Kellogg Company (K) produces, markets, and distributes cereal and food products including Cheez-It, Coco Pops, Rice Krispies, and Pringles. The following partial income statements (in millions) were adapted from recent financial statements.

Line Item Description	Year 2	Year 1
Sales	$14,181	$13,770
Cost of goods sold	(9,621)	(9,043)
Gross profit	$ 4,560	$ 4,727
Selling and administrative expenses	(2,808)	(2,966)
Operating income	$ 1,752	$ 1,761

Question Content Area

1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.

Kellogg Company
Common-Sized Income Statement
Years 1 and 2

Line Item Description	Year 2	Year 1	Increase (Decrease)
Sales	Sales%	Sales%	Sales%
Cost of goods sold	Cost of goods sold%	Cost of goods sold%	Cost of goods sold%
Gross profit	Gross profit%	Gross profit%	Gross profit%
Selling and administrative expenses	Selling and administrative expenses%	Selling and administrative expenses%	Selling and administrative expenses%
Operating income	Operating income%	Operating income%	Operating income%

Answer rating: 100% (QA)

Income statement data for Kellogg Company in millions incomestatementdata Sales 13770 14181 Cost ... View the full answer