ES-38. For eign Currency Impact Kellogg included the following note in its fiscal 2018 10-K report ($ millions).

Adjusted net income attributable to Kellogg ... • . . • .... •. . . .. • .... . ..

Foreign currency impact ................................ . .... . . .

Currency-neutral adjusted net income attributable to Kellogg ... . .. .. . . .

$1,510 4

$1,506

a. Assume the fore ign currency impact related entirely to foreign sales. Determine whether the $US strengthened or weakened vis-a-vis the currencies in which Kellogg conducts business.

b. Assume the foreign currency impact related entirely to purchases of goods from fore ign vendors.

Determine whether the $US strengthened or weakened vis-a-vis the currencies in which Kellogg conducts business.

c. As an analyst, how would we treat this foreign currency impact in our analysis of Kellogg?

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