Kellogg Corp. Financial Analysis

A trend analysis based on financial data for the 1992-1996 period indicates that sales of the Kellwood Company are growing at the rate of 12.5 percent per year. Trend analysis indicates that the company's net income is growing at the rate of 5.2 percent per year.

With population growth slowing to a one-percent annual rate for the 1997-2006 decade, the apparel industry must carefully monitor potential sources of growth. Individual apparel manufacturers such as Kellwood must be especially diligent in this effort if they are to maintain growth trends.

Births peaked in the United States in 1990 ("Age Waves" S14). Thus, the teenage market for apparel, the most lucrative, may be expected to trend downward beginning in 2000. Business and casual apparel sales to persons in the 30-to-40 year old age group, however, may be expected to continue to grow through 2015.

Kellwood Company, as a manufacturer clothing for women, juniors, mens, and boys clothing, and as a manufacturer of underwear for women and children is in a position to take advantage of the age demographics confronting the industry. Kellwood should attain a sales level of $2.6 billion by 2001.

The company's before-tax cost of capital in 1995 was 7.2 percent. The tax-adjusted overall cost of capital was 7.2 percent (1 - .385) = 4.4 percent.

The market prices for the company's common stock for the period 24 February 1997 through 4 April 1997 are presen

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__________ Item ___Third __Fourth__ __Fifth __ Assets: Cash 1,100,000 1,100,000 1,100,000 Marketable Securities 10,255,662 13,878,710 17,568,972 Accounts Receivable 1,900,000 1,900,000 1,900,000 Inventories 2,200,000 2,200,000 2,200,000 Land 3,000,000 3,000,000 3,000,000 Building 17,000,000 17,000,000 17,000,000 (Res. Depr. - 1,020,000 - 1,360,000 - 1,700,000 Equipment 12,000,000 12,000,000 12,000,000 (Res. Depr.) -_3,600,000 - 4,800,000 - 6,000,000 Total 42,835,662 44,918,710 47,068,972 Liabilities: Capital Leases Long-Term Debt Equity: Retained Earn. 4,835,662 6,918,710 9,068,972 Common Stock 38,000,000 38,000,000 38,000,000 Total Equity 42,835,662 44,918,710 47,068,972 Total Lia. & Eq. 42,835,662 44,918,710 47,068,972 Pro-Forma Income Stamt's _______________Year_________________ Item _ First __Second__ __Third __ Sales 14,000,000 20,000,000 22,000,000 Material
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Some common words found in the essay are:
Kellwood Company, Net Inc, Date Price, Lease Revising, Bonds Revising, Income Stamt's, Res Depr, Question Based, Straight Bonds, Accounts Receivable, net inc, net income, 1540000 1540000, _______________year_________________ item, common stock, kellwood company, value analysis, depreciation 1540000 1540000, res depr, 17000000 17000000, 3000000 3000000, net inc 5, _______________year_________________ item _, net inc 4, net inc 3,
Approximate Word count = 1322
Approximate Pages = 5 (250 words per page)

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