Suppose you have been presented with the following selected information taken from the financial statements of Kellogg Company.

Instructions
(a) Calculate each of the following ratios for 2014 and 2013.
(1) Current ratio.
(2) Free cash flow.
(3) Debt to assets ratio.
(4) Times interest earned.
(b) Comment on the trend in ratios.
(c) Read the company€™s note on leases. If the operating leases had instead been accounted for like a purchase, assets and liabilities would increase by approximately $584 mil-lion. Recalculate the debt to assets ratio for 2014 in light of this information, and discuss the implications foranalysis.

KELLOGG COMPANY Balance Sheet (partial) December 31 in millions) 2014 2,717 8,680 $11,397 2013 2,427 8,287 $10,714 Total current assets Noncurrent assets Total assets Current liabilities Long-term liabilities 4,044 4,827 8,871 2,526 $11,397 4,020 4,625 8,645 2,069 S10,714 Total liabilities Shareholders' equity Total liabilities and shareholders' equity Other information: 2014 2013 2 Net income (loss) Income tax expense Interest expense Cash provided by operations Capital expenditures Cash dividends 1,103 319 1,503 472 475 1,004 467 307 1,410 453 450