Refer to the excerpts from Kellogg’s annual report reprinted at the back of the book and identify where each of the following users of accounting information would first look to answer their respective questions about Kellogg’s.
1. Investors: How much did the company earn for each share of stock that I own? Were any dividends paid, and how much was reinvested in the company?
2. Potential investors: What amount of earnings can I expect to see from Kellogg’s in the near future?
3. Suppliers: Should I extend credit to Kellogg’s? Does it have sufficient cash or cash like assets to repay accounts payable?
4. IRS: How much does Kellogg’s owe for taxes?
5. Bankers: What is Kellogg’s long-term debt? Should I make a new loan to the company?