accounting AB116 - Unit 4 Discussion

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Current Liabilities — Comparative Analysis Problem: PepsiCo, Inc. versus The Coca-Cola Company This week’s Discussion topic comes from BYP11-2, p. 561 of your textbook. PepsiCo, Inc. and Coca-Cola Company financial statements are in Appendix C. Use their financials to answer the following questions:

(a) At December 31, 2011, what was PepsiCo’s largest current liability account? What were its total current liabilities? At December 31, 2011, what was Coca Cola’s largest current liability account? What were its total current liabilities?

(b) Based on information contained in those financial statements, compute the following 2011 values for each company:

(1) Working Capital

(2) Current Ratio

(c) What conclusions concerning the relative liquidity of these companies can be drawn from these data?

BYP11-2, p. 561 of your textbook. PepsiCo, Inc. and Coca-Cola Company financial statements are in Appendix C

Appendix B

Appendix C

Current Liabilities

Comparative Analysis Problem: PepsiCo, Inc. versus The Coca

-

Cola

Company This week’s Discussion topic comes from BYP11

-

2, p. 561 of your textbook. PepsiCo,

Inc. and Coca

-

Cola Company financial statements are in Appendix C. Use their

financials to

answer the following questions:

(a) At December 31, 2011, what was PepsiCo’s largest current liability account? What were its

total current liabilities? At December 31, 2011, what was Coca Cola’s largest current liability

account? What were i

ts total current liabilities?

(b) Based on information contained in those financial statements, compute the following 2011

values for each company:

(1) Working Capital

(2) Current Ratio

(c) What conclusions concerning the relative liquidity of these compan

ies can be drawn from

these data?

BYP11

-

2, p. 561 of your textbook. PepsiCo, Inc. and Coca

-

Cola Company financial

statements are in Appendix C

Current Liabilities — Comparative Analysis Problem: PepsiCo, Inc. versus The Coca-Cola

Company This week’s Discussion topic comes from BYP11-2, p. 561 of your textbook. PepsiCo,

Inc. and Coca-Cola Company financial statements are in Appendix C. Use their financials to

answer the following questions:

(a) At December 31, 2011, what was PepsiCo’s largest current liability account? What were its

total current liabilities? At December 31, 2011, what was Coca Cola’s largest current liability

account? What were its total current liabilities?

(b) Based on information contained in those financial statements, compute the following 2011

values for each company:

(1) Working Capital

(2) Current Ratio

(c) What conclusions concerning the relative liquidity of these companies can be drawn from

these data?

BYP11-2, p. 561 of your textbook. PepsiCo, Inc. and Coca-Cola Company financial

statements are in Appendix C