KELLOGG COMPANY

CONDESED BALANCE SHEET

HORIZONTAL ANALUSI
Dec-31 Increase (decrease)
(IN MILLIONS) during 2001
Assets 2001 2000 amount percent
Current Assets
Cash and short-term investments 231.8 204.4 27.4 13.4%
Accounts receivable, net 762.3 685.3 77.0 11.2%
Inventories 574.5 443.8 130.7 29.5%
Prepaid expenses and other current assets 333.4 283.6 49.8 17.6%
Total current assets 1,902.0 1,617.1 284.9 17.6%
Property,assets, net 2,952.8 2,526.9 425.9 16.9%
intangibles and other assets 5,513.8 742.0 4,771.8 643.1%
total assets 10,368.6 4,886.0 5,482.6 112.2%

liabilities and stockholder's equity

current liabilities 2,207.6 2,482.3 - 274.7 -11.1%
long-term liabilities 7,289.5 1,506.2 5,783.3 384.0%
stockholders' equity-common 871.5 897.5 - 26.0 2.9%
total liabilities and stockholder's equity 10,368.6 4,886.0 5,482.6 112.2%

KELLOGG COMPANY
CONDESED INCOME STATEMENT
HORIZONTAL ANALYSIS
Dec-31 Increase (decrease)
(IN MILLIONS) during 2001
2001 2000 amount percent
net sales 7,548.4 6,086.7 - 1,461.7 -24.0%
cogs 4,211.4 3,401.7 - 809.7 -23.8%
gross profit 3,337.0 2,685.0 - 652.0 -24.3%
selling and administrative expenses 2,135.8 1,608.7 - 527.1 -32.8%
nonrecurring charges 33.3 86.5 53.2 61.5%
income from operations 1,167.9 989.8 - 178.1 -18.0%
interest expense 351.5 137.5 - 214.0 -155.6%
other income (expense (net) - 23.9 15.4 39.3 255.2%
income before taxes 792.5 867.7 75.2 8.7%
income tax expense 317.9 280.0 - 37.9 -13.5%
net income 474.6 587.7 113.1 19.2%
KELLOGG COMPANY
CONDESED BALANCE SHEET
VERTICAL ANALYSIS
Dec-31
(IN MILLIONS) 2001 2000
Assets AMOUNT PERCENT AMOUNT PERCENT
Current Assets
Cash and short-term investment 231.8 2.2 204.4 4.2
Accounts receivable, net 762.3 7.4 685.3 14.0
Inventories 574.5 5.5 443.8 9.1
Prepaid expenses and other curr 333.4 3.2 283.6 5.8
Total current assets 1,902.0 18.3 1,617.1 33.1
Property,assets, net 2,952.8 28.5 2,526.9 51.7
intangibles and other assets 5,513.8 53.2 742.0 15.2
total assets 10,368.6 100.0 4,886.0 100.0

liabilities and stockholder's equity

current liabilities 2,207.6 21.3 2,482.3 50.8
long-term liabilities 7,289.5 70.3 1,506.2 30.8
stockholders' equity-common 871.5 8.4 897.5 18.4
total liabilities and stockholder's 10,368.6 100.0 4,886.0 100.0

KELLOGG COMPANY
CONDESED INCOME STATEMENT
VERTICAL ANALYSIS
Dec-31
(IN MILLIONS) 2001 2000
AMOUNT PERCENT AMOUNT PERCENT
net sales 7,548.4 100.0 6,086.7 100.0
cogs 4,211.4 55.8 3,401.7 55.9
gross profit 3,337.0 44.2 2,685.0 44.1
selling and administrative expens 2,135.8 28.3 1,608.7 26.4
nonrecurring charges 33.3 0.4 86.5 1.4
income from operations 1,167.9 15.5 989.8 16.3
interest expense 351.5 4.7 137.5 2.3
other income (expense (net) - 23.9 -0.3 15.4 0.3
income before taxes 792.5 10.5 867.7 14.3
income tax expense 317.9 4.2 280.0 4.6
net income 474.6 6.3 587.7 9.7
a. current ratio 2014 2013
2302.6/1,497.7 1.5:1 1.537424
2,199.2/1,322.0 1.7:1 1.66354

b. inventory turnover
1,617.4/{(768.3+653.5) / 2 } 2.3 times 2.304317
1,476.3/{(653.5+599.0)/2] 2.4 times 2.351732

c. profit margin
406.1/6,336.3 6.4% 0.064091
375.4/5,790.4 6.5% 0.064831

d. return on assets
406.1/[3,885.8+3,708.1)/2] 10.7% 0.106954
375.4/[(3,708.1+3,349.9)/2] 10.6% 0.106376

e. return on ordnary shareholders's equity

406.1-0/[(1,708.6+1,749.0)/2] 23.5% 0.234903
375.4-0/[(1,749.0+1,795.9)/2] 21.2% 0.211797

f. debt to total assets

(1,497.7+679.5)/3,885.8 56.0% 0.560296
(1,322.0+637.1)/3,708.1 52.8% 0.52833

g. time interest earned

(406.1+291.3+13.9)/13.9 51.2 times 51.17266
(375.4+232.6+27.1)/27.1 23.4 times 23.43542
 Denver Corporation
Income Statement
For the Year Ended December 31, 2014
Net sales 4,400,000
Cost of goods sold 2,600,000
Gross profit 1,800,000
Selling and administrative expenses 1,100,000
Income from operations 700,000
Other income and expenses 4,000
Income before income taxes 696,000
Income tax expense (696,000 x 30%) 208,800
Income from continuing operations 487,200
Discounted operations
Income from operations of plastics, divison of net of
21,000 income taxes (70,000 x 30%) 49,000
Gain from disposal of plastic, division, net of 150,000
income taxes (50,000 x 30%) 350,000 399,000
Net Income 88,200