The financial statements of Coca$-$Cola and PepsiCo are presented in Appendices C and D$,$ respectively. The companies$$ complete annual reports, including the notes to the financial statements, are available online.

Instructions

Use the companies$$ financial information to answer the following questions.

Where is $$depreciation and amortization$$ reported by Coca$-$Cola and PepsiCo in their statements of cash flows? What is the amount and why does it appear in that section of the statement of cash flows?

Based on the information contained in Coca$-$Cola$$s and PepsiCo$$s financial statements, compute the following $2020$ ratios for each company. These ratios require the use of statement of cash flows data. $($These ratios were covered in Chapter $4.)$

Current cash debt coverage.

Cash debt coverage.

What conclusions concerning the management of cash can be drawn from the ratios computed in $($e$)?$