PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito- Lay,

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PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito- Lay, Gatorade, Pepsi-Cola, and Tropicana. On recent financial statements, Pepsi reported net income of $7,314 million and $2,257 million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $9,649 million. Why would Pepsi’s net income be higher if it had used the cash basis?

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Financial And Managerial Accounting

ISBN: 9780357714041

16th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

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