Question
Question 3 Inventory accounts: Using the excerpts below from PepsiCo, Inc.s Financial Statements and Notes to Financial Statements from its 2019 annual report, answer the
Question 3 Inventory accounts: Using the excerpts below from PepsiCo, Inc.s Financial Statements and Notes to Financial Statements from its 2019 annual report, answer the following (NOTE: all numbers given in the excerpts are in $millions):
- If PepsiCo. purchased $2,956 million worth of raw materials and packaging during the fiscal year ended 12/28/2019, how much raw materials and packaging did they use during the fiscal year ended 12/28/2019?
- Calculate the Cost of Goods Manufactured for PepsiCo. for the fiscal year ended 12/28/2019
Consolidated Balance Sheet
PepsiCo, Inc. and Subsidiaries
December 28, 2019 and December 29, 2018
(in millions except per share amounts)
2019
2018
ASSETS
Current Assets
Cash and cash equivalents
$ 5,509
$ 8,721
Short-term investments
$ 229
$ 272
Restricted cash
$ -
$ 1,997
Accounts and notes receivable, net
$ 7,822
$ 7,142
Inventories
$ 3,338
$ 3,128
Prepaid expenses and other current assets
$ 747
$ 633
Total Current Assets
$ 17,645
$ 21,893
Note 15 Supplemental Financial Information
Balance Sheet
Inventories
2019
2018
Raw materials and packaging
$ 1,395
$ 1,312
Work-in-process
$ 200
$ 178
Finished goods
$ 1,743
$ 1,638
Total
$ 3,338
$ 3,128
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
$ 67,161
$ 64,661
$ 63,525
Cost of sales
$ 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
Net Income Attributable to PepsiCo
$ 7,314
$ 12,515
$ 4,857
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Financial and Managerial Accounting Using Excel for Success
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
1st edition
1111535221, 1111535223, 9781285400914 , 978-1111993979
