The financial statements of PepsiCo, Inc. and the Notes to Consolidated Financial Statements appear in Appendix A.
Question:
The financial statements of PepsiCo, Inc. and the Notes to Consolidated Financial Statements appear in Appendix A.
Instructions
Refer to PepsiCo’s financial statements and answer the following questions about current and contingent liabilities and payroll costs.
(a) What were PepsiCo’s total current liabilities at December 29, 2007? What was the increase/decrease in PepsiCo’s total current liabilities from the prior year?
(b) In PepsiCo’s Note 2 (“Our Significant Accounting Policies”), the company explains the nature of its contingencies. Under what conditions does PepsiCo recognize (record and report) liabilities for contingencies?
(c) What were the components of total current liabilities on December 29, 2007?
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
a Total current liabilities at December 29 2007 7753 million PepsiCos total current liabilities i...View the full answer
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
