General Mills’s and Kellogg’s Current Liabilities Refer to General Mills’s and Kellogg’s annual reports reprinted at the back of the book. Using the companies’ balance sheets and accompanying notes, write a response to the following questions.

Required 1. Determine General Mills’s current ratio for fiscal years 2006 and 2005. What do the ratios indicate about the liquidity of the company?

2. How do the current liabilities of Kellogg’s and General Mills compare?

3. Refer to the companies’ notes. Do the companies have any contingent liabilities for lawsuits or litigation? If so, how were these contingent liabilities treated on the financial statements?