Go to the books companion website and use information found there to answer the following questions related
Question:
Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc.
(a) What format(s) did these companies use to present their balance sheets?
(b) How much working capital did each of these companies have at the end of 2011? Speculate as to their rationale for the amount of working capital they maintain.
(c) What is the most significant difference in the asset structure of the two companies? What causes this difference?
(d) What are the companies’ annual and 5-year (2007–2011) growth rates in total assets and long term debt?
(e) What were these two companies’ trends in net cash provided by operating activities over the period 2007–2011?
(f) Compute both companies’ (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield