An annual report for PepsiCo contained thefollowing information (in millions of U. S.dollars):Net earnings..Depreciation and amortization .2,689The decrease in trade receivables. .250The decrease in inventories.The decrease in prepayments.Increase in trade payables..The decrease in taxes payable .9,7Cash dividends paid..Repurchase of shares..Required:1. Compute the cash flows from operatingactivities for PepsiCo by using the indirectmethod..$6,214.144.89.548.3,305.3,2262. Compute the quality of earnings ratio.3. What were the major reasons that Pepsi'squality of earnings ratio did not equal 1.0?

Name: An annual report for PepsiCo contained thefollowing information (in m
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Description: An annual report for PepsiCo contained thefollowing information (in millions of U. S.dollars):Net earnings..Depreciation and amortization .2,689The decrease in trade receivables. .250The decrease in inventories.The decrease in prepayments.Increase i

Cash flows from operating activities is the part of the cash flow of the company which explains the…

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Accounting

An annual report for PepsiCo contained the following information (in millions of U. S. dollars): Net earnings.. Depreciation and amortization. .2,689 The decrease in trade receivables. .250 The decrease in inventories. .144 The decrease in prepayments ..89 Increase in trade payables. .548 .$6,214 Th

An annual report for PepsiCo contained the following information (in millions of U. S. dollars): Net earnings.. Depreciation and amortization. .2,689 The decrease in trade receivables. .250 The decrease in inventories. .144 The decrease in prepayments ..89 Increase in trade payables. .548 .$6,214 Th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

An annual report for PepsiCo contained the
following information (in millions of U. S.
dollars):
Net earnings..
Depreciation and amortization .2,689
The decrease in trade receivables. .250
The decrease in inventories.
The decrease in prepayments.
Increase in trade payables..
The decrease in taxes payable .9,7
Cash dividends paid..
Repurchase of shares..
Required:
1. Compute the cash flows from operating
activities for PepsiCo by using the indirect
method.
.$6,214
.144
.89
.548
.3,305
.3,226
2. Compute the quality of earnings ratio.
3. What were the major reasons that Pepsi's
quality of earnings ratio did not equal 1.0?

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