PepsiCo’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.

Instructions (b) What conclusions concerning the two companies can be drawn from these data?

The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.

Instructions Use the companies’ financial information to answer the following questions.

• a. How much working capital do each of these companies have at the end of 2014?
• b. Compute each company’s (a) current cash debt coverage, (b) cash debt coverage, (c) current ratio, (d) acid-test ratio, (e) accounts receivable turnover, and (f) inventory turnover for 2014. Comment on each company’s overall liquidity.
• c. What types of loss or gain contingencies do these two companies have at the end of 2014?

PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also given in Appendices B and C, respectively.

Instructions
What conclusions about managing accounts receivable can you draw from these data?

PepsiCo’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.

Instructions (a) Based on the information contained in these fi nancial statements, determine each of the following for each company.

$~~$(1) The percentage increase (decrease) in (i) net sales and (ii) net income from 2012 to 2013. $~~$(2) The percentage increase in (i) total assets and (ii) total common stockholders’ (shareholders’) equity from 2012 to 2013. $~~$(3) The basic earnings per share and price-earnings ratio for 2013. (For both PepsiCo and Coca-Cola, use the basic earnings per share.) Coca-Cola’s common stock had a market price of $41.31 at the end of fiscal-year 2013, and PepsiCo’s common stock had a market price of$82.71.

Amazon.com Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the fi nancial statements, are also provided in Appendices D and E, respectively.

Instructions (b) Based on information in these financial statements, compute the following 2013 values for Amazon and 2014 values for Wal-Mart: (1) Working capital. (2) Current ratio.

Eckholm Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,800, Service Revenue$9,200, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assuming (a) $400 of supplies on hand and (b)$3,000 of service revenue should be reported as unearned.

Schramel Advertising Company’s trial balance at December 31 shows Supplies $6,700 and Supplies Expense$0. On December 31, there are $2,100 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

The condensed financial statements of Murawski Company for the years 2016 and 2017 are presented below. (Amounts in thousands.)

$$\begin{array}{c} \textbf{MURAWSKI COMPANY}\\ \textbf{Balance Sheets}\\ \textbf{December 31}\\ \end{array}$$

$$\begin{array}{c} \textbf{MURAWSKI COMPANY}\\ \textbf{Income Statements}\\ \textbf{For the Years Ended December 31}\\ \end{array}$$

Compute the following ratios for 2017 and 2016. (b) Inventory turnover. (Inventory on 12/31/15 was $340.)

The notes that accompany a company’s financial statements give informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A as well as its annual report. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also given in Appendix A.

Instructions
Compute the dollar amount of change and the percentage change in inventories between 2012 and 2013. Compute inventory as a percentage of current assets at September 28, 2013.

Complete the requirements in millions of dollars, as shown in Apple’s annual report.

Refer to Apple's financial statements in Appendix A for the following questions..

Required

1. What amount of total liabilities does Apple report for each of the fiscal years ended (a) September 30, 2017, and (b) September 24, 2016?

2. What amount of total assets does it report for each of the fiscal years ended (a) September 30, 2017, and (b) September 24, 2016?

3. Compute its debt ratio for each of the fiscal years ended (a) September 30, 2017, and (**b) September 24, 2016. (Report ratio in percent and round it to one decimal.)

4. In which fiscal year did it employ more financial leverage: September 30, 2017, or September 24, 2016? Explain.

The notes that accompany a company’s financial statements give informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A as well as its annual report. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also given in Appendix A.

Instructions
What is the cost of sales (cost of goods sold) reported by Apple for 2013, 2012, and 2011? Compute the percentage of cost of sales to net sales in 2013.

Complete the requirements in millions of dollars, as shown in Apple’s annual report.

Are short-term creditors, long-term creditors, and stockholders interested primarily in the same characteristics of a company? Discuss.

Schellhammer Corporation reported the following amounts in 2016, 2017, and 2018.

Instructions (a) Identify and describe the three tools of financial statement analysis.

The comparative statements of Painter Tool Company are presented below.

$$\begin{array}{c} \textbf{PARTNER TOOL COMPANY}\\ \textbf{Income Statement}\\ \textbf{For the Years Ended December 31}\\ \end{array}$$

$$\begin{array}{lcc} &\underline{2017}&\underline{2016}\\ \text{Net sales}&\$1,818,500&\$1,750,500\\ \text{Cost of goods sold}&\underline{1,011,500}&\underline{996,000}\\ \text{Gross profit}&807,000&754,500\\ \text{Selling and administrative expenses}&\underline{499,000}&\underline{479,000}\\ \text{Income from operations}&308,000&275,500\\ \text{Other expenses and lossess}\\ ~~~~\text{Interest expense}&\underline{18,000}&\underline{14,000}\\ \text{Income before income taxes}&290,000&261,500\\ \text{Income tax expense}&\underline{87,000}&\underline{77,000}\\ \text{Net Income}&\underline{\underline{\$203,000}}&\underline{\underline{\$184,500}}\\ \end{array}$$

$$\begin{array}{c} \textbf{PARTNER TOOL COMPANY}\\ \textbf{Balance Sheets}\\ \textbf{December 31}\\ \end{array}$$

$$\begin{array}{lcc} \text{\underline{Assets}}&\underline{2017}&\underline{2016}\\ \text{Current assets}\\ ~~~\text{Cash}&\$60,100&\$64,200\\ ~~~\text{Short-term investments}&69,000&50,000\\ ~~~\text{Accounts receivable (net)}&107,800&102,800\\ ~~~\text{Inventory}&\underline{133,000}&\underline{115,500}\\ ~~~~~~\text{Total current assets}&\underline{369,900}&\underline{332,500}\\ \text{Plant assets (net)}&\underline{600,300}&\underline{520,300}\\ \text{Total assets }&\underline{\underline{\$970,200}}&\underline{\underline{\$852,800}}\\ \\ \text{\underline{Liabilities and Stockholders' Equity}}\\ \text{Current liabilities}\\ ~~~\text{Accounts payable}&\$160,000&\$145,400\\ ~~~\text{Income taxes payable}&\underline{43,500}&\underline{42,000}\\ ~~~~~~\text{Total current liabilities}&\underline{203,500}&\underline{187,400}\\ \text{Bonds payable}&\underline{200,000}&\underline{200,000}\\ \text{Total liabilities}&\underline{403,500}&\underline{387,400}\\ \text{Stockholders' equity}\\ ~~~\text{Common stock (\$5 par)}&280,000&300,000\\ ~~~\text{Retained earnings}&\underline{286,700}&\underline{165,400}\\ ~~~~~~\text{Total stockholders' equity}&\underline{566,700}&\underline{465,400}\\ \text{Total liabilities and stockholders’ equity}&\underline{\underline{\$970,200}}&\underline{\underline{\$852,800}}\\ \end{array}$$

All sales were on account.

Instructions Compute the following ratios for 2017. (Weighted-average common shares in 2017 were 57,000.) (a) Earnings per share