Comparing Two Companies in the Same Industry: Kellogg’s and General Mills This case should be completed after responding to the requirements in 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 Exhibit 13-6, prepare common-size comparative income statements for the years ending May 28, 2006, and May 29, 2005, 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 Exhibit 13-5, prepare common-size comparative balance sheets on May 28, 2006, and May 29, 2005, for General Mills. Round all percentages to the nearest onetenth 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?