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Investors can find information such as company sales

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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.
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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
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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.
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