Question
Kellogg Company has its headquarters in Battle Creek, Michigan. The company manufactures and sells ready-to-eat breakfast cereals and convenience foods including cookies, toaster pastries, and
Kellogg Company has its headquarters in Battle Creek, Michigan. The company manufactures and sells ready-to-eat breakfast cereals and convenience foods including cookies, toaster pastries, and cereal bars. Selected data from Kellogg Companys 2014 annual report follows (dollar amounts in millions).
2014 | 2013 | 2012 | |||||
Sales | $14,580 | $14,792 | $14,197 | ||||
Gross profit % | 34.73 | 41.26 | 38.28 | ||||
Operating profit | 1,024 | 2,837 | 1,562 | ||||
Net cash flow less capital expenditures | 1,211 | 1,170.00 | 1,225.00 | ||||
Net earnings | 633 | 1808 | 961 |
In its annual reports, Kellogg Company has indicated that it plans to achieve sustainability of its operating results with operating principles that emphasize profit-rich, sustainable sales growth, as well as cash flow and return on invested capital. Kellogg believes its steady earnings growth, strong cash flow, and continued investment during a multi-year period demonstrates the strength and flexibility of its business model.
(a) Compute the percentage change in sales, operating profit, net cash flow less capital expenditures, and net earnings from year to year for the years presented.
% Change 2014 | % Change 2013 | ||||
Sales | | | |||
Operating profit | | | |||
Net cash flow less capital expenditures | | | |||
Net earnings | | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started