Acct151 Chapter 2 HW pt. 2

Acct151 Chapter 2 HW pt. 2 - Taylor Foxworth Accounting 151...

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Taylor Foxworth Accounting 151 Chapter 2 – P10, E7, P8, D1, D5 P10.) 1.) Coca-Cola Current assets: Cash + Inventories + Marketable securities + Prepaid expenses and other assets + Trade accounts receivable (less 63) = 8378. Current liabilities: Accounts payable and accrued expenses + Accrued income taxes + Current maturities of Long term debts + Loans and notes payable = 8890. Working capital = Current assets – Current liabilities = -$512. Current ratio = Current assets/Current liabilities = .9424 to 1. PepsiCo Current assets: Accounts and notes receivable, bet + Cash and cash equivalents + Inventories + Prepaid expenses and other current assets + Short-term investments = 9130. Current liabilities: Accounts payable and other current liabilities + Income taxes payable + Short-term obligations = 6860. Working capital = Current assets – Current liabilities = $2270. Current ratio = Current assets/Current liabilities = 1.33 to 1. 2.) Based on the answers I received to part 1.) I feel that PepsiCo is the more liquid company because they have a higher current ratio as well as a higher amount of working capital. 3.) Coca-Cola has more cash and cash equivalents than does PepsiCo which can help them pay
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This note was uploaded on 02/12/2009 for the course ACCT 151 taught by Professor Largay during the Spring '07 term at Lehigh University .

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Acct151 Chapter 2 HW pt. 2 - Taylor Foxworth Accounting 151...

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