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Kellogg Company (K) produces, markets, and distributes cereal and food products including Cheez-It, Coco Pops, Rice Krispies, and Pringles. The following partial income statements (in

Kellogg Company (K) produces, markets, and distributes cereal and food products including Cheez-It, Coco Pops, Rice Krispies, and Pringles. The following partial income statements (in millions) were adapted from recent financial statements.

Line Item DescriptionYear 2Year 1
Sales$14,181 $13,770 
Cost of goods sold(9,621)(9,043)
Gross profit$ 4,560 $ 4,727 
Selling and administrative expenses(2,808)(2,966)
Operating income$ 1,752 $ 1,761 

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1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.

Line Item DescriptionYear 2Year 1Increase (Decrease)
Kellogg Company
Common-Sized Income Statement
Years 1 and 2
Sales%%%
Cost of goods sold%%%
Gross profit%%%
Selling and administrative expenses%%%
Operating income%%%

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