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?

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. What format(s) did these companies use to present their balance sheets?

b. How much working capital did each of these companies have at the end of 2017? Speculate as to their rationale for the amount of working capital they maintain.

c. What are the companies' annual and 3-year (2015-2017) growth rates in total assets and long-term debt?

d. What were these two companies' trends in net cash provided by operating activities over the period 2015-2017?

e. Compute both companies' (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?

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. What were Coca-Cola's and PepsiCo's net revenues (sales) for the year 2017? Which company increased its revenue more (dollars and percentage) from 2016 to 2017?

b. Are the revenue recognition policies of Coca-Cola and PepsiCo similar? Explain.

c. In which foreign countries (geographic areas) did Coca-Cola and PepsiCo experience significant revenues in 2017? Compare the amounts of foreign revenues to U.S. revenues for both Coca-Cola and PepsiCo.

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. What are the primary lines of business of these two companies as shown in their notes to the financial statements?

b. Which company has the dominant position in beverage sales?

c. How are inventories for these two companies valued? What cost allocation method is used to report inventory? How does their accounting for inventories affect comparability between the two companies?

d. What future accounting policy changes do the companies discuss related to revenue recognition?

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 2017?

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 2017. Comment on each company's overall liquidity.

c. What types of loss or gain contingencies do these two companies have at the end of 2017?

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. What method of computing net cash provided by operating activities does Coca-Cola use? What method does PepsiCo use? What were the amounts of cash provided by operating activities reported by Coca-Cola and PepsiCo in 2014?
• b. What was the most significant item reported by Coca-Cola and PepsiCo in 2014 in their investing activities sections? What is the most significant item reported by Coca-Cola and PepsiCo in 2014 in their financing activities sections?
• c. What were these two companies’ trends in net cash provided by operating activities over the period 2012 to 2014?
• d. Where is “depreciation and amortization” reported by Coca-Cola and PepsiCo in their statements of cash flows? What is the amount and why does it appear in that section of the statement of cash flows?
• e. Based on the information contained in Coca-Cola’s and PepsiCo’s financial statements, compute the following 2014 ratios for each company. These ratios require the use of statement of cash flows data. (These ratios were covered in Chapter 5.) (1) Current cash debt coverage. (2) Cash debt coverage.
• f. What conclusions concerning the management of cash can be drawn from the ratios computed in (e)?

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. What format(s) did these companies use to present their balance sheets?
• b. How much working capital did each of these companies have at the end of 2014? Speculate as to their rationale for the amount of working capital they maintain.
• c. What are the companies’ annual and 5-year (2010–2014) growth rates in total assets and long-term debt 2012?
• d. What were these two companies’ trends in net cash provided by operating activities over the period 2012–2014?
• e. Compute both companies’ (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?

PepsiCo, Inc.’s financial statements are shown 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 fi nancial statements, are also provided in Appendices B and C, respectively.

Instructions
Based on the information contained in these financial statements, determine the following for each company.

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. Which company had the greater percentage increase in total assets from 2016 to 20177?

b. Using the Selected Financial Data section of these two companies, determine their 5-year average growth rates related to net sales and income from continuing operations.

c. Which company had more depreciation and amortization expense for 2017? Provide a rationale as to why there is a difference in these amounts between the two companies.

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 companies’ long-run solvency can be drawn from these ratios?

Daniel Perkins is the sole shareholder of Perkins Inc., which is currently under protection of the U.S. bankruptcy court. As a "debtor in possession," he has negotiated the following revised loan agreement with United Bank. Perkins Inc.'s $600,000, 12%, 10-year note was refinanced with a$600,000, 5%, 10-year note.

Instructions

a. What is the accounting nature of this transaction?

b. Prepare the journal entry to record this refinancing.

1. On the books of Perkins Inc.
2. On the books of United Bank.

c. Discuss whether generally accepted accounting principles provide the proper information useful to managers and investors in this situation.

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 financial statements, compute free cash flow for each company.

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. What employee stock-option compensation plans are offered by Coca-Cola and PepsiCo?

b. How many options are outstanding at year-end 2017 for both Coca-Cola and PepsiCo?

c. How many options were granted by Coca-Cola and PepsiCo to officers and employees during 2017?

d. How many options were exercised during 2017?

e. What was the average exercise price for Coca-Cola and PepsiCo employees at December 31, 2017?

f. What was the diluted net income per share for Coca-Cola and PepsiCo for 2017, 2016, and 2015?

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?