Question: MILESTONE 4: Analyzing Cash Flows from Operating Activities; Interpreting the Quality of Income Ratic A recent annual report for PepsiCo contained the following information for

MILESTONE 4: Analyzing Cash Flows from Operating Activities; Interpreting the Quality of Income Ratic A recent annual report for PepsiCo contained the following information for the period (dollars in millions): Net income Depreciation and amortization Increase in accounts receivable Increase in inventory Increase in prepaid expense Increase in accounts payable Decrease in taxes payable Increase in other current liabilities $6,462 2,737 331 27 520 340 589 3,157 2,489 Cash dividends paid Treasury stock purchased DELIVERABLES: 1. Compute cash flows from operating activities for PepsiCo using the indirect method. 2. Compute the quality of income ratio 3. What were the major reasons that PepsiCo's quality of income ratio did not equal 1.0
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