• PepsiCo, Inc. incurred $800 million in restructuring costs related to closing underperforming plants. The company provided the following financial figures:
  • Restructuring Costs: $800 million
  • Total Revenue: $70 billion
  • Operating Income: $9 billion
  • Net Income: $6 billion

• Requirements:
  1. Calculate PepsiCo’s net income after accounting for the restructuring costs.
  2. Prepare a comparative income statement showing the impact of restructuring costs on net income.
  3. Analyze the operating profit margin before and after the restructuring costs.
  4. Discuss the strategic reasons for undertaking restructuring activities and their financial implications.
  5. Evaluate PepsiCo’s ability to maintain profitability amid restructuring efforts.