Kellogg Company is the world€™s leading producer of ready-to-eat cereal products. In recent years, the company has taken numerous steps aimed at improving its profitability and earnings per share. Presented below are some basic facts for Kellogg.

Instructions
(a) What are some of the reasons that management purchases its own stock?
(b) Explain how earnings per share might be affected by treasury stock transactions.
(c) Calculate the ratio of debt to assets for 2010 and 2011, and discuss the implications of thechange.

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2011 2010 Net sales Net income Total assets Total liabilities Common stock, $0.25 par value Capital in excess of par value $13,198 1,229 11,901 10,139 105 $12,397 1.240 11,847 9.693 105 495 6,122 2,650 Treasury stock, at cost Number of shares outstanding in millions) 6,721 3,130 357