Financial Statement Analysis Cases Case 1: Kellogg Company Kellogg Company is the world's leading producer of ready-to-eat cereal products. In recent years, the company has taken nu- merous steps aimed at improving its profitability and eamings per share. Presented below are some basic facts for Kellogg 2013 $14.792 (in millions) Net sales Net income Total assets Total liabilities Common stock, S0.25 par value Capital in excess of par value Retained eamings Treasury stock, at cost Number of shares outstanding (in millions) 2014 $14.580 632 15,153 12,302 1,807 15,474 11,867 105 626 6,689 3,470 358 6,749 2,999 363 Instructions (a) What are some of the reasons that management purchases its own stock? (b) Explain how eamings per share might be affected by treasury stock transactions. (c) Calculate the debt to assets ratio for 2013 and 2014, and discuss the implications of the change