Financial Reporting and Analysis

Name: Mesbah Uddin Ahmed

Id: 0510151

6/26/2011

Financial Reporting Problem BY4-1. (a) What were PepsiCos total Current as at December 31, 2005 and December 25, 2004? The list of PepsiCo total current asset at December 31, 2005 and December 25, 2004 were shown in following table: (in millions per share amounts) 2005 2004 Current Asset Cash and cash equivalents $1,716 1,280 Short- term investment 3166 2165 Account and note receivable, net 3,261 2,999 Inventories 1,693 1541 Prepaid expense and other current assets 618 654 Total Current Assets 10,454 8,639 (b) Are assets PepsiCo included under the current assets listed in proper order? Explain. Yes assets PepsiCo included under the current assets listed in proper order. Here we can see that that PepsiCo has list current asset accounts in the order they expect to convert them into cash. (c) How are PepsiCos assets classified? PepsiCo has classified the assets in four sections Current Assets Long term Investment Property, plant, and equipment Intangible Assets

(d) What are cash equivalents? Investment securities that are short-term have high credit quality and are highly liquid. (e) What were PepsiCos total current liabilities at December 31 2005 and December 25, 2004? The list of PepsiCo total current liabilities at December 31, 2005 and December 25, shown in following table: Current Liabilities 2005 Short-term obligations $ 2,889 Account payable and other current liabilities 5,971 Income taxes payable 546 9,406 Total Current liabilities 2004 were 2004 $ 1,054 5,599 99 6,752

Comparative Analysis Problem PepsiCo, Inc. vs. The Coca- Cola Company BYP4-2 (a) Based on the information in these financial statements, determine each of the following for PepsiCo at December 31, 2005, and Coca- Cola at December 31, 2005? (1) Total current assets PepsiCo, Inc. has higher Total Current asset as compare to Coca- Cola Company. However, PepsiCo, Inc. has cash or cash equivalent $ 4,701, where Coca- Cola Company has only $1716, here PepsiCo, Inc. better in current asset than Coca-Cola. (2) Net amount of property, plant and equipment (land, building and equipment ) PepsiCo, Inc. has net amount of property, plant and equipment $8,681 and has Coca-Cola Company $ 5, 786. PepsiCo has more Fixed asset as compare to Coca-Cola Company. (3) Total current liabilities. Coco-Cola Company has more total current liabilities than PepsiCo, Inc. it mean that Coca-Cola Company has more creditor than Pepsi. Coca-Cola is liable pay money to other businesses like its suppliers. (4) Total Stockholders (shareholders) equity. PepsiCo, Inc. Total shareholders Equity in 2005 has $ 16, 355 and Coco-Cola $14, 320. Here we can see that Coca-Cola Pay more money to its shareholders as most companies capital has its shareholder

(b) What conclusion concerning the companies respective financial positions can be drawn? PepsiCo, Inc. Companys financial position is better as compare to Coca-Cola Company. Above Comparison we show that. More appropriate result can be done through Ratio analysis.

Exploring the Web BYP-3 (a) What type of information is aviable? Captn Eli Root Beer Company and Kodak both company Homepage provide that information about their product. In Captn Eli Root Beer Company home page provided the information about different flavor soda they are producing right now and list distributor name list and their contracts. Its home page also includes a brief history about the formation the company. On the other hand in Kodak home page provide information different products that are available in the market and other promotional activities that company is providing now to it customer. (b) Is any accounting related information presented? None of the companies has presented any accounting related information in their home page. (c) Would you describe the home page as informative, promotional or both? Why? Yes both the companies homepages are as informative and promotional. The reason that, here both companies provided enough information about their product and its specification. Both companies also continue updating different promotional activity for its potential clients.