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Coca-Cola Company and for PepsiCo, Inc., are presented here (in millions). Coca-

ID: 2377242 • Letter: C

Question

Coca-Cola Company and for PepsiCo, Inc., are presented here (in millions).

                                                                                       Coca-Cola                        PepsiCo

Total current assets                                                      $ 12,094                        $ 8,639

Total current liabilities                                                     10,971                          6,752

Net sales                                                                             21,962                        29,261

Cost of goods sold                                                              7,638                        13,406

Net income                                                                           4,847                           4,212

Average (net) receivables for the year                             2,131                          2,915

Average inventories for the year                                      1,336                           1,477

Average total assets                                                          29,335                         26,657

Average common stockholders

Explanation / Answer

PepsiCo 0.75 times
Coca-Cola 0.64 times
Solvency - Cash debt coverage (Round answers to 2 decimal places, e.g. 0.55.)

Current cash debt coverage ratio = Cash provided by operations / Average current liabilities
PepsiCo
6,084 / 8,133 = 0.75
Coca-Cola
5,957 / 9,363 = 0.64

PepsiCo .38 times
Coca-Cola .46 times
Solvency - Free cash flow

PepsiCo $2,162
Coca-Cola $1,639

Cash debt coverage ratio = Net cash provided by operating/ Average total liabilities
PepsiCo
$6,084 / 16,019 = .38
$5,957 / 13,058 = .46
Fee cash flow = Cash provided by operations - Capital expenditures - Cash dividends
PepsiCo
$6,084 - 2,068 - 1,854 = $2,162
Coca-Cola
$5,957 - 1,407 - 2,911 = $1,639

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