Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars.

The following items were taken from its 2004 income statement and balance sheet. All dollars are in millions.

____ Retained earnings $2,701.3 Long-term debt $3,892.6 ____ Cost of goods sold 5,298.7 _. Inventories 681.0 ____ Selling and ___ Net sales 9,613.9 administrative expenses 2,634.1 ____. Accounts payable 767.2 mek Cash 417.4 ___. Common stock 103.8 _____ Notes payable 709.7 ____ Income tax expense 475.3 ____ Interest expense 308.6 __ Other expense 6.6 Instructions Perform each of the following.

(a) In each case identify whether the item is an asset (A), liability (L), stockholders’ equity

(SE), revenue (R), or expense (E).

(b) Prepare an income statement for Kellogg Company for the year ended December 31, 2004.