1. Go to the EDGAR page
2. Enter "K" in the box Fast Search and click "Search" ("K" is Kellogg's stock symbol).
3. You should see results for KELLOGG CO CIK#: 0000055067
4. Enter "10-K" in the "Filing Type" box and click on "Search" on the right side of the page.
5. Click on the "Documents" box for the 10-K with the filing date of 2016-02-24. You may also need 2014 balance sheet information from the 10-K dated 2015-02-25. Then click on the link under "Document" to the 10-K to access the financial statements.
6. Scroll through the 10-K to get the required information. You may need information from the:
a. Management Discussion and Analysis
b. Consolidated Statements of Earnings, Balance Sheets, Cash Flow
Statements, Equity, and Statements of Comprehensive Income
c. Footnotes
d. Section 302 Certifications - In Exhibits
Questions on the next page indicate the required information.
Research Requirements
Answer the questions on the next two pages. Questions 1 through 8 and questions 10 and 11 are worth one point each. Question 9 is worth three points. Question 12 is worth two points.
1. What accounting firm audited Kellogg's financial statements?
2. Find the Rule 13a-14(a)/15d-14(a) section of the financial statements and identify the names of the CEO and CFO:
3. Find the section titled "Critical Accounting Estimates". Name two of five areas subject to critical accounting estimates.
4. What dollar of equity amounts did Kellogg report for "Noncontrolling Interests" for the following years?
5. How does Kellogg define "Cash Equivalents"?
6. What are the three main items Kellogg's marks-to-market?
7. What was Kellogg's after-tax other comprehensive income (OCI) and comprehensive income (CI) for 2015?
8. What was the after tax effect on Kellogg's comprehensive income (loss) from
"Unrealized gain (loss) on cash flow hedges"?
9. What amounts did Kellogg report for the following?
a. Total Net Sales 2015________ 2014__________
b. Net Accounts Receivable 2015_________ 2014__________ 2013___________
c. Allowance for Doubtful Accounts 2015__________ 2014___________
10. Using the above amounts and showing all components of the ratios, compute Kellogg's
Accounts Receivable Turnover ratio for the following years. Please use the average of ending Accounting Receivables for the denominator:
2015___________ 2014____________
11. Using the above amounts and showing all components of the ratios, compute the ratio of
Allowance for Doubtful Accounts to Ending Total Accounts Receivable for the following
years.
2015____________ 2014_____________
12. Evaluate the ratios from 10 and 11 above and underline the response that best reflects how adequately Kellogg has provided for the allowance for bad debts in 2015. Briefly explain your answer.
Conservative Expected Aggressive