PepsiCos financial statements are presented at www.pepsico.com. Financial statements of The Coca-Cola Company are presented at www.coca-cola.com. Instructions (a) Based on the information contained in these financial statements, compute free cash flow for each company. (b) What conclusions concerning the management of cash can be drawn from these data?

Chapter 13, Decision-Making #2
PepsiCo’s financial statements are presented at www.pepsico.com. Financial statements of The Coca-Cola Company are presented at www.coca-cola.com.
Instructions
(a) Based on the information contained in these financial statements, compute free cash flow for each company.
(b) What conclusions concerning the management of cash can be drawn from these data?

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...
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...

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