PepsiCo’s financial statements are presented in Appendix A. The Coca-Cola Company’s financial statements are presented in Appendix B.

Instructions

(a) Based on the information contained in these financial statements, determine the following for each company.

(1) Total assets at December 31, 2005, for PepsiCo, and for Coca-Cola at December 31,2005.
(2) Accounts (notes) receivable, net at December 31,2005, for PepsiCo and at December 31, 2005, for Coca-Cola.
(3) Net sales for year ended in 2005.
(4) Net income for year ended in 2005.

(b) What conclusions concerning the two companies can be drawn from these data?

Data from Appendix A

Data from Appendix B

Transcribed Image Text:

Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 31, 2005, December 25, 2004 and December 27, 2003 PEPSICO 2003 Het Revenue......... Cost of sales. Selling, general and administrative expenses. $32,562 $29,261 $26,971 14,176 12,674 11,691 12.314 11,031 10,148 Amortization of intangible assets. 150 147 145 Restructuring and impairment charges.. 150 147 Merger-related costs... 59 Operating Profit. 5.922 5,259 4,781 Bottling equity income.. 557 380 323 Interest expense... (256) (167) (163) Interest income... 159 74 51 Income from Continuing Operations before Income Taxes. 6.382 5,546 4,992 Provision for Income Taxes......... 2,304 1,372 1,424 Income from Continuing Operations... 4,078 4,174 3,568 Tax Benefit from Discontinued Operations. 38 Net Income. Net Income per Common Share Continuing operations.. Discontinued operations.. Total $4,078 $ 4,212 $ 3,568 Basic $2.43 $2.45 $2.07 0.02 $2.43 $2.47 $2.07