Kellogg Company is the world\'s leading producer of ready-to-eat cereal and a le
ID: 2418390 • Letter: K
Question
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. Suppose the following items were taken from its 2014 income statement and balance sheet. (All dollars are in millions.) (a) In each case identify whether the item is an asset, liability, stockholders' equity, revenue, or expense. Retained earnings 5,481 Cost of goods sold 7,184 Selling and administrative expenses 3,390 Cash 334 Notes payable 44 Interest expense 295 Bonds payable 4,835 Inventory 910 Sales revenue 12,575 Accounts payable 1,077 Common stock 105 Income tax expense 512 (b) Prepare an income statement for Kellogg Company for the year ended December 31, 2014.Explanation / Answer
A) Identification of an item
Retained earnings : Share holders equity
Cost of goods sold : Expense
Selling & administrative exp : Expense
cash : Asset
notes payable : Liability
interest expense : Expense
Bonds payable : Liability
Inventory : Asset
Sales revenue : Revenue
Accounts payable : Liability
Common stock : Share holders equity
Income tax expense : Expense
B). Income statement for Kellogg company for the year ended December 31st 2014
Expense (In millions) Income (In millions)
Cost of goods sold 7184 Sales revenue 12575
Selling & Administrative exp 3390 Inventory 910
Interest exp 295
Income tax expense 512
Profit (Transfer to share holders) (BF) 2104
13485 13485
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