Kellogg Company has its headquarters in Battle Creek, Michigan. The company manufactures and sells ready-to-eat breakfast cereals and convenience foods including cookies, toaster pastries, and cereal bars. Selected data from Kellogg Company€™s 2005 annual report follows (dollar amounts in millions).

In its 2005 annual report, Kellogg Company disclosed that
. . . €œWe met or exceeded our goals while investing in our brands, our people, and our future. We have a proven, focused strategy and pragmatic operating principles in Volume to Value and Manage for Cash that keep us focused on the right metrics. All of this, in combination with our realistic growth targets, drives sustainable and dependable performance.€

Instructions
(a) Compute the percentage change in sales, operating profit, net cash flow, and net earnings from year to year for the years presented.
(b) Evaluate Kellogg€™s performance. Which trend seems most favorable? Which trend seems least favorable? What are the implications of these trends for Kellogg€™s sustainable performance objectives?Explain.

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2003 Kellogg Company 2004 $10,177.20 $9,613.90 $8,811.50 $1,750.30 $1,681.10 $1,544.10 2005 Sales Gross profit % Operating profit Net cash flow less capital expenditures Net earnings 44.90% 44.90% 44.40% $769.10 $950.40 $890.60 $923.80 $787.10 $980.40