This semester we are going to use PepsiCo for the company analysis project.You can obtain information about the firm from its corporate web site at http://www.pepsico.com/Investors or at the SEC's Edgar web site at http://www.sec.gov/edgar/searchedgar/companysearch.html.

Unless otherwise indicated, all questions relate to the current annual financial statements. The answers to the following questions may not be directly found in the firm's reported information.You may have to infer it from what information is disclosed and supplement the financial information with other publicly reported information.Please indicate the source of your information. You may want to review the syllabus for information about this topic.

Audit Report

1. What are the significant cash and liquid asset accounts for Pepsi?

2.What are the critical accounting policies for cash and liquid assets?

3.What type of marketable securities or equity investments does Pepsi have?

4.What are the critical accounting policies for marketable securities or equity investments?

5.What risks do the marketable securities or equity investments present for Pepsi?

6.Review Pepsi's statement of cash flows and relevant management discussion and analysis related to liquidity. What significant trends do you see for Pepsi?

7.Review Coke's statement of cash flows. How are the trends different between Pepsi and Coke?

8.What are the audit implications of the different trends?