For the company PepsiCo, Inc. Using the 10k (or annual report and 10k) for the Fiscal year 2019.
Section IV Add one textbox for EACH of the following: 1. ROI: What does ROI tell management? Which segments have the best and worst ROI or are they roughly the same (how do they compare)? How could a segment of this company improve its ROI? Give me an example of a specific action that could be taken to improve ROI. 2. Sales Margin: What does Sales Margin tell management? Which segments have the best and worst or are they roughly the same (how do they compare)? How could a segment of this company improve its sales margin? Give me an example of a specific action that could be taken to improve sales margin. 3. Capital Turnover: What does Capital Turnover tell management? Which divisions have the best and worst? How do they compare? How could a segment of this company improve its capital turnover? Give me an example of a specific action that could be taken to improve capital turnover. 4. Residual Income: What does Residual Income tell management? Do any of the segments fall short of management's expectations? How can you tell? 5. Allocation decision: If you were upper management (CEO of the whole corporation), and had excess funds to allocate among divisions, which division would you allocate those funds to and why? 6. Responsibility Accounting What type of Responsibility centers are i) the 6 divisions, ii) corporate? 7. Measurement issues When you did the ROI, sales margin, capital turnover, and residual income calculations, using the segment information provided in the footnotes, did you use the 1) gross book value (GBV) of the assets, or 2) net book value (NBV) of the assets? How can you tell? (HINT: Look at the Consolidated Balance Sheet on page 81 of the 10k) What is the risk when companies use the NBV for assessing ROI. 8. Check grading rubric to make sure you have done everything required. Section IV Add one textbox for EACH of the following: 1. ROI: What does ROI tell management? Which segments have the best and worst ROI or are they roughly the same (how do they compare)? How could a segment of this company improve its ROI? Give me an example of a specific action that could be taken to improve ROI. 2. Sales Margin: What does Sales Margin tell management? Which segments have the best and worst or are they roughly the same (how do they compare)? How could a segment of this company improve its sales margin? Give me an example of a specific action that could be taken to improve sales margin. 3. Capital Turnover: What does Capital Turnover tell management? Which divisions have the best and worst? How do they compare? How could a segment of this company improve its capital turnover? Give me an example of a specific action that could be taken to improve capital turnover. 4. Residual Income: What does Residual Income tell management? Do any of the segments fall short of management's expectations? How can you tell? 5. Allocation decision: If you were upper management (CEO of the whole corporation), and had excess funds to allocate among divisions, which division would you allocate those funds to and why? 6. Responsibility Accounting What type of Responsibility centers are i) the 6 divisions, ii) corporate? 7. Measurement issues When you did the ROI, sales margin, capital turnover, and residual income calculations, using the segment information provided in the footnotes, did you use the 1) gross book value (GBV) of the assets, or 2) net book value (NBV) of the assets? How can you tell? (HINT: Look at the Consolidated Balance Sheet on page 81 of the 10k) What is the risk when companies use the NBV for assessing ROI. 8. Check grading rubric to make sure you have done everything required
