Question
E5-31 Analyzing and interpreting foreign currency translation effects. Kellogg Co. reports the following table and discussion in its 2010 10-k Before the effects of foreign
E5-31
Analyzing and interpreting foreign currency translation effects.
Kellogg Co. reports the following table and discussion in its 2010 10-k
Before the effects of foreign currency rates, total consolidated sales decreased by 1.3% during 2010. What geographic segment accounted for this overall declin
How did foreign currency exchange rates affect sales each of the geographic segments? What can we infer about the strength of the U.S. dollar vis--vis the currencies in Kelloggs segments?
Operating profit declined modestly on a consolidated basis. Which geographic segments exhibited the lowest and which the highest change in profit during the year? Explain.
Describe how the accounting for foreign exchange translation affects reported sales and profits
How does Kellogg Co. manage the risk related to its foreign exchange exposure? Describe the financial statement effects of this risk management activity.
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