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PepsiCo Inc. provides the following as of December 31, 2022: Balance Sheet: Cash: $8 billion Accounts Receivable: $10 billion Inventory: $4 billion Total Current Assets:

PepsiCo Inc. provides the following as of December 31, 2022:

  • Balance Sheet:
    • Cash: $8 billion
    • Accounts Receivable: $10 billion
    • Inventory: $4 billion
    • Total Current Assets: $22 billion
    • Total Assets: $80 billion
    • Accounts Payable: $7 billion
    • Short-term Debt: $3 billion
    • Long-term Debt: $25 billion
    • Shareholders’ Equity: $45 billion
  • Income Statement:
    • Revenue: $70 billion
    • Cost of Goods Sold: $35 billion
    • Operating Expenses: $20 billion
    • Interest Expense: $1.5 billion
    • Tax Rate: 24%

Requirements:

  1. Calculate the current ratio.
  2. Determine the operating margin.
  3. Compute the debt-to-equity ratio.
  4. Evaluate the net profit margin.

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