Question Description
General Mills Inc. (GIS) produces, markets, and distributes cereal and food products including Cheerios, Wheaties, Cocoa Puffs, Yoplait, and Pillsbury branded products. The following partial income statements (in millions) were adapted from recent financial statements.
| Year 1 | Year 2 | ||||||
| Sales | $15,620 | $15,740 | |||||
| Cost of goods sold | (10,056) | (10,313) | |||||
| Gross profit | $ 5,564 | $ 5,427 | |||||
| Selling and administrative expenses | (2,801) | (2,753) | |||||
| Operating income | $ 2,763 | $ 2,674 | |||||
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
| General Mills Inc. | |||
| Common-Sized Income Statement | |||
| Year 1 and 2 | |||
| Year 1 | Year 2 | Increase (Decrease) | |
| Sales | |||
| Cost of goods sold | |||
| Gross profit | |||
| Selling and administrative expenses | |||
| Operating income | |||
2. What is the primary cause of the decrease in operating income in Year 2?General Mills Inc. (GIS) produces, markets, and distributes cereal and food products including Cheerios, Wheaties, Cocoa Puffs, Yoplait, and Pillsbury branded products. The following partial income statements (in millions) were adapted from recent financial statements.
| Year 1 | Year 2 | ||||||
| Sales | $15,620 | $15,740 | |||||
| Cost of goods sold | (10,056) | (10,313) | |||||
| Gross profit | $ 5,564 | $ 5,427 | |||||
| Selling and administrative expenses | (2,801) | (2,753) | |||||
| Operating income | $ 2,763 | $ 2,674 | |||||
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
| General Mills Inc. | |||
| Common-Sized Income Statement | |||
| Year 1 and 2 | |||
| Year 1 | Year 2 | Increase (Decrease) | |
| Sales | |||
| Cost of goods sold | |||
| Gross profit | |||
| Selling and administrative expenses | |||
| Operating income | |||
2. What is the primary cause of the decrease in operating income in Year 2?General Mills Inc. (GIS) produces, markets, and distributes cereal and food products including Cheerios, Wheaties, Cocoa Puffs, Yoplait, and Pillsbury branded products. The following partial income statements (in millions) were adapted from recent financial statements.
| Year 1 | Year 2 | ||||||
| Sales | $15,620 | $15,740 | |||||
| Cost of goods sold | (10,056) | (10,313) | |||||
| Gross profit | $ 5,564 | $ 5,427 | |||||
| Selling and administrative expenses | (2,801) | (2,753) | |||||
| Operating income | $ 2,763 | $ 2,674 | |||||
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
| General Mills Inc. | |||
| Common-Sized Income Statement | |||
| Year 1 and 2 | |||
| Year 1 | Year 2 | Increase (Decrease) | |
| Sales | |||
| Cost of goods sold | |||
| Gross profit | |||
| Selling and administrative expenses | |||
| Operating income | |||
2. What is the primary cause of the decrease in operating income in Year 2?General Mills Inc. (GIS) produces, markets, and distributes cereal and food products including Cheerios, Wheaties, Cocoa Puffs, Yoplait, and Pillsbury branded products. The following partial income statements (in millions) were adapted from recent financial statements.
| Year 1 | Year 2 | ||||||
| Sales | $15,620 | $15,740 | |||||
| Cost of goods sold | (10,056) | (10,313) | |||||
| Gross profit | $ 5,564 | $ 5,427 | |||||
| Selling and administrative expenses | (2,801) | (2,753) | |||||
| Operating income | $ 2,763 | $ 2,674 | |||||
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
| General Mills Inc. | |||
| Common-Sized Income Statement | |||
| Year 1 and 2 | |||
| Year 1 | Year 2 | Increase (Decrease) | |
| Sales | |||
| Cost of goods sold | |||
| Gross profit | |||
| Selling and administrative expenses | |||
| Operating income | |||
2. What is the primary cause of the decrease in operating income in Year 2?1. Kellogg Company (K) produces, markets, and distributes cereal and food products including Cheez-It, Coco Pops, Rice Krispies, and Pringles. The following partial income statements (in millions) were adapted from recent financial statements.
| Year 1 | Year 2 | ||||||
| Sales | $13,014 | $12,923 | |||||
| Cost of goods sold | (8,259) | (7,901) | |||||
| Gross profit | $ 4,755 | $ 5,022 | |||||
| Selling and administrative expenses | (3,360) | (3,076) | |||||
| Operating income | $ 1,395 | $ 1,946 | |||||
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
| Kellogg Company | |||
| Common-Sized Income Statement | |||
| Year 1 and 2 | |||
| Year 1 | Year 2 | Increase (Decrease) | |
| Sales | |||
| Cost of goods sold | |||
| Gross profit | |||
| Selling and administrative expenses | |||
| Operating income | |||
2. General Mills Inc. (GIS) produces, markets, and distributes cereal and food products including Cheerios, Wheaties, Cocoa Puffs, Yoplait, and Pillsbury branded products. The following partial income statements (in millions) were adapted from recent financial statements.
| Year 1 | Year 2 | ||||||
| Sales | $15,620 | $15,740 | |||||
| Cost of goods sold | (10,056) | (10,313) | |||||
| Gross profit | $ 5,564 | $ 5,427 | |||||
| Selling and administrative expenses | (2,801) | (2,753) | |||||
| Operating income | $ 2,763 | $ 2,674 | |||||
1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.
| General Mills Inc. | |||
| Common-Sized Income Statement | |||
| Year 1 and 2 | |||
| Year 1 | Year 2 | Increase (Decrease) | |
| Sales | |||
| Cost of goods sold | |||
| Gross profit | |||
| Selling and administrative expenses | |||
| Operating income | |||
2. What is the primary cause of the decrease in operating income in Year 2?
