3 Comparing Two Companies in the Same Industry: Kellogg’s and General Mills
Refer to the financial statement information of Kellogg’s and General Mills reproduced at the
end of this book.
1. Calculate the account receivables turnover ratios for both companies for the most recent year.
2. Calculate the average length of time it takes each company to collect its accounts receivable.
3. Compare the two companies on the basis of your calculations in (1) and (2).