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Individual Assignment 3-FSA: Pepsi Co. & FSA: Pepsi vs Coke DuE DE b 1. FSA: Pepsi Co. Your brother is considering investing in Pepsico common

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Individual Assignment 3-FSA: Pepsi Co. & FSA: Pepsi vs Coke DuE DE b 1. FSA: Pepsi Co. Your brother is considering investing in Pepsico common stock. He asks you, as an accounting expert, to make an analysis of the company for him. You can access annual reports of PepsiCo at www.pepsico.com. Note that all dollar amounts are in millions. REQUIRED: a) Make a 5-year trend analysis, using 2009 as the base year of 1) Net sales 2) Net Income Comment on the significance of the results (Max 1 paragraph discussion). b) Compute for 2013 and 2012 the 1) Profit margin (gross profit rate or percentage) 2) Asset turnover 3) Return on assets 4) Return on common stockholder's equity Total assets at December 31, 2011, were $72,882 and total stockholder's equity at December 31, 2011, was $20,704. How would you evaluate PepsiCo's profitability? (Max 1 paragraph discussion) c) Compute for 2013 and 2012 the 1) Debt to total assets 2) Times interest earned ratio How would you evaluate PepsiCo's long-term solvency? (Max 1 paragraph discussion) Individual Assignment 3-FSA: Pepsi Co. & FSA: Pepsi vs Coke DuE DE b 1. FSA: Pepsi Co. Your brother is considering investing in Pepsico common stock. He asks you, as an accounting expert, to make an analysis of the company for him. You can access annual reports of PepsiCo at www.pepsico.com. Note that all dollar amounts are in millions. REQUIRED: a) Make a 5-year trend analysis, using 2009 as the base year of 1) Net sales 2) Net Income Comment on the significance of the results (Max 1 paragraph discussion). b) Compute for 2013 and 2012 the 1) Profit margin (gross profit rate or percentage) 2) Asset turnover 3) Return on assets 4) Return on common stockholder's equity Total assets at December 31, 2011, were $72,882 and total stockholder's equity at December 31, 2011, was $20,704. How would you evaluate PepsiCo's profitability? (Max 1 paragraph discussion) c) Compute for 2013 and 2012 the 1) Debt to total assets 2) Times interest earned ratio How would you evaluate PepsiCo's long-term solvency? (Max 1 paragraph discussion)

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