The financial statements of PepsiCo, Inc. and the notes to consolidated financial statements appear in Appendix A.

Instructions
Refer to PepsiCo’s financial statements and answer the following questions about current and contingent liabilities and payroll costs.
  (a) What were PepsiCo’s total current liabilities at December 25, 2010? What was the increase/ decrease in PepsiCo’s total current liabilities from the prior year?
  (b) In PepsiCo’s Note 2 (“Our Significant Accounting Policies”), the company explains the nature of its contingencies. Under what conditions does PepsiCo recognize (record and report) liabilities for contingencies?
  (c) What were the components of total current liabilities on December 25, 2010?
  (d) What was PepsiCo’s total long-term debt at December 25, 2010? What was the increase/ decrease in total long-term debt from the prior year? What does Note 9 to the financial statements indicate about the composition of PepsiCo’s long-term debt obligation?
  (e) What are the total long-term contractual commitments that PepsiCo reports as of December 25, 2010? (See Note 9.)