The Coca-Cola Company and PepsiCo, Inc. Instructions Go to the books companion website and use information found
Question:
The Coca-Cola Company and PepsiCo, Inc.
Instructions
Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc.
(a) How much working capital do each of these companies have at the end of 2009?
(b) Compute both company’s (a) current cash debt coverage ratio, (b) cash debt coverage ratio,
(c) Current ratio, (d) acid-test ratio, (e) receivable turnover ratio and (f) inventory turnover ratio for 2009. Comment on each company’s overall liquidity.
(c) In PepsiCo’s financial statements, it reports in the long-term debt section “short-term borrowings, reclassified.” How can short-term borrowings be classified as long-term debt?
(d) What types of loss or gain contingencies do these two companies have at the end of 2009?
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...
Step by Step Answer:
a The working capital position of the two companies is as follows PepsiCo Inc Current assets 12571000000 Current liabilities 8756000000 Working capital 3815000000 The CocaCola Company Current assets 1...View the full answer
