Refer to the financial statements and the accompanying notes of the Nestl Group given in Appendix A,

Refer to the financial statements and the accompanying notes of the Nestlé Group given in Appendix A, and of Cadbury plc, available online.

Required:

1. What title does each company call its income statement? Explain what the term consolidated means.

2. Which company had higher profit at the end of its fiscal year?*

3. Compute the total asset turnover ratio and the return on assets for each company for the most recent year. Which company is utilizing assets more effectively to generate sales and profit? Explain.

4. How much cash was provided by operating activities by each company during the most recent year? What was the percentage change in operating cash flows for each company during the most recent year? (Hint: Percentage change \(=[\) Current year amount - Prior year amount \(] \div\) Prior year amount.)

5. How much did each company pay in income taxes during the last fiscal year reported in the financial statements? Where did you find this information?

6. What segments does Cadbury report in the notes? What does Nestlé report about segments?