Investors can find information such as company sales

Info icon This preview shows pages 5–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Investors can find information such as company sales, retained earnings, operating income, profit, and retained earnings all on the income statement. From these numbers investors can discern crucial information about the company and calculate with relative certainty the success or failure they will face when investing with the company. Often income statements will report for more than one period, so a comparison of multiple periods of the company can be made and will only help a potential investor see trends in sales and growth.
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Financial Reporting Problem: Part Two 6 NOTE 6 DEBT The following table presents the components of notes payable at year end December 31, 2011 and January 1, 2011: (millions) 2011 2010 Principal amountEffective interest ratePrincipal amountEffective interest rate U.S. commerical paper $216 0.24% $— —% Bank borrowings $18 $44 Total $234 $44 Long-term debt at year end consisted primarily of issuances of U.S. Dollar Notes, as follows: (millions) 2011 2010 (a) 7.45% U.S. Dollar Debentures due 2031 $1,09 0 $1,090 (b) 4.0% U.S. Dollar Notes due 2020 992 991 (c) 4.25% U.S. Dollar Notes due 2013 772 800 (d) 4.45% U.S. Dollar Notes due 2016 763 748 (e) 5.125% U.S. Dollar Notes due 2012 760 768 (f) 1.875% U.S. Dollar Notes due 2016 499 (g) 4.15% U.S. Dollar Notes due 2019 499 498 (h) 3.25% U.S. Dollar Notes due 2018 409 (a) 6.6% U.S. Dollar Notes due 2011 951 Other 14 14 5,798 5,860 Less current maturities (761) (952) Balance at year end $5,03 7 $4,908
Image of page 6
Financial Reporting Problem: Part Two 7 References www.accoutingbase.com. (2009). Retrieved from http://www.accountingbase.com/IntroALE1.html Investopedia. (2012). Definition “cash equivalents.” Retrieved from http://www.investopedia.com/terms/c/cashequivalents.asp#axzz23lLi2BbJ Kellogg’s. (2012). Notes to consolidated financial statements. Retrieved from http://www.annualreport2011.kelloggcompany.com/10k_notes_6.htm Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2009). Financial accounting: Tools for business decision making (5th ed.). Hoboken, NJ: John Wiley & Sons.
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern