Kellogg Company produces, markets, and distributes cereal and food products including CheezIt, Coco Pops, Rice Krispies, and Pringles. The following partial income statements (in millions) were adapted from recent financial statements.

1. Prepare common-sized income statements for Years 2 and 1. Round to one decimal place.
2. Using (1), analyze the performance of Kellogg in Year2.

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Year 2 Year 1 Sales Cost of sales Gross profit Operating expenses Operating income $13,198 12,397 7750) 7108) S 5,289 (3,299) S 1,990 (7,108) ...( .. 5,448 (3,472) $ 1,976