w5 learning team assignment.docx

w5 learning team assignment.docx - Coca-Cola and PepsiCo...

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Coca-Cola and PepsiCo, Week 5 Andrea Stickels, Christa Quiroz, Nicholas Hall, Sheena Rose August 14, 2017 ACC/421 Sammy Hinton
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The Coca-Cola/PepsiCo Comparative Analysis Case on p. 1394. A-F The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies' financial information to answer the following questions. 1. What method of computing net cash provided by operating activities does Coca-Cola use? What method does PepsiCo use? What were the amounts of cash provided by operating activities reported by Coca-Cola and PepsiCo in 2014? a. It is found that The Coca-Cola Company uses the fair value method of computing net cash provided by operating activities. According to THE COCA-COLA COMPANY AND SUBSIDIARIES (2017), "Net cash provided by operating activities for the years ended December 31, 2016, 2015 and 2014 was $8,796 million, $10,528 million and $10,615 million, respectively.” (Cash Flows from Operating Activities). According to Pepsi Co. (2017), "During 2016, net cash provided by operating activities was $10.4 billion, compared to $10.6 billion in the prior year” (Free Cash Flows). The Pepsi Co. annual statement for 2016 states that they use the free cash flow financial measure. 2. What was the most significant item reported by Coca-Cola and PepsiCo in 2014 in their investing activities sections? What is the most significant item reported by Coca-Cola and PepsiCo in 2014 in their financing activities sections? a. According to THE COCA-COLA COMPANY AND SUBSIDIARIES (2017), "In 2014, the Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $389 million, which primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador.” ( Acquisitions of Businesses, Equity Method Investments and Nonmarketable Securities ). According to Pepsi Co. (2017), "During 2014, net cash used for investing activities was $4.9 billion, primarily reflecting net capital spending of $2.7 billion and net purchases of marketable debt securities of $2.4
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