PepsiCo, Inc. Income Statement Years Ended December 25, 2010 and December 26, 2009 (in millions) Net sales Cost of goods sold Gross margin Selling and administrative expenses Other operating expenses Operating income Interest expense Other income (expense; net) Income before taxes Income tax expense Net income 2010 $57,838 26,575 531,263 22,814 117 $ 8,332 903 785 $ 8,214 1,894 $ 6,320 2009 $43,232 20,099 $23,133 15,026 63 $ 8,044 397 399 $ 8,046 2,100 $ 5,946 Given the financial statements of Pepsi Cola, Inc. Solve for the following: A. Profitability Ratios 1. Return on Assets 2. Return on Equity 3. Gross Profit Margin 4. Net Profit Margin 5. Operating Income Margin II. Applications. PepsiCo, Inc. Balance Sheet December 25, 2010 and December 26, 2009 2010 2009 $ 5,943 426 6,323 3,372 1,505 $ 3.943 192 4,624 2,618 1,194 19.058 28,469 3,057 5681 12,671 9,157 5.449 $39,848 Assets Currents assets Cash and cash equivalents Marketable securities Accounts receivable (net) Merchandise Inventory Other current assets Noncurrent assets Property, plant and equipment (net) Intangible assets Other assets Total assets Liabilities and shareholders' equity Current liabilities Short-term obligations Accounts payable and other abilities Income taxes payable Noncurrent liabilities Long-term debt Other liabilities and deferred taxes Shareholders' equity Preferred stock inet of repurchased stock) Common stock Retained earnings Accumulated income foss) Treasury stock Total abilities and shareholder's equity 54,898 10,923 71 5464 8,127 165 7.400 19,999 10,786 6.250 1104 (100) 4,558 37.402 (3,630) (16,745) $168.13 280 34,443 3,794) (13,383) $39,48 B. Efficiency Ratio 1. Accounts Receivable Turnover 2. Average Collection Period 3. Inventory Turnover 4. Average Age of Inventory 5. Assets Turnover 6. Fixed Assets Turnover C. Liquidity and Solvency Ratio 1. Debt Ratio 2. Debt-Equity Ratio 3. Time Interest Earned 4. Current Ratio 5. Quick Ratio Goodluck