Week 2 Assignment

Need as soon as possible

Application: Communicating Financial Performance

Todays organizations can be very large and complex. As a result, many people within the organization may not have a clear vision of how their role contributes to the overall value of the organization or an understanding of the financial metrics used to measure their performance and that of their department. As a manager, you must be able to communicate your organizations financial condition in clear language to direct reports and frontline employees.

To prepare for this weeks Assignment, imagine that you are the manager of a bottling distribution center for Pepsi and your department subordinates have been asking you about Pepsis financial condition and competitive position. In order to answer their questions, complete the following steps:

1. PepsiCo is a firm that provides comprehensive financial statements. Go tohttp://finance.yahoo.com/. In the search box type in the symbol for PepsiCo, PEP, into the box and click the Search Finance button.
2. When the page loads, scroll all the way down to Financials in the menu bar and click on Income Statement. Then, compute the annual percentage change among the three years shown for the following:
   1. Total Revenue
   2. Net Income Applicable to Common Shares
3. Next, click on Balance Sheet, which is also under Financials, and compute the annual percentage change among the three years for the following:
   1. Total Assets
   2. Total Liabilities

With the information you collected from the website, write a brief script to explain Pepsis financial situation to your subordinates. Be sure to write in a relatable way. Assume that some of the people on your team on the bottling line may not understand financial terms like assets, liabilities, net income, etc.

General Guidance on Assignment Length:Your assignment will typically be 2 to 4 pages (1 to 2 pages if single spaced), excluding a title page and references. Refer to the Week 2 Assignment Rubric for grading elements and criteria. Your Instructor will use the rubric to assess your work.

Submityour Assignment by Day 7.

Income Statement All numbers in thousands Period Ending 12/26/2015 12/27/2014 12/28/2013 Total Revenue 63,056,000 66,683,000 66,415,000 Cost of Revenue 28,384,000 30,884,000 31,243,000 Gross Profit 34,672,000 35,799,000 35,172,000 - - - 24,885,000 26,126,000 25,357,000 1,359,000 1,359,000 1,359,000 75,000 92,000 110,000 Total Operating Expenses - - - Operating Income or Loss 8,353,000 9,581,000 9,705,000 59,000 85,000 97,000 8,412,000 9,666,000 9,802,000 970,000 909,000 911,000 7,442,000 8,757,000 8,891,000 Operating Expenses Research Development Selling General and Administrative Non Recurring Others Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense 1,941,000 2,199,000 2,104,000 107,000 110,000 110,000 5,452,000 6,513,000 6,740,000 Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - 5,452,000 6,513,000 6,740,000 - - - 5,452,000 6,513,000 6,740,000 Minority Interest Net Income From Continuing Ops Non-recurring Events Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Cash Flow All numbers in thousands Period Ending 12/26/2015 12/27/2014 12/28/2013 5,452,000 6,513,000 6,740,000 Depreciation 2,416,000 2,625,000 2,663,000 Adjustments To Net Income 1,956,000 433,000 -371,000 -461,000 -343,000 -88,000 Changes In Liabilities 1,747,000 1,533,000 1,093,000 Changes In Inventories -244,000 -111,000 4,000 Changes In Other Operating Activities -335,000 -189,000 -400,000 10,580,000 10,506,000 9,688,000 -2,758,000 -2,859,000 -2,795,000 Investments -400,000 -2,386,000 -48,000 Other Cash flows from Investing Activities -411,000 308,000 218,000 -3,569,000 -4,937,000 -2,625,000 Dividends Paid -4,040,000 -3,730,000 -3,434,000 Sale Purchase of Stock -4,501,000 -4,267,000 -1,905,000 Net Income Operating Activities, Cash Flows Provided By or Used In Changes In Accounts Receivables Total Cash Flow From Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents 4,632,000 -331,000 1,466,000 -52,000 -50,000 -33,000 -3,828,000 -8,264,000 -3,789,000 -221,000 -546,000 -196,000 2,962,000 -3,241,000 3,078,000 Balance Sheet All numbers in thousands Period Ending 12/26/2015 12/27/2014 12/28/2013 9,096,000 6,134,000 9,375,000 Current Assets Cash And Cash Equivalents Short Term Investments 2,913,000 2,592,000 303,000 Net Receivables 6,437,000 6,651,000 6,954,000 Inventory 2,720,000 3,143,000 3,409,000 Other Current Assets 1,865,000 2,143,000 2,162,000 Total Current Assets 23,031,000 20,663,000 22,203,000 2,311,000 2,689,000 2,623,000 Property Plant and Equipment 16,317,000 17,244,000 18,575,000 Goodwill 14,177,000 14,965,000 16,613,000 Intangible Assets 13,081,000 14,088,000 16,039,000 - - - 750,000 860,000 1,425,000 - - - 69,667,000 70,509,000 77,478,000 13,507,000 13,016,000 12,533,000 4,071,000 5,076,000 5,306,000 - - - 17,578,000 18,092,000 17,839,000 Long Term Investments Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt 29,213,000 23,821,000 24,333,000 Other Liabilities 5,887,000 5,744,000 4,931,000 Deferred Long Term Liability Charges 4,959,000 5,304,000 5,986,000 107,000 110,000 110,000 - - - 57,744,000 53,071,000 53,199,000 -145,000 -140,000 -130,000 Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 24,000 25,000 25,000 50,472,000 49,092,000 46,420,000 Treasury Stock -29,185,000 -24,985,000 -21,004,000 Capital Surplus 4,076,000 4,115,000 4,095,000 Other Stockholder Equity -13,319,000 -10,669,000 -5,127,000 Total Stockholder Equity 12,068,000 17,578,000 24,409,000 -15,190,000 -11,475,000 -8,243,000 Minority Interest Negative Goodwill Total Liabilities Stockholders' Equity Misc. Stocks Options Warrants Retained Earnings Net Tangible Assets