Appendix B & C for this question are below!!!
Appendix B
Appendix C
Current Attempt in Progress PepsiCo, Inc.'s financial statements are presented in Appendix B. Click here to view Appendix B. Financial statements of The Coca-Cola Company are presented in Appendixc. Click here to view Appendix The complete annual report of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively. Based on information contained in these financial statements, determine the following for each company. (Enter decrease in account balance with a negative sign preceding the number, 2.8. -45,000,000 or parentheses, e. 3. (45,000,000). Enter amounts in millions.) PepsiCo (a) Net increase (decrease) in property, plant, and equipment (net) from 2018 to 2019. $ (b) Increase (decrease) in selling general, and administrative expenses from 2018 to 2019, $ (c) Increase (decrease) in long-term debt (obligations) from 2018 to 2019. $ (d) Increase (decrease) in net income from 2018 to 2019. $ le) Increase (decrease) in cash and cash equivalents from 2018 to 2019. 2017 $ 63,525 28,796 34,729 24453 10,276 233 Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions except per share amounts) 2019 2018 Net Revenue $ 67,161 $ 64,661 Cost of sales 30,132 29,381 Gross profit 37,029 35,280 Selling, general and administrative expenses 26,738 25,170 Operating Profit 10,291 10.110 Other pension and retiree medical benefits (expense)/income (44) 298 Interest expense (1,135) (1,525) Interest income and other 200 306 Income before income taxes 9,312 9,189 Provision for/(benefit from) income taxes (See Note 5) 1,959 (3,370) Net income 7,353 12 559 Less: Net income attributable to non controlling interests 39 Net Income Attributable to PepsiCo $ 7,314 $ 12,515 Net Income Attributable to PepsiCo per Common Share Basic $ 5.23 Diluted $ 5.20 Weighted average common shares outstanding Basic 1.399 1.415 Diluted 1,407 1.425 (1.151) 244 9,602 4,694 4,908 51 $ 4,857 44 $ 8.84 s 3.40 $ 8.78 $ 3.38 1,425 1.438 Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2017 2019 $ 7,353 2018 $ 12,559 $ 4,908 628 1,109 Net income Other comprehensive income/(loss), net of taxes: Net currency translation adjustment Net change on cash flow hedges Net pension and retiree medical adjustments Net change on available-for-sale securities Other (1,641) 40 (90) 283 (2) (467 6 (36) (159) (68) 16 862 5,770 (51) $ 5,719 819 Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive Income Attributable to PepsiCo 8,172 (39) $8,133 (2,062) 10.497 (44) $10.453 See accompanying notes to the consolidated financial statements. 2018 2017 $ 12,559 $ 4.908 2,399 256 2,369 292 308 Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2019 Operating Activities Net income $ 7.353 Depreciation and amortization 2.432 Share-based compensation expense 237 Restructuring and impairment charges 370 Cash payments for restructuring charges (350) Pension and retiree medical plan expenses 519 Pension and retiree medical plan contributions (716) Deferred income taxes and other tax charges and credits 453 Net tax related to the TCI Act (8) Tax payments related to the TC Act (423) Other net tax benefits related to international reorganizations (2) Change in assets and liabilities: Accounts and notes receivable (650) Inventories (190) Prepaid expenses and other current assets (87) Accounts payable and other current liabilities 735 Income taxes payable (287) Other, net 263 Net Cash Provided by Operating Activities 9.649 (255) 221 (1.708) (531) (28) (115) (4,347) 295 (113) 221 (220) 619 2,451 (253) (174) 9 882 (202) (168) 20 201 (338) (305) 10.030 448 (256) 9.415 (continues 2019 2019 2018 2017 (2,969) 180 (4,232) 170 (1.939) (778) 253 Investing Activities Capital spending Sales of property, plant and equipment Acquisition of SodaStream, net of cash and cash equivalents acquired Other acquisitions and investments in noncontrolled affiliates Divestitures Short-term investments, by original maturity: More than three months --- purchases More than three months-maturities More than three months-sales Three months or less, net Other investing.net Net Cash (Used for)/Provided by Investing Activities (3,282) 134 (1.197) (299) 505 (61) 267 (5,637) 12,824 16 (18,385) 15,744 790 62 1.498 19 16 2 (8) (6,437) 2 4,564 29 (4,403) 4,621 (3,970) (1,007) 7.509 (4,406) (4,007) (1,589) Financing Activities Proceeds from issuances of long-term debt Payments of long-term debt Debt redemption/cash tender and exchange offers Short-term borrowings, by original maturity: More than three months--proceeds More than three months-payments Three months or less.net Cash dividends pald Share repurchases---common Share repurchases--preferred Proceeds from exercises of stock options 6 91 (3) (5,304) (3,000) 3 (17) (1.352) 4.930) (2.000) (2) 281 (128) (1,016) (4.472) (2.000) (5) 462 329 (4,930) (2,000) (2) (4,472) (2,000) (5) 329 281 462 Cash dividends paid (5,304) Share repurchases-common (3,000) Share repurchases--preferred Proceeds from exercises of stock options Withholding tax payments on restricted stock units (RSUS), performance stock units (PSU) and PepsiCo equity performance units (PEPunits) converted (114) Other financing (45) Net Cash Used for Financing Activities (8,489) Effect of exchange rate changes on cash and cash equivalents and restricted cash Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash (5.199) Cash and Cash Equivalents and Restricted Cash, Beginning of Year 10,769 Cash and Cash Equivalents and Restricted Cash, End of Year See accompanying notes to the consolidated financial statements, (103) (53) (13,769) (98) 112 10,657 S 10.769 (145) (76) (4,186) 47 78 1.488 9.169 $ 10,657 $ 5,570 Consolidated Balance PepsiCo, Inc. and Subsidiaries December 28, 2019 and December 29, 2018 (in millions except per share amounts) 2019 2018 $ 5,509 $ 8,721 272 229 1.997 7,142 3,128 633 ASSETS Current Assets Cash and cash equivalents Short-term investments Restricted cash Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other indefinite-lived intangible assets Indefinite-Lived Intangible Assets Investments in Noncontrolled Affiliates Deferred Income Taxes Other Assets Total Assets 7,822 3,338 747 17,645 19,305 1,433 15,501 14,610 30,111 2,683 4,359 3,011 $78,547 21,893 17,589 1.644 14,808 14,181 28,989 2.409 4,364 760 $77,648 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations $ 2,920 $ 4,026 Total Assets $78,547 $ 77,648 $ 2,920 17,541 20,461 29,148 4,091 9,979 63.679 $ 4,026 18,112 22,138 28,295 3,499 9,114 63,046 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Deferred Income Taxes Other Liabilities Total Liabilities Commitments and contingencies PepsiCo Common Shareholders' Equity Common stock, par value 1% per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,391 and 1,409 shares, respectively) Capital in excess of par value Retained earings Accumulated other comprehensive loss Repurchased common stock, in excess of par value (476 and 458 shares, respectively) Total PepsiCo Common Shareholders' Equity No controlling interests Total Equity Total Liabilities and Equity 23 3.886 61,946 (14,300) (36,769) 14,786 82 23 3,953 59.947 (15,119) (34,286 14,518 84 14,868 $78,547 14,602 $77,648 2019 2018 2017 Amount Shares Amount Shares Amount Shares 0.8 $ 41 0.8 S 41 11 (0.1) (0.7) 6) (35) 11 0.8 41 (0.7) (0.7) (197) (2) 199 (192) (5) Els lleig lige: 0.7 (0.7) (197) 1,409 23 1.420 24 1.428 Preferred Stock Balance, beginning of year Conversion to common stock Retirement of preferred stock Balance, end of year Repurchased Preferred Stock Balance, beginning of year Redemptions Retirement of preferred stock Balance, end of year Common Stock Balance, beginning of year Share issued in connection with preferred stock conversion to common stock Change in repurchased common stock Balance, end of year Capital in Excess of Par Value Balance, beginning of year Share-based compensation expense Equity issued in connection with preferred stock conversion to common stock Stock option exercises. RSUS, PSUs and PEPunits converted Withholding taxon RSUS. PSUs and PEPunits converted Other 24 (18) 1,391 1 (12) 1,409 (1) 23 (8) 1,420 23 24 3,953 3.996 250 4,091 290 235 0 (188) (193) (236) (114) (103) (3) (0) 3,886 3,955 3.490 59,947 52,518 8 52,839 (145) 12,515 7,314 (5,323) 4,857 (4,536) Balance, chd ot year Retained Earnings Balance, beginning of year Cumulative effect of accounting changes Net income attributable to PepsiCo Cash dividends declared-common) Retirement of preferred stock Balance, end of year Accumulated Other Comprehensive Loss Balance, beginning of year Other comprehensive income/(los) attributable to PepsiCo Balance, end of year (5,098) (164) 59,947 61.946 52,839 (15,119) (13,057) (13,919) 819 (2,062) (15,119) 862 (13,057) (14.300) (continues 2017 Amount (31,468) (2.000) 469 708 1 3 (32,757) 11,045 2019 2018 Shares Amount Shares Amount Shares Repurchased Common Stock Balance, beginning of year (458) (34,286) (446) (32.757) (438) Share repurchases (24) (3.000) (18) (2.000) (18) Stock option exercises, RSUS, PSUs and PEPunits converted 6 516 10 Other 2 Balance, end of year (476) (36,769) (458) (34,286) 446 Total PepsiCo Common Shareholders' Equity 14,786 14.518 Noncontrolling Interests Balance, beginning of year 34 92 Net income attributable to noncontrolling 44 interests Distributions to noncontrolling interests (42) (49) Othernet 1 (3) Balance, end of year 84 Total Equity 514 68 $ 14,602 (a) Cash dividends declared per common share were $3.7925,53,5875 and $3.1675 for 2019, 2018 and 2017, respectively, See accompanying notes to the consolidated financial statements 104 51 (62) - 2 sle $ 10,981 2019 $ 37,266 14,619 22,647 12,103 2018 $ 34,300 13,067 21.233 11,002 1.079 9,152 689 458 10,086 563 946 950 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) Year Ended December 31, Net Operating Revenue Cost of goods sold Gross Profit Selling general and administrative expenses Other operating charges Operating Income Interest income Interest expense Equity income (loss)-net Other income (loss)--net Income Before Income Taxes Income taxes Consolidated Net Income Les: Net Income (los) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basie Net Income Per Share Diluted Net Income Per Share! Average Shares Outstanding--Basic Effect of dilutive securities Average Shares Outstanding-Diluted Calculated based on net income attributable to shareowners of The Coca-Cola Company Refer to Notes to Consolidated Financial Statements 2017 $ 36,212 13,721 22,491 12,834 1.902 7,755 679 853 1,072 (1.763) 6,890 5,607 1.283 35 $ 1.248 $0.29 $ 0.29 1,049 34 10,786 1,801 8.985 65 1,008 (1.674) 8.225 1.749 6.476 42 S 6,434 $ 1.51 $ 150 4.259 40 14,299 58.920 $2.09 $2.02 4.276 38 32 4,324 2018 2017 $ 1.283 $ 6,476 74 861 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2019 Consolidated Net Income $ 8,985 Other comprehensive income Net foreign currency translation adjustments Net gains (losses) on derivatives (54) Net change in unrealized gains (losses) on available for sale securities 18 Net change in pension and other benefit liabilities (159) Total Comprehensive Income 8,864 Less Comprehensive income attributable to noncontrolling interests 110 Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company 5 8.754 (433) 188 (2.035) (7) (34) 29 4,429 95 322 2.221 73 $ 4,334 $ 2,148 12,148 Refer to Notes to Consolidated Financial Statements 2019 2018 $ 9,077 2,025 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31, ASSETS Current Assets Cash and cash equivalents Short-term investments Total Cash, Cash Equivalents and Short Term Investments Marketable securities Trade accounts receivable, less allowances of $524 and $501, respectively Inventories Prepaid expenses and other assets Total Current Assets Equity method investments Other investments Other assets Deferred income tax assets Property, plant and equipment--net Trademarks with indefinite lives Bottlers franchise rights with indefinite lives Goodwill Other intangible assets Total Assets LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses $ 6,480 1,467 7,947 3,228 3,971 3,379 1,886 20,411 19,025 854 6,075 2,412 10,838 9,266 109 16,764 11,102 5,013 3,685 3,071 2,059 24,930 19,412 862 4.148 2,674 9,598 6,682 51 14,109 745 $83,216 627 $ 86,381 $11,312 $9.533 LU, 627 745 $83,216 $ 86,381 Other intangible assets Total Assets LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Total Current Liabilities Long-term debt Other liabilities Deferred income tax liabilities The Coca-Cola Company Shareowners' Equity Common stock, 30.25 par value: authorized - 11,200 shares; issued -7,040 shares Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost-2,760 and 2,772 shares, respectively Equity Attributable to Shareowners of The Coca-Cola Company Equity attributable to noncontrolling interests Total Equity Total Llabilities and Equity $ 11,312 10,994 4,253 414 26,973 27,516 8,510 2,284 $9,533 13,835 5,003 411 28,782 25,376 7.646 2,354 1,760 17,154 65,855 (13.544) (52,244) 18,981 2,117 21,098 $ 86,381 1.760 16.520 63,234 (12,814) (51,719) 16,981 2,077 19,058 $ 83,216 Refer to Notes to Consolidated Financial Statements 2019 2018 2017 $ 8,985 1,365 201 $ 6,476 1,086 225 $ 1,283 1,260 219 (1,252) (628) 292 (413) (457 (280) (421) 91 (467) 127 (50) THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Year Ended December 31, Operating Activities Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss-net of dividends Foreign currency adjustments Significant (gains) losses--net Other operating charges Other items Net change in operating assets and liabilities Net Cash Provided by Operating Activities Investing Activities Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and normarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net Cash Provided by (Used in) Investing Activities Financing Activities 743 558 504 1,459 1.218 (252) 3,442 7.041 366 699 (1.240) 7.627 10,471 (4.704) 6,973 (5,542) 429 (2,054) 978 (56) (3.976 (7.789 14,977 (1.263) 1.362 (1,548) 248 (60) 5,927 (17.296) 16,694 (3,809) 3,821 (1.750) 108 (80) 2.312 Issuances of debt 23.009 27,605 29.926 (2,054) 978 (56) (3.976 (1.548) 248 (60) 5,927 (1.750) 108 (80) 2.312 Proceeds from disposals of property, plant and equipment Other investing activities Net Cash Provided by (Used in) Investing Activities Financing Activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Year Less: Restricted cash and restricted cash equivalents at end of year Cash and Cash Equivalents at End of Year 23,009 (24,850) 1,012 (1,103) (6,845) (227) (0,004) 27,605 (30,600) 1.476 (1,912) (6,644) (272) (10,347 29,926 (28,871) 1.595 (3.682) (6,320) (95) (7,447) (72) (262) 241 2,945 (2,581) 9,318 6,737 6,373 9,318 241 $ 9,077 (2,477) 8,850 6,373 271 $ 6,102 257 $ 6,480 Refer to Notes to Consolidated Financial Statements 2018 2017 4,259 48 4,288 53 (82) (39) 4,268 4,259 $ 1,760 $ 1,760 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (In millions except per share data) Year Ended December 31, 2019 Equity Attributable to Shareowners of The Coca-Cola Company Number of Common Shares Outstanding Balance at beginning of year 4,268 Treasury stock issued to employees related to stock-based compensation plans 33 Purchases of stock for treasury (21) Balance at end of year 4,280 Common Stock $ 1,760 Capital Surplus Balance at beginning of year 16,520 Stock issued to employees related to stock-based compensation plans 433 Stock-based compensation expense 201 Other activities Balance at end of year 17,154 Reinvested Earnings Balance at beginning of year 63,234 Adoption of accounting standards! 546 Net Income attributable to shareowners of The Coca-Cola Company 8.920 Dividends (per share-$1.60.51.56 and $1.48 in 2019, 2018 and 2017, respectively) (6,845) Balance at end of year 65,855 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year (12,814) Adoption of accounting standards (564) 15,864 14,993 655 467 225 219 (36) 16.520 (3) 15.864 65,502 60,430 3,014 6,434 (6,644) 61,244 1.248 (6,320) 60.430 (11.205) (10,305) (409) Accumulate (11.205) (10,305) (409) (2,100) (12,814 900 (10,305) (50,677) 704 (1.746) (51,719) $ 16,981 (47,988) 909 (3,598 (50,677) $ 17,072 Comprehensive Income (Loss) Balance at beginning of year (12,814) Adoption of accounting standards! (564) Net other comprehensive income (los) (166) Balance at end of year (13,544) Treasury Stock Balance at beginning of year (51,719) Treasury stock issued to employees related to stock based compensation plans 501 Purchases of stock for treasury (1.026) Balance at end of year (52,244) Total Equity Attributable to Shareowners of The Coca-Cola Company $ 18,981 Equity Attributable to Noncontrolling Interests Balance at beginning of year $ 2,077 Net Income attributable to noncontrolling interests Net foreign currency transtation adjustments Dividends paid to noncontrolling interests Acquisition of interests held by noncontrolling owners (84) Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities Total Equity Attributable to Noncontrolling Interests $ 2,117 Refer to Note 1. Note 3. Note 4. Note 6 and Note 16. Refer to Notes to Consolidated Financial Statements S 1.905 $ 158 42 35 65 45 38 53 (31) (15) 3 59 101 1,805 (157) 41 7 $ 2,077 $ 1.905
