Comparing Two Companies in the Same Industry: General Mills and Kellogg’s Refer to the fi nancial information for General Mills and Kellogg’s reproduced at the back of the book for the information needed to answer the following questions.

Required 1. Compute each company’s working capital at the end of the two most recent years.

Also, for each company, compute the change in working capital during the most recent year.

2. Compute each company’s current ratio at the end of the two most recent years.

Compute the percentage change in the ratio during the most recent year.

3. How do the two companies differ in terms of the accounts that made up their current assets at the end of the most recent year? What is the largest current asset each company reports on the balance sheet at the end of the most recent year?

4. On the basis of your answers to (2) and (3), comment on each company’s liquidity.

AppendixLO1