PepsiCo, Inc.'s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are available at each company's respective website.

Instructions
a. At December 28, 2019, what was PepsiCo's largest current liability account? What were its total current liabilities? At December 31, 2019, what was Coca-Cola's largest current liability account? What were its total current liabilities?

b. Based on information contained in those financial statements, compute the following 2019 values for each company:
1. Working capital.
2. Current ratio.
c. What conclusions concerning the relative liquidity of these companies can be drawn from these data?

Transcribed Image Text:

Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions except per share amounts) Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits (expense)/income Interest expense Interest income and other Income before income taxes Provision for/(benefit from) income taxes (See Note 5) Net income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted Weighted-average common shares outstanding Basic Diluted 2019 $67,161 30,132 37,029 26,738 10,291 (44) (1,135) 200 9,312 1,959 7,353 39 $7,314 $ 5.23 $ 5.20 1,399 1,407 2018 $ 64,661 29,381 35,280 25,170 10,110 298 (1,525) 306 9,189 (3,370) 12,559 44 $12,515 S $ 8.84 8.78 1,415 1,425 2017 $63,525 28,796 34,729 24,453 10,276 233 (1,151) 244 9,602 4,694 4,908 51 $4,857 $ 3.40 $ 3.38 1,425 1,438