298 ♦ Chapter 5
2. Refer to Safeway’s Financial Statements. Using the financial statements from Safeway, determine
the gross profit and operating income percentages for the years presented.
ANS:
3. Refer to Safeway’s Financial Statements. A merchandise company has some financial statement
items that differ from a service organization. From the Safeway financial statements, name two of
these items (they may be related) one from the income statement and one from the balance sheet.
On the income statement, is this item large or small relative to other expenses. On the balance
sheet, is the item large or small relative to the other items in its balance sheet classification?
Accounting for Merchandise Operations ♦ 299
PepsiCo’s Financial Statements
Answer the following question(s) using these selected portions of PepsiCo’s financial statements.
300 ♦ Chapter 5
Accounting for Merchandise Operations ♦ 301
302 ♦ Chapter 5
Accounting for Merchandise Operations ♦ 303
304 ♦ Chapter 5
Accounting for Merchandise Operations ♦ 305
306 ♦ Chapter 5
Accounting for Merchandise Operations ♦ 307
4. Refer to PepsiCo’s Financial Statements. Using the financial statements for PepsiCo, determine the
gross profit and operating income percentages for the years presented.
308 ♦ Chapter 5
5. Refer to PepsiCo’s Financial Statements. A merchandise company has some financial statement
items that differ from a service organization. From the PepsiCo financial statements, name two of
these items (they may be related) one from the income statement and one from the balance sheet.
On the income statement, is this item large or small relative to other expenses. On the balance
sheet, is the item large or small relative to the other items in its balance sheet classification?