Week 3 appendix e (online text)

Week 3 Appendix E (Online text)
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Unformatted text preview: THE ANNUAL REPORT SPECIMEN FINANCIAL STATEMENTS: PepsiCo, Inc. Appendix A The financial information herein is reprinted with permission from the PepsiCo, Inc. 2005 Annual Report. The complete financial statements are available through a link at the books companion website. Once each year a corporation communicates to its stockholders and other interested parties by issuing a complete set of audited financial statements.The annual report ,as this communication is called, summarizes the financial results of the companys oper- ations for the year and its plans for the future.Many annual reports are attractive,mul- ticolored, glossy public relations pieces, containing pictures of corporate officers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report financial information, almost all of which is a product of the corporations accounting system. The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, products, etc.), the following are the traditional financial portions of the annual report: FINANCIAL HIGHLIGHTS Companies usually present the financial highlights section inside the front cover of the annual report or on its first two pages. This section generally reports the total or per share amounts for five to ten financial items for the current year and one or more previous years. Financial items from the income statement and the balance sheet that typically are presented are sales, income from continuing operations, net income, net income per share, net cash provided by operating activities, dividends per common share, and the amount of capital expenditures.The financial highlights section from PepsiCos Annual Report is shown on page A-2....
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