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Compute annual percentage change between the three years for the following: a. t

ID: 2671505 • Letter: C

Question

Compute annual percentage change between the three years for the following:

 

a. total revenue

 

b. Net income applicable to Common Shares

 

 

 

Income statement:  For Pepsi company (All numbers in thousands)

Period Ending                                    Dec 25, 2010   Dec 26, 2009     Dec 27, 2008
Total Revenue                                    57,838,000    43,232,000       43,251,000
Cost of Revenue                                  26,575,000       20,099,000        20,351,000

Gross Profit                                        31,263,000     23,133,000     22,900,000

 

Operating Expenses
Research Development - - -
Selling General and Administrative           22,814,000    15,026,000        15,901,000
Non Recurring - - -
Others                                                     117,000        63,000               64,000

Total Operating Expenses                     -                         -                      -


Operating Income or Loss                        8,332,000   8,044,000         6,935,000

Income from Continuing Operations
Total Other Income/Expenses Net               68,000         67,000               41,000
Earnings Before Interest And Taxes             9,135,000    8,476,000           7,350,000
Interest Expense                                        903,000        397,000             329,000
Income Before Tax                                     8,232,000      8,079,000         7,021,000
Income Tax Expense                                  1,894,000       2,100,000         1,879,000
Minority Interest                                       (18,000)          (33,000)                -

Net Income From Continuing Ops               7,055,000        6,311,000           5,142,000

Non-recurring Events
Discontinued Operations                           -                          -                          -
Extraordinary Items                                  -                           -                          -
Effect Of Accounting Changes                    -                           -                          -
Other Items                                             -                            -                          -


Net Income                                                 6,320,000     5,946,000       5,142,000
Preferred Stock And Other Adjustments             -                    -                        -

Net Income Applicable To Common Shares   6,320,000     5,946,000       5,142,000


Currency in USD.

Explanation / Answer

First lets calculate for year 2008 - 2009 a)Total Revenue - (43, 232,000 - 43,251,000) / 43,251, 000 *100 = (0.043 %) Negative value b)Net income applicable to Common Shares = (5,946,000 - 5,142,000)/5,142,000 *100 = 15.635 % Now for 2009 - 2010 a) Total Revenue (57,838,000 - 43,232, 000 )/ 43,232,000 * 100 = 33.78 % b) Net income applicable to Common Shares (6,320,000 - 5,946,000) /5,946,000 *100 = 6.28 %

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