Refer to the financial statement information of Kelloggs reprinted at the back of the book. Required1. 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
Chapter 13, Decision Cases #2
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?
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?
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1. Common-size comparative income statements: KELLOGG'S COMMON-SIZE CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 30, 2008 AND DECEMBER 31, 2007 (IN MILLIONS OF DOLLARS) 2008 2007 Dol…View the full answer
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