PepsiCo, Inc.'s financial statements are presented in Appendix B. Click here to view Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Click here to view Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively. (a) Your answer is incorrect. What percentage of authorized shares was issued by Coca-Cola at December 31, 2019, and by PepsiCo at December 28, 2019? (Round answers to 1 decimal place, e.g. 52.3%.) PepsiCo 18.93 % Coca-Cola Percentage of authorized shares was issued 35.82 % Specimen Financial Statements: PepsiCo, Inc. PepsiCo, Inc. is a world leader in convenient snacks, foods, and beverages. The following are PepsiCo's financial statements as presented in its 2019 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions except per share amounts) 2019 2018 2017 Net Revenue Cost of sales $ 67,161 $ 64,661 $63,525 30,132 29,381 28,796 Gross profit 37,029 35,280 34,729 Selling, general and administrative expenses 26,738 25,170 24,453 Operating Profit 10,291 10,110 10,276 Other pension and retiree medical benefits (expense)/income (44) 298 233 Interest expense (1,135) (1,525) (1,151) Interest income and other 200 306 244 Income before income taxes 9,312 9,189 9,602 Provision for/(benefit from) income taxes (See Note 5) 1,959 (3,370) 4,694 Net income 7,353 12,559 4,908 Less: Net income attributable to noncontrolling interests 39 44 51 $ 7,314 $ 12,515 $ 4,857 Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted Weighted-average common shares outstanding Basic Diluted $ 5.23 $ 5.20 $ 8.84 $ 3.40 $ 8.78 $ 3.38 1,399 1,415 1,425 1,407 1,425 1,438 Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 Net income Other comprehensive income/(loss), net of taxes: Net currency translation adjustment Net change on cash flow hedges Net pension and retiree medical adjustments Net change on available-for-sale securities Other Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive Income Attributable to PepsiCo (in millions) 2019 2018 2017 $ 7,353 $ 12,559 $ 4,908 628 (90) 283 (1,641) 1,109 40 (36) (467) (159) (2) 6 (68) - 16 819 (2,062) 862 8,172 10,497 5,770 (39) $8,133 (44) $ 10,453 (51) $5,719 See accompanying notes to the consolidated financial statements. Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2019 2018 2017 Operating Activities Net income Depreciation and amortization Share-based compensation expense Restructuring and impairment charges Cash payments for restructuring charges $ 7,353 2,432 $ 12,559 $ 4,908 2,399 2,369 237 256 292 370 308 295 (350) (255) (113) Pension and retiree medical plan expenses 519 221 221 Pension and retiree medical plan contributions (716) (1,708) (220) Deferred income taxes and other tax charges and credits 453 (531) 619 Net tax related to the TCJ Act (8) (28) 2,451 Tax payments related to the TCJ Act (423) (115) Other net tax benefits related to international reorganizations (2) (4,347) Change in assets and liabilities: Accounts and notes receivable (650) (253) (202) Inventories (190) (174) (168) Prepaid expenses and other current assets (87) 9 20 Accounts payable and other current liabilities 735 882 201 Income taxes payable (287) 448 (338) Other, net 263 (256) (305) Net Cash Provided by Operating Activities 9,649 9,415 10,030 Specimen Financial Statements: The Coca-Cola Company The Coca-Cola Company is a global leader in the beverage industry. It offers hundreds of brands, including soft drinks, fruit juices, sports drinks, and other beverages, in more than 200 countries. The following are Coca-Cola's financial statements as presented in its 2019 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) Year Ended December 31, Net Operating Revenue Cost of goods sold Gross Profit Selling, general and administrative expenses Other operating charges Operating Income Interest income Interest expense Equity income (loss)-net Other income (loss)-net Income Before Income Taxes Income taxes Consolidated Net Income Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basic Net Income Per Share Diluted Net Income Per Share Average Shares Outstanding-Basic Effect of dilutive securities Average Shares Outstanding-Diluted 'Calculated based on net income attributable to shareowners of The Coca-Cola Company. Refer to Notes to Consolidated Financial Statements. 2019 2018 2017 $37,266 $ 34,300 $ 36,212 14,619 13,067 13,721 22,647 21,233 22,491 12,103 11,002 12,834 458 1,079 1,902 10,086 9,152 7,755 563 689 679 946 950 853 1,049 1,008 1,072 34 (1,674) (1,763) 8,225 6,890 1,749 5,607 6,476 1,283 65 42 35 $ 6,434 $ 1,248 $ 1.51 $ 0.29 $ 1.50 $ 0.29 4,259 40 4,272 52 4,299 4,324 Year Ended December 31, THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Consolidated Net Income Other comprehensive income: Net foreign currency translation adjustments 2019 2018 2017 $8,985 $6,476 $1,283 Net gains (losses) on derivatives Net change in unrealized gains (losses) on available-for-sale securities Net change in pension and other benefit liabilities Total Comprehensive Income Less: Comprehensive income attributable to noncontrolling interests 74 (2,035) 861 (54) (7) (433) 18 (34) 188 (159) 29 322 8,864 4,429 2,221 110 95 73 Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company $8,754 $4,334 $ 2,148 Refer to Notes to Consolidated Financial Statements. APPENDIX C Specimen Financial Statements: The Coca-Cola Company C-3 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31, Current Assets Cash and cash equivalents Short-term investments 2019 2018 ASSETS $ 6,480 $ 9,077 1,467 2,025 Total Cash, Cash Equivalents and Short-Term Investments 7,947 11,102 Marketable securities 3,228 5,013 Trade accounts receivable, less allowances of $524 and $501, respectively 3,971 3,685 Inventories 3,379 3,071 Prepaid expenses and other assets 1,886 2,059 Total Current Assets 20,411 24,930 Equity method investments Other investments Other assets Deferred income tax assets Property, plant and equipment-net Trademarks with indefinite lives 19,025 19,412 854 867 6,075 4,148 2,412 2,674 10,838 9,598 9,266 6,682 Bottlers' franchise rights with indefinite lives Goodwill Other intangible assets 109 51 16,764 627 14,109 745 Total Assets $86,381 $ 83,216 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Total Current Liabilities Long-term debt Other liabilities Deferred income tax liabilities $11,312 $9,533 10,994 13,835 4,253 5,003 414 411 26,973 28,782 27,516 25,376 8,510 7,646 2,284 2,354 The Coca-Cola Company Shareowners' Equity Common stock, $0.25 par value; authorized-11,200 shares; issued-7,040 shares 1,760 1,760 Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost-2,760 and 2,772 shares, respectively 17,154 16,520 65,855 63,234 (13,544) (12,814) (52,244) (51,719) Equity Attributable to Shareowners of The Coca-Cola Company Equity attributable to noncontrolling interests Total Equity 18,981 16,981 2,117 2,077 21,098 19,058 Total Liabilities and Equity $86,381 $83,216 Refer to Notes to Consolidated Financial Statements