Kellogg Company is the world€™s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. The following items were taken from its 2006 income statement and balance sheet. All dollars are in millions.

Instructions
Perform each of the following.
(a) In each case identify whether the item is an asset (A), liability (L), stockholders€™ equity (SE), revenue (R), or expense (E).
(b) Prepare an income statement for Kellogg Company for the year ended December 31,2006.

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Retained earnings Cost of goods sold Selling and $3,630.4 6,081.5 Long-term debt Inventories 3,053.0 823.9 10,906.7 910.4 104.6 466.5 13.2 Net sales administrative expenses 3,059.4 410.6 1,268.0 307.4 Accounts payable Cash Common stoclk Notes payable Interest expense Income tax expense Other revenue