Refer to the financial statements of Quaker Oats Company in Problem 96 along with the following footnotes.

Refer to the financial statements of Quaker Oats Company in Problem 9–6 along with the following footnotes.

Required:
a. Recast Quaker Oats’ income statements through Income from Continuing Operations for Years 11, 10, and 9 (estimate federal income tax at 34%).
b. Interpret trends revealed by the re-casted incomestatements.

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SUPPLEMENTARY EXPENSE DATA ($ millions) Year 11 Year 10 Year 9 282.8 256.5 886.2 912.5 Total advertising and merchandising. . $1,407.4 $1,195.3 $1,142.7 $96.6 93.8 103.5 94.5 43.3 39.3 125.2 44.3 INTEREST (INCOME) EXPENSE Year 11 Research and development . . . . ($ millions) Year 10 Year 9 $120.2 $75.9 (12.4) Net interest allocated to discontinued operations (6.7) Year 11 Year 10 Year 9 %of Pretax %of Pretax % of Pretax ($ millions) Amount Income Amount Income Amount Income Tax provision based on the federal statutory rate.... $139.9 34.0% $130.0 34.0% $81.3 34.0% State and local income taxes, net of federal 16.7 4.1 11.93.1 3.2 ANC benefit . . . Repatriation of foreign earnings 4.3 1.0 4.8 9.8 1.3 2.5 Non-U.S. tax rate differential...8.2 6.8 $175.7 Miscellaneous items-net... Actual tax provision 42.7% $153.5 40.1% $90.2 37.7% OTHER (INCOME) EXPENSE (S millions) Year 11 Year 10 Year 9 $25.7 22.2 14.8 18.2 Losses (gains) from plant closings and (8.4) $16.4 119.4 (2.8) $149.6 Net other expense . . . . $32.6