PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito- Lay,
Question:
PepsiCo, Inc. (PEP) is a food and beverage company with a variety of brands, including Frito- Lay, Gatorade, Pepsi-Cola, and Tropicana. On recent financial statements, Pepsi reported net income of $7,314 million and $2,257 million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $9,649 million. Why would Pepsi’s net income be higher if it had used the cash basis?
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Because depreciation expense does not involve a cash payment it is not ded...View the full answer
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Related Book For 
Financial And Managerial Accounting
ISBN: 9780357714041
16th Edition
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler
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