PepsiCos financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in

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PepsiCo’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.

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

(1) The percentage increase (decrease) in (j) net sales and (ii) net income from 2010 to 2011.
(2) The percentage increase in (j) total assets and (ii) total common stockholders’ (shareholders’) equity from 2010 to 2011.
(3) The basic earnings per share and price-earnings ratio for 2011. (For both PepsiCo and Coca Cola, use the basic earnings per share.) Coca-Cola’s common stock had a market price of $75.05 at the end of fiscal-year 2011, and PepsiCo's common stock had a market price of $66.35.

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

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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