Principles of Finance:

Q1a. Consider the income statement given below and perform Percentage Change Analysis for the entire Income Statement.

b. Comment on what changes PepsiCo has observed as they move from the year 2009 to the year 2010.

PepsiCo, Inc. Income Statement Years Ended December 25, 2010 and December 26, 2009 (in millions) 2010 2009 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 $57,838 26,575 $31,263 22,814 117 $ 8,332 903 785 $ 8,214 1,894 $ 6,320 $43,232 20,099 $ 23,133 15,026 63 $ 8,044 397 399 $ 8,046 2,100 $ 5,946