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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