Comparing Two Companies in the Same Industry:

Kellogg’s and General Mills Refer to the Stockholders’ Equity section of the balance sheets of Kellogg’s as of December 31, 2008, and General Mills as of May 31, 2009.

Required 1. For each company, what are the numbers of shares of common stock authorized, issued, and outstanding as of the balance sheet date?

2. Did the balance of the Retained Earnings account of each company increase or decrease during the year? What factors can affect the Retained Earnings balance?
3. How does the total stockholders’ equity of each company compare to that of the other company? Does the difference mean that one company’s stock is more valuable than the other’s? Explain your answer.AppendixLO1