Decision Case 10-2 Comparing Two Companies: General Mills and Kelloggs Refer to General Mills balance sheet and statement of cash flows at Mat 30, 2010, and Kelloggs balance sheet and statement of cash flows at December 31, 2010. Answer the following questions:

1. Calculate the debt-to-equity ratio for the two companies. How do the ratios compare? What does that tell you about the two companies?

2. Did the long-term liabilities of each company increase or decrease during the year? What were the most important changes? What impact do the changes have on the companies cash flows?

3. What were the most important sources and uses of cash flows for each company? Kelloggs had a both positive and negative