(Solution) - The following information was obtained from the fiscal year 2014 -(2025 Original AI-Free Solution)

Paper Details

The following information was obtained from the fiscal year 2014 and 2013 financial statements included in Form 10 K of Kellogg Company and Subsidiaries and General Mills, Inc. and Subsidiaries. (Year-ends for Kellogg's arc January 3, 2015, and December 28, 2013 and for General Mills are May 25, 2014, and May 26, 2013.) Assume all sales are on credit for both companies.

Required
1. Using the information provided, compute the following for each company for 2014:
a. Accounts receivable turnover ratio
b. Number of days' sales in receivables
c. Inventory turnover ratio
d. Number of days' sales in inventory
e. Cash-to-cash operating cycle
2. Comment briefly on the liquidity of each of these two companies.