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# Financial Reporting Problem: PepsiCo, Inc. BYP18-1 Your

Financial Reporting Problem: PepsiCo, Inc.
BYP18-1
Your parents are considering investing in PepsiCo common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Fortunately, excerpts from a current annual report of PepsiCo are presented in Appendix A of this textbook. Note that all dollar amounts are in millions.
Instructions
(Follow the approach in the chapter for rounding numbers.)
(a) Make a 5-year trend analysis, using 2005 as the base year, of (1) net sales and (2) net income. Comment on the significance of the trend results.
(b) Compute for 2009 and 2008 the (1) profit margin, (2) asset turnover, (3) return on assets, and (4) return on common stockholders' equity. How would you evaluate PepsiCo's profitability? Total assets at December 31, 2007, were \$34,628 and total stockholders' equity at December 31, 2007, was \$17,325.
(c) Compute for 2009 and 2008 the (1) debt to total assets and (2) times interest earned ratio. How would you evaluate PepsiCo's long-term solvency?
(d) What information outside the annual report may also be useful to your parents in making a decision about PepsiCo, Inc.?

Hello

Thank you

Customer: replied 4 years ago.

My deadline is Tuesday midnight. The book I am using is called: Weygandt, Accounting Principles, 10th edition

Thank you

I am working on the question, will post the solution as soon as I can. I just need to finish a pending assignment and will start on this immediately after I am done

Customer: replied 4 years ago.

ok thank you. I am highly stressed and need this as soon as possible...to allow time to review. Thank you!

Kerrie

Hi Kerri

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