Make sure to follow all instrctions closely and do everything within EXCEL. Thank you!!

A B Pts Possible W N H Using a 10(k) - Correct information listed on "Directions" worksheet. 20 Table 1-Proper column/row headings and data 10 Table 1-Formatted per directions 4 5 Graph 1 with a reasonable title 4 6 Observations/comments about Graph 1 7 Table 2 -proper calculations 12 8 Table 2 - formatted per directions 9 Graph 2 - Correct ROI column chart 10 ROI questions-Define; Compare; How to improve (1 pt each) 11 Sales margin questions- Define; Compare; How to improve (1 pt each) 12 Capital turnover questions- Define; Compare; How to improve (1 pt each) 13 Residual income question:-Define; which fall short; How can you tell (1 pt each) Allocation of excess funds: Explanation of decision 15 Responsibility center questions 16 Gross book value or net book value. How can you tell? Risk when NBV is used? 6 Points will be deducted for sloppy work, spelling and punctuation errors, etc. Assume you are preparing 17 this report for a client. 18 TOTAL POINTS 100 19 Directions and 10K Grading Rubric +SECTION II 1. In a new spreadsheet (name it "Segment Analysis"), set up four column headings: Division; Assets; Operating Income; Revenue. Your rows should list the six reportable segments. 2. Input the 2018 data for the six segments. Expand column widths as needed. Keep the amounts as shown (in millions); don't add zeros. 3. Use the "Number" section of the menu bar to format the data as "currency" (dollar signs and commas). Use the "decimal remove" button to delete unnecessary decimals. 4. Use "Format as a Table" or shading to improve the visual look of your data table. 5. Next, add a column chart to visually display this data. To do this, highlight the entire data table. Then click on the "insert" tab on the ribbon. Then click on the "Column" Chart. Add a title to your chart. Expand the chart size if needed. 63 . Add a textbox ("Insert" on ribbon; "Textbox"] to comment on the graph. What observations about the graph stand out to you? SECTION III 1. Add a new table a few lines below the first table. The second data table should have the following column headings: Division, ROI, Sales Margin, Capital Turnover, and Residual Income. "Copy" and "paste" the division names into the new table. 2. For the first company segment listed, insert formulas to calculate ROI, Sales Margin, Capital Turnover, and 72 Residual Income (assume the company has a 25% target rate of return). 73 74 B. Use the "Copy" and "Paste" commands to copy the same formulas into the appropriate cell for each division. 75 Alternatively, drag the autofill handle to fill in the formulas for the other segments. 76 77 4. Use the "%%" on the "Number" section of the ribbon to format the ROI and Sales Margin as percentages. Use 78 the "decimal remove" button to decrease the number of decimals on the Capital Turnover statistic (two decimal should be sufficient). Format the Capital Turnover as a plain number. Format the residual income as a dollar amount. 80 6. Add a column chart that compares the ROI of each segment. Add a title and size the chart as needed. (Only the chart of the ROI is required. You do NOT need to make charts of the other ratios.) Section IV Add one textbox for EACH of the following: 1. ROL: 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 98 What does Capital Turnover tell management? 99 Which divisions have the best and worst? How do they compare? 100 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. 101 102 4. Residual Income: 103 What does Residual Income tell management? 104 Do any of the segments fall short of management's expectations? How can you tell? 105 106 5. Allocation decision: f 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 107 and why? 108 109 6. Responsibility Accounting 110 What type of Responsibility centers are i) the 6 divisions, ii) corporate? 111 112 7. Measurement issues 113 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) 114 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 115 the 10k) What is the risk when companies use the NBV for assessing ROI. 116 8. Check grading rubric to make sure you have done everything required. 117 118Segment (Division) Evaluation In this assignment you will analyze the performance of PepsiCo's divisions. SFAS 131 requires publicly traded companies to disclose division information in the notes to the financial statements. You will use Excel to create visually appealing data tables and bar charts to analyze division performance, and then comment on the results. Be sure to follow all of the instructions carefully to maximize the number of points available. 10 11 12 13 Reg. Answer Additional information/description/business reason 14 SECTION ! 1 15 Google the 10K (or annual report and 10K) for Fiscal year 2018 for PepsiCo. You should be able to download it 16 from the Investor Relations section of Pepsi's website. 2 17 i. 18 1. Locate the Table of Contents in the 10K . The Table of Contents for all 10Ks follow a standard format. What ii. 19 s "Item 1" in the 10K Table of Contents? Put your answer in the box to the right. iii 20 iv. 21 2. Go to "Item 1" . What are the six reportable segments? List them in the answer box to the right (use their abbreviations). Next, skim through the detailed description of each division (they start on the next page). In V. 22 23 column N to the right), give a brief description, along with a few examples of their notable products. 24 The next series of questions can be answered by looking at some of the main headings in Item 1 until you find 3 25 the associated topics. ii. 3. What three methods does Pepsi use to distribute its products? List the three (column M) . In Column N, use iii. 28 your own words to summarize the business reasons for each distribution method. Finally, how else are the iv. 29 products distributed (iv) ? 30 31 4. What are some of the primary raw materials used in the products? ii. What are some of the primary raw i. For products: 32 materials for the packaging? ii. For packaging: 33 5. Does the business experience seasonality? If so, when are sales generally the highest? 34 5 35 6. List three of the company's primary competitors. 36 6 37 7. Go to the table of contents. i. What Item number contains "Management's Discussion and Analysis of 38 Financial Condition and Results of Operations"? li. What page number does it start on? Go to that page. ii. 39 8. Look down the list of Notes to the Financial Statements (Note 1 through Note 15). i. Which Note will give iii. 40 41 more information about the Divisions? ii. What page does it start on? Go to that page and scroll through the note until you come to the tables that give the financial information that you'll need to calculate ROI, Sales 7 42 43 Margin, and Capital Turnover. i. 44 45 46 47 SECTION II ii