Accouting questions about kellogs annual report 44.Kellogg’s retained earnings b
ID: 2488365 • Letter: A
Question
Accouting questions about kellogs annual report
44.Kellogg’s retained earnings balance is lower at the end of 2014 than at the end of the previous year? What is the main explanation for this?
45. (A) How much cash was generated by Kellogg’s from issuing stock in the 2014 fiscal year?
(B) How much cash was used to repurchase shares of stock in the 2013 fiscal year?
46. How does Kellogg’s account for its research and development costs?
47. How did the adoption of the new accounting standard issued by the FASB in July 2013, effect Kellogg’s financial statements
48. How much of the acquisition cost of Pringle’s was allocated to Goodwill?
49. How much was Kellogg’s authorized to pay out in order to repurchase its stock up until the start of 2016?
50. What was Kellogg’s times interest earned ratio for the year ended 1-3-15?
here is thel link to the annual report: http://s1.q4cdn.com/765937029/files/doc_financials/annual_reports/K_2014-Annual-Report_v001_q725z5.pdf
Explanation / Answer
44.
The reason of lower Retained Earning is paying more dividend than earning which reduce overall retained earning as you can see below. Earning is 1.76 but DPS is 1.90.
Net income attributable to Kellogg Company $ 632 $ 1,807 $ 961
Per share amounts: Basic $ 1.76 $ 4.98 $ 2.68
Diluted $ 1.75 $ 4.94 $ 2.67
Dividends per share $ 1.90 $ 1.80 $ 1.74
45. (A) How much cash was generated by Kellogg’s from issuing stock in the 2014 fiscal year?
(millions)
$217
(B) How much cash was used to repurchase shares of stock in the 2013 fiscal year?
(millions)
$544
46. How does Kellogg’s account for its research and development costs?
Kellogg’s account for its research and development costs are expensed as incurred and are classified in SGA expense (Selling, General, and Administrative Expenses)
47. How did the adoption of the new accounting standard issued by the FASB in July 2013, effect Kellogg’s financial statements
As per annual report "The Company adopted the revised guidance in 2014 with no significant impact to the Consolidated Financial Statements".
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