Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. decision case 10-2 comparing two companies: genera

Decision Case 10-2 Comparing Two Companies: General Mills and Kelloggs. Refer to General Mills balance...

70.2K

Verified Solution

Question

Accounting

Decision Case 10-2 Comparing Two Companies: General Mills and Kelloggs.

Refer to General Mills balance sheet and statement of cash flows at May 30, 2010, and Kelloggs balance sheet and statement of cash flows at December 31, 2010. Answer the following questions:

1. Calculate the debt-to-equity ratio for the two companies. How do the ratios compare? What does that tell you about the two companies?

2. Did the long-term liabilities of each company increase or decrease during the year? What were the most important changes? What impact do the changes have on the companies cash flows?

3. What were the most important sources and uses of cash disclosed in the financing activities portion of the statement of cash flows for each company? Kelloggs had both a positive and negative amounts in the financing activities section related to notes payable during the year. Why does the Long-Term Liability portion of the balance sheet indicate both a decrease and an increase?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Using the words below, explain this questions in a paragraph. According to the field of biology,...

Physics
1.2K views

A top-loading washing machine has a cylindrical tub that rotates about a vertical axis. The tub...

Basic Math
1.2K views

Consider the function:f(x) = 5x + 120x + 3x - 1Step 2 of 2: Locate...

Calculus
1.2K views

3 25 pt Minimize the function f x y z x 2y2 z2 subject to...

Calculus
1.2K views

Consider the following function f x x 1 if x 3 2x 22 if x...

Algebra
1.2K views

Write as a fraction 0 2

Accounting
1.2K views

D | Question 5 5 pts Ocho Corporation uses the following activity rates from its...

Accounting
1.2K views

Stacy, Inc., produces a product using a process that allows for substitution between two materials,...

Accounting
1.2K views

Refer 1040 Tax Form and Give information about above the line deductions?

Accounting
1.2K views

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for...

Accounting
1.2K views

The 2024 income statement of Anderson Medical Supply Company reported net sales of $10 million,...

Accounting
1.2K views

TastyKreme and Krispy Kake are both producers of baked goods, but each has followed a...