Comparing Coca-Cola and PepsiCo The current items, listed in alphabetical order, are taken from the consolidated balance
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Comparing Coca-Cola and PepsiCo The current items, listed in alphabetical order, are taken from the consolidated balance sheets of Coca-Cola and PepsiCo as of December 31, 2006. (All amounts are in millions of dollars.)
Required 1. Compute working capital and the current ratio for both companies.
2. On the basis of your answers to (1), which company appears to be more liquid?
3. As you know, other factors affect a company’s liquidity in addition to its working capital and current ratio. Comment on the composition of each company’s current assets and ways this composition affects the company’s liquidity.
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Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton
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