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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 Description | Year 2 | Year 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 |
Question Content Area
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
Line Item Description | Year 2 | Year 1 | Increase (Decrease) |
---|---|---|---|
Sales | % | % | % |
Cost of goods sold | % | % | % |
Gross profit | % | % | % |
Selling and administrative expenses | % | % | % |
Operating income | % | % | % |
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