Refer to the financial statement information of Kellogg’s reprinted at the back of the book.

Required
1. Using the format in Example 13-5, prepare common-size comparative income statements for 2008 and 2007. Use as the base “Net sales.” Round all percentages to the nearest one-tenth of a percent.
2. What changes do you detect in the income statement relationships from 2007 to 2008?
3. Using the format in Example 13-4, prepare common-size comparative balance sheets at the end of 2008 and 2007. Round all percentages to the nearest one-tenth of a percent.
4. What observations can you make about the relative composition of Kellogg’s assets from the common-size statements? What observations can be made about the changes in the relative composition of liabilities and stockholders’ equity accounts?