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How do I solve this? Analyzing Cash Flows from Operating Activities; Interpreting the Quality of Income Ratio A recent annual report for PepsiCo contained the
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Analyzing Cash Flows from Operating Activities; Interpreting the Quality of Income Ratio A recent annual report for PepsiCo contained the following information for the period (dollars in millions): $6,462 2,737 666 331 Net income Depreciation and amortization Increase in accounts receivable Increase in inventory Increase in prepaid expense Increase in accounts payable Decrease in taxes payable Increase in other current liabilities Cash dividends paid Treasury stock purchased 520 340 589 3,157 2,489 Required: 1. Compute cash flows from operating activities for PepsiCo using the indirect method. 2. Compute the quality of income ratio. 3. What were the major reasons that PepsiCo's quality of income ratio did not equal 1.0Step by Step Solution
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