Create a Cash flow statement for the years 2017 and 2018 from the information provided, using the income statement and balance sheet. Assumptions: Assume the
Create a Cash flow statement for the years 2017 and 2018 from the information provided, using the income statement and balance sheet.
Assumptions:
Assume the current Kellogg share price is $64 per share.
The 10-year US Treasury yield to maturity is .60%.
The adjusted beta is .53
Assume the return of the overall market is 6%.
Income Statement
Balance Sheet
Kellogg Income Statement $ Millions Net sales Cost of goods sold ex-Depreciation Depreciation Expense Selling, general and administrative expense Operating profit Interest expense Other income (expense), net Income before income taxes Income taxes Net income Dividends per share Hist 2017 $ 14,580 (9,014) (503) (4,039) 1,024 (209) Hist 2018 $ 13,525 (8,310) (534) (3,590) 1,091 (227) (91) 773 (159) 614 1.98 Hist 2019 $ 13,014 (7,742) (517) (3,360) 1,395 (406) (62) 927 (233) 694 2.04 Proj 2020 13,274 (7,965) (518) (3,451) 1,341 (406) Proj 2021 13,540 (8,124) (519) (3,520) 1,376 (406) Proj 2022 13,811 (8,286) (523) (3,591) 1,411 (406) 10 0 970 (291) 1,005 (301) 825 (186) 639 1.90 935 (280) 654 2.08 679 703 2.12 2.16 Selected Other Items Dividends Paid Capital Expenditures 680 582 700 553 716 507 730 744 758 531542552 Hist Hist 2017 Hist 2018 2019 Proj 2020 Proj 2021 Proj 2022 443 1,276 1,279 342 3,340 280 1,261 1,274 199 3,015 280 1,286 1,300 203 3,069 280 1,312 1,326 207 3,125 3,769 251 1,344 1,250 391 3,236 3,621 4,968 2,268 456 702 15,251 280 1,231 1,238 191 2,940 3,569 5,166 2,369 438 629 15,111 4,971 5,166 2,295 5,166 2,369 438 629 11,617 5,166 2,369 438 629 11,727 438 629 11,671 777 15,153 607 828 Kellogg Balance Sheet S Millions Excess Cash (Projected Years Only) Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, Plant & Equipment, Net Goodwill Other intangibles, net Investment in unconsolidated entities Other Assets Total assets Current Liabilities Additional Borrowings (Projected Years Only) Current maturities of long-term debt Notes payable Accounts payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes Pension liability Other liabilities Total Liabilities Equity Common stock, $.25 par value Capital in excess of par value Retained earnings Treasury stock, at cost 69,403,567 shares in 2016 and 70,291,514 s Accumulated other comprehensive income (loss) Total Kellogg Company equity Noncontrolling interests Total equity Total liabilities and equity 1,528 631 438 2,014 1,391 4,474 6,698 1,266 1,204 1,907 1,362 5,739 5,275 685 946 468 13,113 1,401 4,364 5,935 725 438 1,991 1,410 4,564 6,067 565 1,024 464 12,684 275 438 2,072 1,478 4,262 5,022 320 438 2,031 1,449 4,238 5,342 609 1,024 464 11,677 621 726 777 500 12,302 1,024 464 13,185 1,024 464 11,394 105 806 105 806 105 806 105 678 6,689 (3,470) (1,213) 2,789 62 2,851 15,153 105 745 6,597 (3,943) (1,376) 2,128 10 2,138 15,251 105 806 6,571 (3,997) (1,575) 1,910 16 1,926 15,111 (3,997) (3,997) (1,575) (1,575) (4,661) (4,661) 16 16 (4,645) (4,645) 8,0397,032 (3,997) (1,575) (4,661) 16 (4,645) 6,749 Kellogg Income Statement $ Millions Net sales Cost of goods sold ex-Depreciation Depreciation Expense Selling, general and administrative expense Operating profit Interest expense Other income (expense), net Income before income taxes Income taxes Net income Dividends per share Hist 2017 $ 14,580 (9,014) (503) (4,039) 1,024 (209) Hist 2018 $ 13,525 (8,310) (534) (3,590) 1,091 (227) (91) 773 (159) 614 1.98 Hist 2019 $ 13,014 (7,742) (517) (3,360) 1,395 (406) (62) 927 (233) 694 2.04 Proj 2020 13,274 (7,965) (518) (3,451) 1,341 (406) Proj 2021 13,540 (8,124) (519) (3,520) 1,376 (406) Proj 2022 13,811 (8,286) (523) (3,591) 1,411 (406) 10 0 970 (291) 1,005 (301) 825 (186) 639 1.90 935 (280) 654 2.08 679 703 2.12 2.16 Selected Other Items Dividends Paid Capital Expenditures 680 582 700 553 716 507 730 744 758 531542552 Hist Hist 2017 Hist 2018 2019 Proj 2020 Proj 2021 Proj 2022 443 1,276 1,279 342 3,340 280 1,261 1,274 199 3,015 280 1,286 1,300 203 3,069 280 1,312 1,326 207 3,125 3,769 251 1,344 1,250 391 3,236 3,621 4,968 2,268 456 702 15,251 280 1,231 1,238 191 2,940 3,569 5,166 2,369 438 629 15,111 4,971 5,166 2,295 5,166 2,369 438 629 11,617 5,166 2,369 438 629 11,727 438 629 11,671 777 15,153 607 828 Kellogg Balance Sheet S Millions Excess Cash (Projected Years Only) Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, Plant & Equipment, Net Goodwill Other intangibles, net Investment in unconsolidated entities Other Assets Total assets Current Liabilities Additional Borrowings (Projected Years Only) Current maturities of long-term debt Notes payable Accounts payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes Pension liability Other liabilities Total Liabilities Equity Common stock, $.25 par value Capital in excess of par value Retained earnings Treasury stock, at cost 69,403,567 shares in 2016 and 70,291,514 s Accumulated other comprehensive income (loss) Total Kellogg Company equity Noncontrolling interests Total equity Total liabilities and equity 1,528 631 438 2,014 1,391 4,474 6,698 1,266 1,204 1,907 1,362 5,739 5,275 685 946 468 13,113 1,401 4,364 5,935 725 438 1,991 1,410 4,564 6,067 565 1,024 464 12,684 275 438 2,072 1,478 4,262 5,022 320 438 2,031 1,449 4,238 5,342 609 1,024 464 11,677 621 726 777 500 12,302 1,024 464 13,185 1,024 464 11,394 105 806 105 806 105 806 105 678 6,689 (3,470) (1,213) 2,789 62 2,851 15,153 105 745 6,597 (3,943) (1,376) 2,128 10 2,138 15,251 105 806 6,571 (3,997) (1,575) 1,910 16 1,926 15,111 (3,997) (3,997) (1,575) (1,575) (4,661) (4,661) 16 16 (4,645) (4,645) 8,0397,032 (3,997) (1,575) (4,661) 16 (4,645) 6,749
