Question

In: Finance

1. PepsiCo, near the top of Table 2-5 in the chapter, is a company that provides...

1. PepsiCo, near the top of Table 2-5 in the chapter, is a company that provides
comprehensive financial statements. Go to finance.yahoo.com. In the box next to
“Get Quotes,” type in its ticker symbol PEP and click.
2. Scroll all the way down to “Financials” and click on “Income Statement.” Compute
the annual percentage change between the three years for the following:
a. Total revenue.
b. Net income applicable to common shares.
3. Now click on “Balance Sheet” and compute the annual percentage change
between the three years for the following:
a. Total assets.
b. Total liabilities.
4. Write a one-paragraph summary of how the company is doing.

Solutions

Expert Solution

Pepsi Co

FY2014

FY2015

FY2016

Total Revenue ( In $ Bn)

66.68

63.06

62.80

Annual Percentage Change

-5.4%

-0.4%

Compounded Annual Growth Percentage

-3.0%

Net Applicable Income to Common Share ( In $ Bn)

6.51

5.45

6.33

Annual Percentage Change

-16.3%

16.1%

Compounded Annual Growth Percentage

-1.4%

Total Assets (In $ Bn)

70.51

69.67

74.13

Annual Percentage Change

-1.2%

6.4%

Compounded Annual Growth Percentage

2.5%

Total Liabilities (In $ Bn)

53.07

57.74

63.03

Annual Percentage Change

8.8%

9.2%

Compounded Annual Growth Percentage

9.0%

Pepsico has been declining in terms of revenu over the last 3 years. This might mean that its losing its sales to its competitors, which can most possibly be Coca- Cola or maybe an emergence of an alternative to sweet soda.

But at the same time it seems that the profit margins have risen in FY2016 which means that possibly while revenues are declining, the company is looking at greater cost control and hence is able to make more money even out of declining revenues.

At the same time, liabilities are increasing, which possibly means that company is taking on more debt on its books. While assets are increasing, it is primarily driven by increase in current assets, which can mean that greater amount of money is getting locked in working capital. Overall the company seems to be in a declining phase, but is looking at improving its margins by greater cost control and financial management

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

1. PepsiCo, near the top of Table 2-5 in the chapter, is a company that provides...
1. PepsiCo, near the top of Table 2-5 in the chapter, is a company that provides comprehensive financial statements. Go to finance.yahoo.com. In the box next to “Get Quotes,” type in its ticker symbol PEP and click. 2. Scroll all the way down to “Financials” and click on “Income Statement.” Compute the annual percentage change between the three years for the following: (INCOME STATEMENT IS BELOW FOR 3 YEARS IS BELOW) a. Total revenue.(PLEASE SHOW ALL WORK AS TO HOW...
EXERCISE 2 The following table contains information about top 5 causes of death in the United...
EXERCISE 2 The following table contains information about top 5 causes of death in the United States in 2014, both overall (all age categories) and 15-24 years old group. Based on information in Table 1., construct two pie graphs (one for overall, one for 15-24 age group), showing percentages for each cause of death. Given current technology, pie charts are almost always generated by computer rather than drawn by hand. For the purpose of this assignment you can use either...
1) Near the top of the page the word "safety" was used. How is that meant...
1) Near the top of the page the word "safety" was used. How is that meant to be interpreted? firm—cash, marketable securities, accounts receivable, and inventory. In managing cash and marketable securities, the primary concern should be for safety and liquidity—with secondary attention placed on maximizing profitability. As we move to accounts receivable and inventory, a stiffer profitability test must be met. The investment level should not be a result of happenstance or historical determination but must meet the same...
1. Describetherelationshipbetweentwovariableswhenthe correlation coefficient r is a) near –1 b) near 0 c) near +1 2....
1. Describetherelationshipbetweentwovariableswhenthe correlation coefficient r is a) near –1 b) near 0 c) near +1 2. What is the meaning of the “least-squares” criterion? 3. “Correlation does not imply causation.” Explain.
A. The Table 1 below provides data for the Big Cat Rescue Company. The price of...
A. The Table 1 below provides data for the Big Cat Rescue Company. The price of entrance is $60 and Q refers to the number of visitors who can visit the Big Cat Reserve. Calculate TR= Total Revenue, π=profit, MC= Marginal Cost and MR=Marginal revenue and fill in the blanks of the table. B. Also, calculate TR, MR and π=profit when the entrance price falls to $50. Table 1 Q Price TR when Price=60 TC Profit π MC MR when...
Table 2-1 in the text provides a list of key U.S. laws of interest to information...
Table 2-1 in the text provides a list of key U.S. laws of interest to information security professionals. Rather than have you comment on all 33 of them (you're welcome), let's pick one to discuss: Sarbanes-Oxley. Isn't this law about making sure companies have accurate financial statements? Why would compliance with this law be a concern for information security professionals?
A book weighing 5 N rests on top of a table. Part A A downward force...
A book weighing 5 N rests on top of a table. Part A A downward force of magnitude 5 N is exerted on the book by the force of the table gravity inertia Part B An upward force of magnitude _____ is exerted on the _____ by the table. 6N/table 5N/table 5N/book 6N/book Part C Do the downward force in Part A and the upward force in Part B constitute a 3rd law pair? yes no Part D The reaction...
CASE 3               ZZ TOP TECHNOLOGY INC CHAPTER 9 ZZ Top is a small technology company in Dublin,...
CASE 3               ZZ TOP TECHNOLOGY INC CHAPTER 9 ZZ Top is a small technology company in Dublin, Ireland. The company started 70 years ago developing communication equipment for military organizations around the globe. The company, in a desire to diversify, has developed a reputation in specialty communication equipment to consumers. ZZ has developed a new smart phone that can do all things an Apple iphone can do, but has added an impressive array of medical tests, such as EKG and heart...
The worksheet title “Table 1” in the Excel file “Dayton Software Inc Table 1” provides an...
The worksheet title “Table 1” in the Excel file “Dayton Software Inc Table 1” provides an overview of the market research data K2 generated. The table shows the four market segments, the anticipated size of each segment, and each segment’s willingness to pay for the two different versions of Integrated. It also includes projected costs of production and marketing. You can see the estimated production completion cost for each version, the variable cost per unit sold for each version and...
Wrap up question 1: You hold a “Top” piece of charged tape near an uncharged soda...
Wrap up question 1: You hold a “Top” piece of charged tape near an uncharged soda can. Describe the behavior of the tape. Would the behavior be different if you used a “Bottom” piece of tape instead? Explain. Wrap up question 2: Suppose there exists a third type of charge in addition to the two types we associate with glass and plastic. Call this third type X charge. What experiment(s) could you use to test whether an object has X...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT