Evaluate the percentage change in sales and net cash flow

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Reference no: EM132874

Question :

Kellogg Company has its headquarters in Battle Creek, Michigan. The company builds and sells ready-to-eat breakfast cereals and convenience foods including cookies, toaster pastries, and cereal bars.

Selected data from Kellogg Company's 2011 annual report as follows (dollar amounts in millions).

2011 2010 2009

Sales $13,198.00

$12,397.00

$12,575.00

Gross profit % 41.28

42.66

42.87

Operating profit 1,976.00

1,990.00

2,001.00

Total cash flow less capital expenditures 1,001.00

534.00

1,266.00

Total earnings 1,231.00

1,247.00

1,212.00

In its annual reports, Kellogg Company has shown that it plans to achieve sustainability of its operating results with operating principles that emphasize profit-rich, sustainable sales growth, as well as cash flow and return on invested capital. Kellogg believes its steady earnings growth, continued investment and strong cash flow during a multi-year period shows the strength and flexibility of its business model.

(a)

Evaluate the percentage change in sales, net cash flow less capital expenditures, operating profit, and total earnings from year to year for the years presented

Reference no: EM132874

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