Comparing Two Companies in the Same Industry: Kellogg’s and General Mills Cash Flow Adequacy Refer to the statement of cash flows for both Kellogg’s and General Mills for the most recent year and any other pertinent information reprinted at the back of this book.

Required 1. Compute each company’s cash flow adequacy ratio for the most recent year.

2. What do the ratios computed in (1) tell you about each company’s cash flow adequacy? Which company’s ratio is higher?