3. Compute the following ratios for 2016 and 2015. Please indicate both the amounts that you used to compute the ratio and the final ratio.

4. Based on your analysis of these four ratios, did Pepsis debt coverage improve in the current year? Please do not indicate whether the number computed increased or decreased but interpret what change in the ratios indicates about Pepsis debt.

These questions are based on the 10-K for the year ended December 31, 2016 for PepsiCo, Inc. You can obtain Pepsi's financial statements from the firm's corporate web site at http://www.pepsico.com/Investors.html or from the SEC's Edgar company filings site at https://www.sec.gov/edgar/searchedgar/companysearch.html. Unless otherwise indicated, all questions relate to the annual financial results. 3 Compute the following ratios for 2016 and 2015. Please indicate both the amounts that you used to compute the ratio and the final ratio. Ratio 2016 2015 Debt to Equity Return on Assets Return on Equity Times Interest Earned 4. Based on your analysis of these four ratios, did Pepsi's debt coverage improve in the current year? Please do not indicate whether the number computed increased or decreased but interpret what change in the ratios indicates about Pepsi's debt