Question

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

Selected data from Kellogg Company’s recent annual report follows (dollar amounts in millions).

		Current Year		Prior Year		2 Years Ago
Sales		$14,580		$14,792		$14,197
Gross profit %		34.73		41.26		38.28
Operating profit		1,024		2,837		1,562
Net cash flow less capital expenditures		1,211		1,170		1,225
Net earnings		633		1808		961

In its annual reports, Kellogg Company has indicated 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, strong cash flow, and continued investment during a multi-year period demonstrates the strength and flexibility of its business model.

Compute the percentage change in sales, operating profit, net cash flow less capital expenditures, and net earnings from year to year for the years presented. (Round answers to 2 decimal places, e.g. 52.75%. If an amount reduces the account balance then enter with negative sign.)

		% Change Current Year		% Change Last Year
Sales		%		%
Operating profit		%		%
Net cash flow less capital expenditures		%		%
Net earnings		%		%

Answer 1