The following information based on the 123118 Annual Report

The following information, based on the 12/31/18 Annual Report to Shareholders of Krafty Foods (S in millions): Accounts payable Accounts receivable (net) Accrued liabilities and taxes Cash and cash equivalents Cost of sales Current payables to parent and affiliates Current portion of long-term debt Deferred income taxes and other liabilities Retained earnings as of 12/31/18 Goodwill and other intangible assets (net) Income tax expense Interest and other debt expense, net Inventories Long-term debt Long-term notes payable to parent and affiliates Marketing, general and administration expenses Operating revenues Other eurrent assets Other noncurrent assets Other stockholders\' equity Paid-in capital for common and preferred stock Property, plant and equipment (net) Short-term borrowings 1,897 3,131 4,105 162 17,531 1,652 540 10,311 2,391 5,957 1,565 1,437 3,026 8,134 5,000 1,460 3,875 687 3,726 (2,568) 23,655 9,109 681 Required: Ented vn ur e nvoemation presented bovo bropore the lhcome Statement fo the year ended December 3t, 2018. your answers in millions (i.e., 10,000,000 should be entered as 10).) KRAFTY FOODS Income Statement For the Year Ended December 31, 2018

Solution

Krafty Foods Income Statement For the Year Ended December 31, 2018 Operating revenues 33875 Cost of sales 17531 Gross profit 16344 Marketing, general and administration Expenses 11460 Operating income 4884 Interest and other debt expense, net 1437 Income before taxes 3447 Income tax expense 1565 Net income 1882