x Your answer is incorrect. Try again. PepsiCo, Inc. is a world leader in conven
ID: 2429214 • Letter: X
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x Your answer is incorrect. Try again. PepsiCo, Inc. is a world leader in convenient snacks, foods, and beverages. The following are PepsiCo's financial statements as presented in its 2013 annual report. To access PepsiCo's complete annual report, including notes to the financial statements, follow these steps 1. Go to http://www.pepsico.com 2. Select Annual Reports and Proxy Information under the Investors tab. 3. Select the 2013 Annual Report. 4. The Notes to Consolidated Financial Statements begin on page 73. The Coca-Cola Company is a global leader in the beverage industry. It offers hundreds of brands, including soft drinks, fruit juices, sports drinks and other beverages in more than 200 countries. The following are Coca-Cola's financial statements as presented in its 2013 annual report. To access Coca-Cola's complete annual report, including notes to the financial statements, follow these steps: 1. Go to http:/ 2. Select the Investors link near the bottom of the page, and then select Financial Reports & Information. 3. Select the 2013 Annual Report on Form 10-K 4. The Notes to Consolidated Financial Statements begin on page 79. 1 Go to http://www.coca-colacompany.com Based on the information contained in these financial statements, compute free cash flow for each company. (Enter answers in millions.) PepsiCo Coca-Cola 6328Explanation / Answer
Free Cash Flow (FCF) = Net Cash Provided by Operating Activities - Net Capital Expenditure
Pepsico
(In Millions)
Coco-cola
(In Millions)
The presence of free cash flow indicates that a company has cash to EXPAND, develop new products, buy back stock, pay dividends, or reduce its debt.
Pepsico
(In Millions)
Coco-cola
(In Millions)
A. Net operating cash Flow $9,688 $10,542 Capital expenditure: Purchase of PPE $2,795 $2,550 Proceeds from disposal of PPE ($109) ($111) B. Net capital expenditure $2,686 $2,439 Free Cash Flow (A - B) $7002 $8,103Related Questions
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