Kellogg Company and Subsidiaries CONSOLIDATED STATEMENT OF CASH FLOWS (millions) 2015 2014 2016 Operating activities Net income 695 $ 614 $ 633 Adjustments to reconcile net income to operating cash flows: 503 Depreciation and amortization 577 534 Postretirement benefit plan expense 198 320 803 Deferred income taxes (26) 169) 254 Stock compensation 63 51 37 Venezuela deconsolidation 72 169 Venezuela remeasurement 11 VIE deconsolidation (49) Other (74) (13) (125) (53) Postretirement benefit plan contributions (33) 33 Changes in operating assets and liabilities, net of acquisitions: Trade receivables 21 (127) 131 7 (42) (30) Inventories 124 427 96 Accounts payable 4 29 87 Accrued income taxes Accrued interest expense 5 ( 2 ) 7 (21 ) Accrued and prepaid advertising, promotion and trade allowances 14 Accrued salaries and wages (7 ) 20 (7 ) 35 (52) (5) All other current assets and liabilities Net cash provided by (used in) operating activities 1,628 $ 1,691 1,793 investing activities Additions to properties $ (507) $ (553) $ (582) Acquisitions, net of cash acquired (398) (161) Reduction of cash due to Venezuela deconsolidation (2) investments in unconsolidated entities 27 (456) (6) Other (13) 43 15 Net cash provided by (used in) investing activities $ (893) $ (1,127) $ (573) Financing activities Net increase (reduction) of notes payable, with maturities less than or equal to 90 days (918) 443 183 Issuances of notes payable, with maturities greater than 90 days 1,961 214 1,030 Reductions of notes payable, with maturities greater than 90 days (1,831) (283) (1,124) Issuances of long-term debt 2,657 696 952 Reductions of long-term debt (1,737) (606) (960) Net issuances of common stock 368 261 217 Common stock repurchases (426) (731) (690) Cash dividends (716) (700) (680) Other Net cash provided by (used in) financing activities (642) $ (706) $ (1,063) Effect of exchange rate changes on cash and cash equivalents (64) (50) increase (decrease) in cash and cash equivalents 13 29 $ Cash and cash equivalents at beginning of period (192) $ 170 251 Cash and cash equivalents at end of period 443 273 $ 280 $ 251 $ 443 Supplemental cash flow disclosures: Interest paid Income taxes paid 405 $ 228 $ 209 256 337 $ 414 Supplemental cash flow disclosures of non-cash investing activities: Additions to properties included in accounts payable 161 $ 147 $ 136 Refer to Notes to Consolidated Financial Statements. 60 CF 

 

Kellogg Company and Subsidiaries CONSOLIDATED BALANCE SHEET (millions, except share data) 2016 2015 Current assets Cash and cash equivalents 280 S 251 Accounts receivable, net 1,231 1,344 Inventories 1,238 1,250 Other current assets 191 391 Total current assets 2,94 3,236 Property, net 3,569 3,621 Goodwill 5,166 4,968 Other intangibles, net 2,369 2,268 Investment in unconsolidated entities 438 456 Other assets 629 702 Total assets $ 15, 111 $ 5,251 Current liabilities Current maturities of long-term debt 631 1,266 Notes payable 438 ,204 Accounts payable 2,014 1.907 Other current liabilities 1,391 1,362 Total current liabilities 4,474 5,739 Long-term debt 6,698 5,275 Deferred income taxes 525 685 Pension liability 1,024 948 Other liabilities 464 468 Commitments and contingencies Equity Common stock, $.25 par value, 1,000,000,000 shares authorized Issued: 420,472,901 shares in 2016 and 420,315,589 shares in 2015 105 105 Capital in excess of par value 806 Retained earnings 745 6,571 Treasury stock, at cost 6,597 69,403,567 shares in 2016 and 70,291,514 shares in 2015 (3,997) Accumulated other comprehensive income (loss) (3,943) Total Kellogg Company equity (1,575) (1,378) Noncontrolling interests 1,910 2,128 Total equity 16 10 Total liabilities and equity 1,926 2,138 $ 15,111 $ 15,251 Refer to Notes to Consolidated Financial Statements. you will need to calculate Total Liabilities as Is not shown above. 

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Kellogg Company and Subsidiaries CONSOLIDATED BALANCE SHEET (millions, except share data) 2016 2015 Current assets Cash and cash equivalents 280 S 251 Accounts receivable, net 1,231 1,344 Inventories 1,238 1,250 Other current assets 191 391 Total current assets 2,94 3,236 Property, net 3,569 3,621 Goodwill 5,166 4,968 Other intangibles, net 2,369 2,268 Investment in unconsolidated entities 438 456 Other assets 629 702 Total assets $ 15, 111 $ 5,251 Current liabilities Current maturities of long-term debt 631 1,266 Notes payable 438 ,204 Accounts payable 2,014 1.907 Other current liabilities 1,391 1,362 Total current liabilities 4,474 5,739 Long-term debt 6,698 5,275 Deferred income taxes 525 685 Pension liability 1,024 948 Other liabilities 464 468 Commitments and contingencies Equity Common stock, $.25 par value, 1,000,000,000 shares authorized Issued: 420,472,901 shares in 2016 and 420,315,589 shares in 2015 105 105 Capital in excess of par value 806 Retained earnings 745 6,571 Treasury stock, at cost 6,597 69,403,567 shares in 2016 and 70,291,514 shares in 2015 (3,997) Accumulated other comprehensive income (loss) (3,943) Total Kellogg Company equity (1,575) (1,378) Noncontrolling interests 1,910 2,128 Total equity 16 10 Total liabilities and equity 1,926 2,138 $ 15,111 $ 15,251 Refer to Notes to Consolidated Financial Statements. you will need to calculate Total Liabilities as Is not shown above. 

 

Home Due Wed. Take home portion for Test #2 (20 points) 1 point each; except for inventory & A/R numbers: 0.5 point each. 10 / 25 In the spaces below, provide the ratios for Kellogg's using the financial statements provided. you will refer Be consistent with the format of ratios as shown for 2014 when rounding. to this for For Net Income, be sure to use "Net Income attributable to Kellogg Company" from the second Kellogg's income statement. Part, big Complete the following for Kellogg's: 2016 2015 2014 Debt Ratio % 81.2% as a percent to 1 decimal place Gross profit % for 3 years as a percent to 1 decimal place Net Profit Margin % 3 years as a percent to 1 decimal place Asset Turnover 0.96 as a number to 2 decimal places Return on Assets (ROA)% 4.2% as a percent to 1 decimal place Equity Multiplier 5.3 as a number to 1 decimal place Return on Equity (ROE)% 22.2% as a percent to 1 decimal place A/R turnover (# of times) 1 1.4 Times (number to 1 decimal places) # Days Sales in A/R 32.0 days (to 1 decimal place) Inventory turnover (# of times) 7.4 Times (number to 1 decimal places) # Days Sales in Inventory 49.3 days (to 1 decimal place)

 

In the spaces below, provide the ratios for Kellog's using the financial statements provided. Be consistent with the format of ratios as shown for 2014 when rounding. For Net Income, be sure to use "Net Income attributable to Kellogg Company" from Kellog's income statement. 

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Kellogg Company and Subsidiaries CONSOLIDATED BALANCE SHEET (millions, except share data) Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, net Operating lease right-of-use assets Goodwill Other intangibles, net Investment in unconsolidated entities 2020 2019 $ 435 $ 397 1,537 1,576 1,284 1,226 226 232 3,482 3,431 3,713 3,612 658 541 5,799 5,861 2,491 2,576 391 404 Other assets 1,462 1,139 Total assets 17,996 $ 17,564 Current liabilities Current maturities of long-term debt $ 627 $ 620 Notes payable 102 107 Accounts payable Current operating lease liabilities Accrued advertising and promotion Other current liabilities Total current liabilities Long-term debt Operating lease liabilities Deferred income taxes Pension liability Other liabilities 2,471 2,387 117 114 776 641 1,145 909 5,238 4,778 6,746 7,195 520 433 562 596 769 705 525 543 Commitments and contingencies Equity Common stock, $0.25 par value, 1,000,000,000 shares authorized Issued: 420,962,092 shares in 2020 and 420,829,201 shares in 2019 Capital in excess of par value Retained earnings Treasury stock, at cost 77,071,554 shares in 2020 and 79,286,171 shares in 2019 Accumulated other comprehensive income (loss) Total Kellogg Company equity Noncontrolling interests Total equity Total liabilities and equity 105 105 972 921 8,326 7,859 (4,559) (4,690) (1,732) (1,448) 3,112 2,747 524 567 3,636 3,314 $ 17,996 $ 17,564 Kellogg Company and Subsidiaries CONSOLIDATED BALANCE SHEET (millions, except share data) Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, net Operating lease right-of-use assets Goodwill Other intangibles, net Investment in unconsolidated entities 2020 2019 $ 435 $ 397 1,537 1,576 1,284 1,226 226 232 3,482 3,431 3,713 3,612 658 541 5,799 5,861 2,491 2,576 391 404 Other assets 1,462 1,139 Total assets 17,996 $ 17,564 Current liabilities Current maturities of long-term debt $ 627 $ 620 Notes payable 102 107 Accounts payable Current operating lease liabilities Accrued advertising and promotion Other current liabilities Total current liabilities Long-term debt Operating lease liabilities Deferred income taxes Pension liability Other liabilities 2,471 2,387 117 114 776 641 1,145 909 5,238 4,778 6,746 7,195 520 433 562 596 769 705 525 543 Commitments and contingencies Equity Common stock, $0.25 par value, 1,000,000,000 shares authorized Issued: 420,962,092 shares in 2020 and 420,829,201 shares in 2019 Capital in excess of par value Retained earnings Treasury stock, at cost 77,071,554 shares in 2020 and 79,286,171 shares in 2019 Accumulated other comprehensive income (loss) Total Kellogg Company equity Noncontrolling interests Total equity Total liabilities and equity 105 105 972 921 8,326 7,859 (4,559) (4,690) (1,732) (1,448) 3,112 2,747 524 567 3,636 3,314 $ 17,996 $ 17,564

Answer rating: 100% (QA)

Ratio Formula Value Value Rounded Return on Equity Net IncomeTotal EquityTotal EquityNet Income 0269... View the full answer