The financial statements of The Coca-Cola Company and PepsiCo, Inc. can be accessed at the book’s website.
Instructions
Use information found at the book’s website to answer the following questions.
(a) Identify the changes in accounting principles reported by Coca-Cola and Pepsico during the 3 years covered by its income statements (2004–2006). Describe the nature of the change and the year of change.
(b) What are the weighted-average number of shares used by Coca-Cola and PepsiCo in 2006, 2005, and 2004 to compute diluted earnings per share?
(c) What was the diluted net income per share for Coca-Cola and PepsiCo for 2006, 2005, and 2004?