104 ♦ Chapter 2
CASE
PepsiCo’s Financial Statements
Answer the following question(s) using these selected portions of PepsiCo’s financial statements.
Basic Accounting Concepts ♦ 105
106 ♦ Chapter 2
Basic Accounting Concepts ♦ 107
108 ♦ Chapter 2
Basic Accounting Concepts ♦ 109
110 ♦ Chapter 2
Basic Accounting Concepts ♦ 111
112 ♦ Chapter 2
1. Refer to PepsiCo’s Financial Statements. Prepare a comparative vertical analysis for the balance
sheets for 2001 and 2000 for the asset accounts. Make sure that your total = 100%.
Basic Accounting Concepts ♦ 113
2. Refer to PepsiCo’s Financial Statements. Prepare vertical analysis for PepsiCo for 2001 for the
following:
Net sales
Cost of sales
Gross Profit (you may have to compute this number)
Operating Profit
Net Income
3. Refer to PepsiCo’s Financial Statements and answer the following questions:
(a)
Did PepsiCo issue any stock in 2001? If so, how much and where might this information be found?
(b)
Did PepsiCo repurchase any stock in 2001? If so, how much and where might this information be
found?
(b)
No. The information is in the Stockholders’ Equity section of the Balance sheet.
4. Refer to PepsiCo’s Financial Statements. PepsiCo’s cash balance decreased from 2000 to 2001.
Just looking at the balance sheet, do you think this a good or bad thing? What other short-term
asset accounts might you consider in answering this question?
Net sales
Operating Profit