Calculating Ratios and Estimating Credit Rating The following data are from Kelloggs 10-K report dated December 29, 2018 ($ millions).

Revenue	$13,547	Earnings from continuing operations	$1,344
Interest expense	287	Capital expenditures (CAPEX)	578
Tax expense	181	Total debt	8,893
Amortization expense	23	Average assets	17,066
Depreciation expense	493

a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/ Interest expense, Debt/EBITDA, CAPEX/Depreciation Expense. Definitions for these ratios are in Exhibit 7.4.

b. Refer to Exhibit 7.4 and the ratios you calculated in part a. Estimate the credit rating that Moodys might assign to Kellogg. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%)

	Ratio	Moody's rating
EBITA/Avg. assets
EBITA margin
EBITA/Int. expense
Debt/EBITDA
CAPEX/Dep. expense