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.

Suppose the following items were taken from its 2014 income statement and balance sheet. (All dollars are in millions.)

____ Retained earnings $5,481 ____ Bonds payable $ 4,835 ____ Cost of goods sold 7,184 ____ Inventory 910 ____ Selling and ____ Sales revenue 12,575 administrative expenses 3,390 ____ Accounts payable 1,077 ____ Cash 334 ____ Common stock 105 ____ Notes payable 44 ____ Income tax expense 498 ____ Interest expense 295 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, 2014.

AppendixLO1