BYP 13-1 FINANCIAL REPORTING PROBLEM
(a) Net cash provided by operating activities:
2010 $8,448 million
2009 $6,796 million
year ended December 25, 2010.
(c) PepsiCo uses the indirect method of computing and presenting the net
(d) The change in accounts and notes receivable used cash of $268 million in
cash of $488 million in 2010.
(e) The net cash used by investing activities in 2010 was $7,668 million.
(f) In note 14, under the “Other Supplemental Information” section cash
BYP 13-2 COMPARATIVE ANALYSIS PROBLEM
PepsiCo
Coca-Cola
(a)
$8,448 – $3,253 – $2,978 =
$2,217
$9,532 – $2,215 – $4,068 =
$3,249
All amounts in millions
ditures and cash dividends.
(a) DEL CARPIO COMPANY
Statement of Cash Flows
For the Year Ended January 31, 2014
Cash flows from operating activities
Net loss ………………………………………….. $ (44,000)*
Adjustments to reconcile net income
Cash flows from investing activities
Sale of investment …………………………... 85,000
Cash flows from financing activities
Sale of capital stock ………………………… 405,000
Purchase of treasury stock ……………… (15,000)
Net cash provided by financing
Noncash investing and financing activities
BYP 13-3 (Continued)
*Computation of net income (loss)
Sales of merchandise ………………………… $350,000
Interest revenue ………………………………… 6,000
Gain on sale of investment
schedule. Sara is wrong, however, about the actual increase in cash not
being $101,000; $101,000 is the correct increase in cash.
BYP 13-4 REAL-WORLD FOCUS
(a) Crucial to the SEC’s effectiveness is its enforcement authority. Each
them.
(b) The main purposes of these laws can be reduced to two common-sense
notions:
Companies publicly offering securities for investment dollars must
People who sell and trade securities—brokers, dealers, and exchan–
ges—must treat investors fairly and honestly, putting investors’
interests first.
(c) President Franklin Delano Roosevelt appointed Joseph P. Kennedy,
the SEC.
BYP 13-5 REAL-WORLD FOCUS
BYP 13-6 COMMUNICATION ACTIVITY
MEMO
To: Bart Sampson
From: Student
Re: Statement of cash flows
on account which remain uncollected at year-end.
The investing activities section of the statement reports cash flows resulting
from changes in investments and other long-term assets. The company
had a cash outflow from investing activities due to purchases of buildings
and equipment.
If you have any further questions, please do not hesitate to contact me.
BYP 13-7 ETHICS CASE
(a) The stakeholders in this situation are:
Milton Williams, president of Babbit Corporation.
do something unethical.
Controller Jerry Roberts’ reclassification (intentional misclassification) of
a cash inflow from a long-term note (financing activity) issuance to an
“increase in payables” (operating activity) is inappropriate and unethical.
is also possible that close scrutiny of the balance sheet showing an
increase in notes payable (long-term debt) would reveal that there is
no comparable financing activity item (proceeds from note payable) in
the statement of cash flows.
BYP 13-8 ALL ABOUT YOU
(a) The article describes three factors that determine how much money
you should set aside. (1) Your willingness to take risk. You need to evaluate
a wedding, or education costs.
(b) They recommend having at least three months of living expenses set
aside, and up to six months.
the event of a financial “hiccup.”