Question: PepsiCos 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

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, compute the following 2013 ratios for each company.

(1) Debt to assets.

(2) Times interest earned.

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

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ANSWER a 1 PepsiCo Debt to Assets Total LiabilitiesTotal Assets 37932 million70657 million 054 CocaC... View full answer

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