This case should be completed after responding to the requirements in Decision Case 13-2. Refer to the financial statement information of Kellogg's and General Mills reprinted at the back of the book.
Required
1. Using the format in Example 13-5, prepare common-size comparative income statements for the years ending May 30, 2010, and May 31, 2009, for General Mills. Round all percentages to the nearest one-tenth of a percent.
2. The common-size comparative income statements indicate the relative importance of items on the statement. Compare the common-size income statements of General Mills and Kellogg's. What are the most important differences between the two companies' income statements?
3. Using the format in Example 13-4, prepare common-size comparative balance sheets on May 30, 2010, and May 31, 2009, for General Mills. Round all percentages to the nearest one-tenth of a percent.
4. The common-size comparative balance sheets indicate the relative importance of items on the statement. Compare the common-size balance sheets of General Mills and Kellogg's. What are the most important differences between the two companies' balance sheets?