Kellogg company is the worlds leading producer of ready to eat cereal products. In recent years, the company has taken numerous steps aimed at improving its profitability nd earnings per share. Presented below are some basic facts for kelloggs.

2011 2010

Net sales 13198 12397

Net income 1229 1240

Total assets 11901 11847

Total liabilities 10139 9693

Common stock, .25 par value 105 105

Capital in excess of par vlue 522 495

Retained earnings 6721 6122

Tresury stock at cost 3,130 2,650

Number of shares outstaning in millions 357 366

What are some of the reasons that management purchases its own stock?

Explain how earnings per share might be affected by treasury stock transactions

Calculate the ratio of debt to assets for 2010 and 2011, and discuss the implications of the change.