Week 3 Team Assignment
Interpreting Financial Statements BYP13-4 The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from the 2004 consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc., are presented here (in millions).
Coca-Cola PepsiCo Total current assets $ 12,094 $ 8,639 Total current liabilities 10,971 6,752 Net sales 21,962 29,261 Cost of goods sold 7,638 13,406 Net income 4,847 4,212 Average (net) receivables for the year 2,131 2,915 Average inventories for the year 1,336 1,477 Average total assets 29,335 26,657 Average common stockholders’ equity 15,013 12,734 Average current liabilities 9,429 6,584 Average total liabilities 14,322 27,917 Total assets 31,327 27,987 Total liabilities 15,392 14,464 Income taxes 1,375 1,372 Interest expense 196 167 Cash provided by operating activities 5,968 5,054 Capital expenditures 755 1,387 Cash dividends 2,429 1,329
Instructions Compute the following liquidity ratios for 2004 for Coca-Cola and for PepsiCo and comment on the relative liquidity of the two competitors: Current ratio. Receivables turnover. Average collection period. Inventory turnover. Days in inventory. Current cash debt coverage.
Attachments
Chapter 13 Financial Accounting_ Tools for Business Decision Making.pdf
