Project - AC551IntermediateAccounting2...

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AC551 Intermediate Accounting 2 Instructur: Wendy Williams Student: Maira Bissembayeva Project-Comparative Analysis Case (page 685) (a) The working capital position of the two companies is as follows: PepsiCo, Inc. Current assets Current liabilities  Working capital The Coca-Cola Company Current assets Current liabilities Working capital (b) PepsiCo Coca-Cola 0.95 0.65 Cash debt coverage ratio 0.43 0.41 Current ratio 1.31 0.92 Acid-test 0.89 0.58 Receivables turnover 9.73 9.78 Inventory turnover 8.56 5.39 © A company can exclude a short-term obligation from current liabilities only if: 1. It must intend to refinance the obligation on a long-term basis, and 2. It must demonstrate an ability to consummate the refinancing. At year-end 2007, $1,376 million of short-term borrowings were classified as long-term debt, reflecting PepsiCo’s intent and ability, through the existence of the unused credit facilities, to refinance these borrowings. These credit facilities exist largely to support the issuance of
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This note was uploaded on 01/28/2010 for the course KELLER AC551 taught by Professor Williams during the Fall '10 term at DeVry Arlington.

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Project - AC551IntermediateAccounting2...

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