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

Instructions
  (a) At December 25, 2010, what was PepsiCo’s largest current liability account? What were its total current liabilities? At December 31, 2010, 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 2010 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?
  (d) Based on the information contained in these financial statements, compute the following 2010 ratios for each company.

(1) Debt to total assets.
(2) Times interest earned.

  (e) What conclusions concerning the companies’ long-run solvency can be drawn from these ratios?