The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online.

Use the companies' financial information to answer the following questions.

a) What are the amounts of Coca-Cola’s and PepsiCo’s provision for income taxes for the year 2011? Of each company’s 2011 provision for income taxes, what portion is current expense and what portion is deferred expense?

b) What amount of cash was paid in 2011 for income taxes by Coca-Cola and by PepsiCo?

c) What was the U.S. federal statutory tax rate in 2011? What was the effective tax rate in 2011 for Coca-Cola and PepsiCo? Why might their effective tax rates differ?

d) For year-end 2011, what amounts were reported by Coca-Cola and PepsiCo as

(1) gross deferred tax assets

(2) gross deferred tax liabilities

(e) Do either Coca-Cola or PepsiCo disclose any net operating loss carrybacks and/or carryforwards at year-end 2011? What are the amounts, and when do the carryforwards expire?

Answer rating: 100% (QA)

A The amount that is reported in BS as property plant and equipmentnet of cocacola on december 31 20... View the full answer