 Assignment-Unit 3.docx (Example: TAllen- MT482 Assignment Unit 3.docx). This assignment will have to be completed by May 11,2021.


Assignment questions for these cases.

1.       Case 3-2: Identity Liabilities and Interest Expense and reconcile long term borrowing activity.

2.       Case 3-3: Identify par value, the number of shares issued and the number of shares authorized.

3.       Case 3-2: Describe the composition of the long term liabilities. (Responses exhibit strong critical thinking and appropriate analysis.)

4.       Case 3-3: Determine the book value per share of the common stock. (Responses exhibit strong critical thinking and appropriate analysis.)

Sentences are clear, concise, and direct; tone is appropriate. Grammatical skills are strong with almost no errors per page.


CASE 3–2 Analyzing and Interpreting Liabilities

Refer to the annual report of Campbell Soup Company in Appendix A. (PLEASE SEE ATTACHED WORD DOC)

Campbell Soup


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.


CASE 3–3 Analyzing and Interpreting Equity

Refer to the annual report of Campbell Soup Company in Appendix A.

Campbell Soup


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.