What method does pepsico use

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Reference no: EM131623831

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) What method of computing net cash provided by operating activities does Coca-Cola use? What method does PepsiCo use? What were the amounts of cash provided by operating activities reported by Coca-Cola and PepsiCo in 2011?

(b) What was the most significant item reported by Coca-Cola and PepsiCo in 2011 in their investing activities sections? What is the most significant item reported by Coca-Cola and PepsiCo in 2011 in their financing activities sections?

(c) What were these two companies' trends in net cash provided by operating activities over the period 2009 to 2011?

(d) Where is "depreciation and amortization" reported by Coca-Cola and PepsiCo in their statements of cash flows? What is the amount and why does it appear in that section of the statement of cash flows?

(e) Based on the information contained in Coca-Cola's and PepsiCo's financial statements, compute the following 2011 ratios for each company. These ratios require the use of statement of cash flows data. (These ratios were covered in Chapter 5.)

(1) Current cash debt coverage.

(2) Cash debt coverage.

(f) What conclusions concerning the management of cash can be drawn from the ratios computed in (e)?

Reference no: EM131623831

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