Question
(a) What amount is reported in the balance sheets as property, plant, and equipment (net) of Coca-Cola at December 31, 2011, and of PepsiCo at
(a) What amount is reported in the balance sheets as property, plant, and equipment (net) of Coca-Cola at December 31, 2011, and of PepsiCo at December 31, 2011? What percentage of total assets is invested in property, plant, and equipment by each company?
(b) What depreciation methods are used by Coca-Cola and PepsiCo for property, plant, and equipment? How much depreciation was reported by Coca-Cola and PepsiCo in 2011 & 2010?
(c) Compute and compare the following ratios for Coca-Cola and PepsiCo for 2011?
(1) Asset turnover.
(2) Profit margin on sales.
(3) Rate of return on assets.
(d) What amount was spent in 2011 for capital expenditures by Coca-Cola and PepsiCo? What amount of interest was capitalized in 2011?
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