A recent annual report for PepsiCo contained the following information for the period (dollars in millions): Net income .......... $5,642
A recent annual report for PepsiCo contained the following information for the period (dollars in millions):
Net income .......... $5,642
Depreciation and amortization .. 1,406
Increase in accounts receivable .... 330
Increase in inventory ........ 186
Increase in prepaid expense ...... 37
Increase in accounts payable ..... 223
Decrease in taxes payable ..... 295
Decrease in other current liabilities . 339
Cash dividends paid ...... 1,854
Treasury stock purchased .... 3,000
1. Compute cash flows from operating activities for PepsiCo using the indirect method.
2. Compute the quality of income ratio.
3. What were the major reasons that Pepsi’s quality of income ratio did not equal 1.0?
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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