Kellogg Company is the world"s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. The following items were taken from its 2009 income statement and balance sheet. All dollars are in millions.
|
____ Retained earnings
|
$5,481
|
____ Long-term debt
|
$4,835
|
|
____ Cost of goods sold
|
7,184
|
____ Inventories
|
910
|
|
____ Selling and
|
3,390
|
____ Net sales
|
12,575
|
|
administrative expenses
|
334
|
____ Accounts payable
|
1,077
|
|
____ Cash
|
44
|
____ Common stock
|
105
|
|
____ Notes payable
|
295
|
____ Income tax expense
|
476
|
|
____ Interest expense
|
|
____ Other expense
|
22
|
Instructions
Perform each of the following.
(a) In each case identify whether the item is an asset (A), liability (L), stockholders" equity (SE), revenue (R), or expense (E).
(b) Prepare an income statement for Kellogg Company for the year ended December 31, 2009.