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Financial Accopunting

In: Business and Management

Submitted By smartfun524
Words 755
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Case Discussion 9-1 1 Current Ratio of General Mills Current Assets Current Liabilities Current Ratio 2010 3480.00 3769.10 0.92 2009 3534.00 3606.60 0.98

Current Ratios are less than 1 for both the years. Hence, company will not be able to pay off their short term liabilities with their current assets

2 Current Assets Current Liabilities Current Ratio

Kelloggs 2010 2195 3184 0.69

2009 2558 2288 1.12

General Mills 2010 2009 3480.00 3534.00 3769.10 3606.60 0.92 0.98

In both the years, General Mills have higher current liabilities than the Kellogg's Case Discussion 10-2 1 Total Liabilities Shareholder's Equity Debt to Equity Ratio Kelloggs 2010 9693 2154 4.50 General Mills 2009 2010 2009 8925 12030.90 12058.30 2275 5402.90 5172.30 3.92 2.23 2.33

Kellogg's has got a better debt to equity ratio during both the years 2010 and 2009 Kellogg's has more debts than equity compared to General Mills. This means that interest expenses of Kellogg's is more than the interest expenses of General Mills. This also means the assets of the Kellogg's has been acquired more by raising debts than share capital. 2 Long term Liabilities Kelloggs 2010 2009 6509 6637 General Mills 2010 2009 8261.80 8852.30

Important Changes For Kellogg's, Long term Debts and Deferred Income tax has increased from 2009 to 2010, while Pension Liabilities and other liabilities decreased. The increase was marginally lesser than the decrease in the liabilities. Thus, the long therm Liabilities decreased effectively from 2009 to 2010. For General Mills, the decrease in the long term liabilities was majorly contributed by the decrease in the long term debt and Deferred Income Tax

3 Kellogg's - Cash Flows from Financing Activities Main Cash Inflows Issuance of Long Term Debt Main Cash Outflows Common Stock Repurchase Cash Dividends General Mills - Cash Flows from Financing Activities Main...

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