General Millss and Kelloggs Current Liabilities Refer to General Millss and Kelloggs annual reports reprinted at the

Question:

General Mills’s and Kellogg’s Current Liabilities Refer to General Mills’s and Kellogg’s annual reports reprinted at the back of the book. Using the companies’ balance sheets and accompanying notes, write a response to the following questions:

Required
1. Determine General Mills’s current ratio for fiscal years 2008 and 2007. What do the ratios indicate about the liquidity of the company?
2. How do the current liabilities of Kellogg’s and General Mills compare?
3. Refer to the companies’ notes. Do the companies have any for lawsuits or litigation? If so, how were these treated on the financial statements?

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a...