The Company is PepsiCo

1. Evaluate the use of debt.

Required:

a. Calculate the following ratios:

i. Long-term debt-to-assets ratio

ii. Interest coverage ratio

iii. Debt service coverage ratio

b. Calculate the same ratios for your competitor companies and comment on your companys relative solvency and use of leverage

c. Review Item 7a in your companys and its two competitors 10-K reports and summarize the companies disclosure of information on market risk.

d. Comment on your companys comparative use of derivatives.

2. Analyze income tax expense and income taxes payable.

Required:

a. Analyze your companys provision for income taxes and income taxes payable including:

i. The amount of income taxes that would have been paid at the statutory rate and the amount actually paid

ii. Changes in the deferred tax asset and liability accounts

iii. Changes (if any) in the amounts of income tax carrybacks and carryforwards

b. Conduct a similar analysis for your two competitor companies and discuss any differences you find.

3. Use of leases

Required:

a. Review the financial statements of your company and its two competitors to determine if they are using leases as a part of their financing activities strategy.

b. Contrast your companys leasing strategy with those of its competitors.

Ensure that your paper is organized and formatted to APA 6th edition. Cite all references. No plagiarizing.

Not due until June 8, 2016 at 4:00pm