PepsiCo, Inc.s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented
Question:
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are available at each company’s respective website.
Instructions
a. At December 26, 2015, what was PepsiCo’s largest current liability account? What were its total current liabilities? At December 31, 2015, what was Coca-Cola’s largest current liability account? What were its total current liabilities?
b. Based on information contained in those financial statements, compute the following 2015 values for each company:
1. Working capital.
2. Current ratio.
c. What conclusions concerning the relative liquidity of these companies can be drawn from these data?
Step by Step Answer:
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso