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. (a1) Based on the information contained in these financial statements, determine the following for PepsiCo Inc's. (Enter the amounts in millions.) +A +A $ 1. Total assets at December 28, 2019. 2. Accounts (notes) receivable, net at December 28, 2019. 3. Net revenues for year ended in 2019. 4. Net income for year ended in 2019. PepsiCo Inc.'s +A $ Specimen Financial Statements: PepsiCo, Inc. Appendix B 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 $ 8.84 $ 3.40 $ 5.20 $ 8.78 $ 3.38 1,399 1,415 1,425 1,407 1,425 1,438 Net income Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 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 (1,641) 1,109 (90) 283 40 (467) (36) (159) (2) 6 (68) 16 819 (2,062) 862 8,172 10,497 5,770 (39) (44) (51) $8,133 $10,453 $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 (continues) 2019 2018 2017 Investing Activities Capital spending (4,232) (3,282) (2,969) Sales of property, plant and equipment 170 134 180 Acquisition of SodaStream, net of cash and cash equivalents acquired Other acquisitions and investments in noncontrolled affiliates (1,939) (778) (1,197) - (299) (61) Divestitures 253 505 267 Short-term investments, by original maturity: More than three months-purchases More than three months-maturities More than three months-sales (5,637) (18,385) 16 12,824 15,744 62 1,498 790 Three months or less, net 19 16 2 Other investing, net (8) 2 29 Net Cash (Used for)/Provided by Investing Activities (6,437) 4,564 (4,403) Financing Activities Proceeds from issuances of long-term debt 4,621 7,509 Payments of long-term debt (3,970) (4,007) (4,406) Debt redemption/cash tender and exchange offers (1,007) (1,589) Short-term borrowings, by original maturity: More than three months-proceeds More than three months-payments Three months or less, net Cash dividends paid Share repurchases-common Share repurchases-preferred Proceeds from exercises of stock options 3 91 (2) (17) (128) (3) (1,352) (1,016) (5,304) (4,930) (4,472) (3,000) (2,000) (2,000) - (2) (5) 329 281 462 (114) (103) (145) (45) (53) (76) (8,489) (13,769) (4,186) 78 (98) (5,199) 112 47 1,488 10,769 10,657 9,169 $ 5,570 $ 10,769 $ 10,657 Withholding tax payments on restricted stock units (RSUS), performance stock units (PSUs) and PepsiCo equity performance units (PEPunits) converted Other financing Net Cash Used for Financing Activities Effect of exchange rate changes on cash and cash equivalents and restricted cash Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents and Restricted Cash, Beginning of Year Cash and Cash Equivalents and Restricted Cash, End of Year See accompanying notes to the consolidated financial statements. ASSETS Current Assets Cash and cash equivalents Short-term investments Restricted cash Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 28, 2019 and December 29, 2018 (in millions except per share amounts) 2019 2018 $ 5,509 $ 8,721 229 - 272 1,997 7,142 Accounts and notes receivable, net 7,822 Inventories 3,338 3,128 Prepaid expenses and other current assets 747 633 Total Current Assets 17,645 21,893 Property, Plant and Equipment, net 19,305 17,589 Amortizable Intangible Assets, net Goodwill 1,433 1,644 15,501 14,808 Other indefinite-lived intangible assets Indefinite-Lived Intangible Assets Investments in Noncontrolled Affiliates Deferred Income Taxes Other Assets Total Assets 14,610 14,181 30,111 28,989 2,683 2,409 4,359 4,364 3,011 760 $ 78,547 $77,648 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Deferred Income Taxes Other Liabilities Total Liabilities Commitments and contingencies PepsiCo Common Shareholders' Equity $ 2,920 $ 4,026 17,541 18,112 20,461 22,138 29,148 28,295 4,091 3,499 9,979 9,114 63,679 63,046 Common stock, par value 1% per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,391 and 1,409 shares, respectively) 23 23 Capital in excess of par value 3,886 3,953 Retained earnings 61,946 59,947 Accumulated other comprehensive loss (14,300) (15,119) Repurchased common stock, in excess of par value (476 and 458 shares, respectively) (36,769) (34,286) Total PepsiCo Common Shareholders' Equity 14,786 14,518 Noncontrolling interests 82 Total Equity 14,868 Total Liabilities and Equity $ 78,547 84 14,602 $ 77,648 See accompanying notes to the consolidated financial statements. Preferred Stock Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) Balance, beginning of year Conversion to common stock Retirement of preferred stock Balance, end of year Repurchased Preferred Stock Balance, beginning of year Redemptions Retirement of preferred stock Balance, end of year 2019 2018 2017 Shares Amount Shares Amount Shares Amount 0.8 41 0.8 41 (0.1) (0.7) (35) 1 (0.7) (197) (0.7) (192) (2) (5) 0.7 199 (0.7) (197) Common Stock Balance, beginning of year Share issued in connection with preferred stock conversion to common stock Change in repurchased common stock 1,409 23 1,420 24 1,428 24 Balance, end of year 1 (18) (12) 1,391 23 1,409 |2| 1 (1) (8) 1,420 24 Capital in Excess of Par Value Balance, beginning of year Share-based compensation expense 3,953 235 3,996 250 4,091 290 Equity issued in connection with preferred stock conversion to common stock Stock option exercises, RSUs, PSUs and 6 (188) (193) (236) PEPunits converted Withholding tax on RSUs, PSUs and PEPunits converted Other Balance, end of year (114) (103) (145) (3) 3,886 3,953 3,996 Retained Earnings Balance, beginning of year 59,947 52,839 52,518 Cumulative effect of accounting changes 8 (145) Net income attributable to PepsiCo 7,314 12,515 Cash dividends declared-common(a) (5,323) (5,098) 4,857 (4,536) Retirement of preferred stock (164) Balance, end of year 61,946 59,947 52,839 Accumulated Other Comprehensive Loss Balance, beginning of year (15,119) (13,057) (13,919) Other comprehensive income/(loss) attributable to PepsiCo 819 (2,062) 862 Balance, end of year (14,300) (15,119) (13,057) (continues) B-6 APPENDIX B Specimen Financial Statements: PepsiCo, Inc. 2019 2018 2017 Shares Amount Shares Amount Shares Amount Repurchased Common Stock Balance, beginning of year (458) (34,286) (446) (32,757) (438) (31,468) Share repurchases (24) (3,000) (18) (2,000) (18) (2,000) Stock option exercises, RSUs, PSUs and PEPunits converted 516 6 469 10 708 Other 2 3 Balance, end of year (476) (36,769) (458) (34,286) (446) (32,757) Total PepsiCo Common Shareholders' Equity 14,786 14,518 11,045 Noncontrolling Interests Balance, beginning of year Net income attributable to noncontrolling interests 84 39 92 44 104 51 Distributions to noncontrolling interests (42) Other, net 1 Balance, end of year Total Equity 82 $14,868 (49) (3) 84 $ 14,602 (62) (1) 92 $ 10,981 (a) Cash dividends declared per common share were $3.7925, $3.5875 and $3.1675 for 2019, 2018 and 2017, respectively. See accompanying notes to the consolidated financial statements