It will be great if you can assist me in this. All of the relevant data is in this folder. You do not have to use it all of the Data but I just put it just in case. For Q1 , During the Conference Call, Pepsicos CFO stated that top management believes that in the fiscal year ending 12/31/2020 Pepsicos Sales will decline by 2.0% from the Sales the firm reported for the fiscal year ending 12/31/2019

Picture 2-5PNG are the data and qn2.png is the question

Question 1 Assume you just finished listening to an Earnings Conference Call during which Pepsico's CFO described the firm's strategic plan for the upcoming fiscal year 2020 which ends on 12/31/2020. During the Conference Call, Pepsico's CFO stated that top management believes that in the fiscal year ending 12/31/2020 Pepsico's Sales will decline by 2.0% from the Sales the firm reported for the fiscal year ending 12/31/2019. Required: Calculate the incremental operating cash flow effect of Sales Growth per, se for the year ending 12/31/2020. (40 points) Select Information from Pepsico's Statement of Cash Flows (Available in an Excel File Posted on BBD As Reported Annual Cash Flow (PARTIAL) Report Date Scale Net income Depreciation & amortization Share-based compensation expense Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Cash & cash equivalents & restricted cash - beginning of year Cash & cash equivalents & restricted cash, end of year Effect of exchange rate changes on cash & cash equivalents Net increase in cash & cash equivalents & restricted cash 12/28/2019 Thousands $7,353,000 $2,432,000 $237,000 $9,649,000 -$6,437,000 -$8,489,000 $10,769,000 $5,570,000 $78,000 -$5,199,000 12/29/2018 Thousands $12,559,000 $2,399,000 $256,000 $9,415,000 $4,564,000 -$13,769,000 $10,657,000 $10,769,000 -$98,000 $112,000 Pepsico's Income Statements (Available in an Excel File Posted on BB) As Reported Annual Income Statement Report Date Scale Net revenue Cost of sales Gross profit Selling, general & administrative expenses Operating profit Other pension & retiree medical benefits income (expense) Interest expense Interest income & other income Income before income taxes Provision forl(benefit from) income taxes Net income Less: net income attributable to noncontrolling interests Net income attributable to PepsiCo, Inc. 12/28/2019 Thousands $67,161,000 $30,132,000 $37,029,000 $26,738,000 $10,291,000 -$44,000 $1,135,000 $200,000 $9,312,000 $1,959,000 $7,353,000 -$39,000 $7,314,000 12/29/2018 Thousands $64,661,000 $29,381,000 $35,280,000 $25,170,000 $10,110,000 $298,000 $1,525,000 $306,000 $9,189,000 -$3,370,000 $12,559,000 -$44,000 $12,515,000 Pepsico's Balance Sheets (Available in an Excel File Posted on BB) ) As Reported Annual Balance Sheet Report Date Scale 12/28/2019 Thousands 12/29/2018 Thousands Short-term debt obligations Accounts payable Accrued marketplace spending Accrued compensation & benefits Income Taxes Payable Interest Payable Current lease liabilities Other current liabilities Total current liabilities Long-term debt obligations Other liabilities De ferred Income taxes Total liabilities $2,920,000 $8,013,000 $2,765,000 $1,835,000 $1,351,000 $500,000 $0 $3,077,000 $20,461,000 $29,148,000 $9,979,000 $4,091,000 $63,679,000 $4,026,000 $7,213,000 $2,541,000 $1,755,000 $1,329,000 $1,997,000 $0 $3,277,000 $22,138,000 $28,295,000 $9,114,000 $3,499,000 $63,046,000 Preferred stock Repurchased preferred stock Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Repurchased common stock, in excess of par value Total PepsiCo, Inc. common shareholders' equity Noncontrolling Interests Total equity $0 $0 $23,000 $3,886,000 $61,946,000 $14,300,000 $36,769,000 $14,786,000 $82,000 $14,868,000 $0 $0 $23,000 $3,953,000 $59,947,000 $15, 119,000 $34, 286,000 $14,518,000 $84,000 $14,602,000 Pepsico's Balance Sheets (Available in an Excel File Posted on BB) As Reported Annual Balance Sheet Report Date Scale 12/28/2019 Thousands 12/29/2018 Thousands Cash & cash equivalents Short-term investments Restricted cash Accounts receivable, net Inventorios Prepaid expenses & other current assets Total current assets $5,509,000 $229,000 $0 $7,822,000 $3,338,000 $747,000 $17,645,000 $8,721,000 $272,000 $1,997,000 $7,142,000 $3,128,000 $633,000 $21,893,000 Land Buildings & improvements Machinery & equipment, including fleet & software Construction in progress Property, plant & equipment, gross Less: accumulated depreciation Property, plant & equipment, net Amortizable intangible assets, net Goodwill Other indefinite-lived intangible assets Investments in noncontrolled affiliates Deferred income taxes Other assets Total assets $1,130,000 $9,314,000 $29,390,000 $3,169,000 $43,003,000 $23,698,000 $19,305,000 $1,433,000 $15,501,000 $14,610,000 $2,683,000 $4,359,000 $3,011,000 $78,547 000 $1,078,000 $8,941,000 $27,715,000 $2,430,000 $40,164,000 $22,575,000 $17,589,000 $1,644,000 $14,808,000 $14,181,000 $2,409,000 $4,364,000 $760,000 $77,648,000 Question 1 Assume you just finished listening to an Earnings Conference Call during which Pepsico's CFO described the firm's strategic plan for the upcoming fiscal year 2020 which ends on 12/31/2020. During the Conference Call, Pepsico's CFO stated that top management believes that in the fiscal year ending 12/31/2020 Pepsico's Sales will decline by 2.0% from the Sales the firm reported for the fiscal year ending 12/31/2019. Required: Calculate the incremental operating cash flow effect of Sales Growth per, se for the year ending 12/31/2020. (40 points) Select Information from Pepsico's Statement of Cash Flows (Available in an Excel File Posted on BBD As Reported Annual Cash Flow (PARTIAL) Report Date Scale Net income Depreciation & amortization Share-based compensation expense Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Cash & cash equivalents & restricted cash - beginning of year Cash & cash equivalents & restricted cash, end of year Effect of exchange rate changes on cash & cash equivalents Net increase in cash & cash equivalents & restricted cash 12/28/2019 Thousands $7,353,000 $2,432,000 $237,000 $9,649,000 -$6,437,000 -$8,489,000 $10,769,000 $5,570,000 $78,000 -$5,199,000 12/29/2018 Thousands $12,559,000 $2,399,000 $256,000 $9,415,000 $4,564,000 -$13,769,000 $10,657,000 $10,769,000 -$98,000 $112,000 Pepsico's Income Statements (Available in an Excel File Posted on BB) As Reported Annual Income Statement Report Date Scale Net revenue Cost of sales Gross profit Selling, general & administrative expenses Operating profit Other pension & retiree medical benefits income (expense) Interest expense Interest income & other income Income before income taxes Provision forl(benefit from) income taxes Net income Less: net income attributable to noncontrolling interests Net income attributable to PepsiCo, Inc. 12/28/2019 Thousands $67,161,000 $30,132,000 $37,029,000 $26,738,000 $10,291,000 -$44,000 $1,135,000 $200,000 $9,312,000 $1,959,000 $7,353,000 -$39,000 $7,314,000 12/29/2018 Thousands $64,661,000 $29,381,000 $35,280,000 $25,170,000 $10,110,000 $298,000 $1,525,000 $306,000 $9,189,000 -$3,370,000 $12,559,000 -$44,000 $12,515,000 Pepsico's Balance Sheets (Available in an Excel File Posted on BB) ) As Reported Annual Balance Sheet Report Date Scale 12/28/2019 Thousands 12/29/2018 Thousands Short-term debt obligations Accounts payable Accrued marketplace spending Accrued compensation & benefits Income Taxes Payable Interest Payable Current lease liabilities Other current liabilities Total current liabilities Long-term debt obligations Other liabilities De ferred Income taxes Total liabilities $2,920,000 $8,013,000 $2,765,000 $1,835,000 $1,351,000 $500,000 $0 $3,077,000 $20,461,000 $29,148,000 $9,979,000 $4,091,000 $63,679,000 $4,026,000 $7,213,000 $2,541,000 $1,755,000 $1,329,000 $1,997,000 $0 $3,277,000 $22,138,000 $28,295,000 $9,114,000 $3,499,000 $63,046,000 Preferred stock Repurchased preferred stock Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Repurchased common stock, in excess of par value Total PepsiCo, Inc. common shareholders' equity Noncontrolling Interests Total equity $0 $0 $23,000 $3,886,000 $61,946,000 $14,300,000 $36,769,000 $14,786,000 $82,000 $14,868,000 $0 $0 $23,000 $3,953,000 $59,947,000 $15, 119,000 $34, 286,000 $14,518,000 $84,000 $14,602,000 Pepsico's Balance Sheets (Available in an Excel File Posted on BB) As Reported Annual Balance Sheet Report Date Scale 12/28/2019 Thousands 12/29/2018 Thousands Cash & cash equivalents Short-term investments Restricted cash Accounts receivable, net Inventorios Prepaid expenses & other current assets Total current assets $5,509,000 $229,000 $0 $7,822,000 $3,338,000 $747,000 $17,645,000 $8,721,000 $272,000 $1,997,000 $7,142,000 $3,128,000 $633,000 $21,893,000 Land Buildings & improvements Machinery & equipment, including fleet & software Construction in progress Property, plant & equipment, gross Less: accumulated depreciation Property, plant & equipment, net Amortizable intangible assets, net Goodwill Other indefinite-lived intangible assets Investments in noncontrolled affiliates Deferred income taxes Other assets Total assets $1,130,000 $9,314,000 $29,390,000 $3,169,000 $43,003,000 $23,698,000 $19,305,000 $1,433,000 $15,501,000 $14,610,000 $2,683,000 $4,359,000 $3,011,000 $78,547 000 $1,078,000 $8,941,000 $27,715,000 $2,430,000 $40,164,000 $22,575,000 $17,589,000 $1,644,000 $14,808,000 $14,181,000 $2,409,000 $4,364,000 $760,000 $77,648,000