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Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10-K report dated January 2, 2016 ($ millions).

Revenue	$13,750	Earnings from continuing operations	$681
Interest expense	245	Capital expenditures (CAPEX)	553
Tax expense	208	Total debt	7,560
Amortization expense	8	Average assets	15,408
Depreciation expense	526

a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/Interest expenses, Debt/EBITDA, CAPEX/Depreciation Expense.

b. Using the ratios calculated in part a., estimate the credit rating that Moody's might assign to Kellogg. Refer to Exhibit 7.6 in the textbook for ratio definitions and credit ratings. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%)

	Ratio	Moody's rating
EBITA/Avg. assets	Answer	AnswerAaaAaABaaBaBCaaCaC
EBITA margin	Answer	AnswerAaaAaABaaBaBCaaCaC
EBITA/Int. expense	Answer	AnswerAaaAaABaaBaBCaaCaC
Debt/EBITDA	Answer	AnswerAaaAaABaaBaBCaaCaC
CAPEX/Dep. expense	Answer	AnswerAaaAaABaaBaBCaaCaC