Appendix A at the end of this textbook presents the financial statements of PepsiCo, 

Instructions 

Answer the following questions using the Consolidated Balance Sheet and the Notes to Consolidated Financial Statements section.

(a) What were PepsiCo’s total current assets at December 31, 2005 and December 25, 2004?

(b) Are assets that PepsiCo included under current assets listed in proper order? Explain.

(c) How are PepsiCo’s assets classified?

(d) What are “cash equivalents”?

(e) What were PepsiCo ’s total current liabilities at December 31,2005 and December 25, 2004?

Data from Appendix A

Transcribed Image Text:

Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 31, 2005, December 25, 2004 and December 27, 2003 PEPSICO 2003 Het Revenue......... Cost of sales. Selling, general and administrative expenses. $32,562 $29,261 $26,971 14,176 12,674 11,691 12.314 11,031 10,148 Amortization of intangible assets. 150 147 145 Restructuring and impairment charges.. 150 147 Merger-related costs... 59 Operating Profit. 5.922 5,259 4,781 Bottling equity income.. 557 380 323 Interest expense... (256) (167) (163) Interest income... 159 74 51 Income from Continuing Operations before Income Taxes. 6.382 5,546 4,992 Provision for Income Taxes......... 2,304 1,372 1,424 Income from Continuing Operations... 4,078 4,174 3,568 Tax Benefit from Discontinued Operations. 38 Net Income Net Income per Common Share Continuing operations.. Discontinued operations.. Total $4,078 $ 4,212 $ 3,568 Basic $2.43 $2.45 $2.07 0.02 $2.43 $2.47 $2.07