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... The decrease in inventories. . The decrease in prepayments. Increase in trade payables. .548 The decrease in taxes payable. .97 Cash dividends paid. .3,305 Repurchase of shares. Required: 1. Compute the cash flows from operating activities for PepsiCo by using the indirect method. 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? Do not copy from chegg. .$6,214 .250 .144 ..89 ..3,226
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... The decrease in inventories. . The decrease in prepayments. Increase in trade payables. .548 The decrease in taxes payable. .97 Cash dividends paid. .3,305 Repurchase of shares. Required: 1. Compute the cash flows from operating activities for PepsiCo by using the indirect method. 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? Do not copy from chegg. .$6,214 .250 .144 ..89 ..3,226
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
$6,214
..144
The decrease in prepayments. .89
Increase in trade payables. .548
The decrease in taxes payable..
Cash dividends paid. .,305
Repurchase of shares..
Required:
1. Compute the cash flows from operating
activities for PepsiCo by using the indirect
method.
.97
.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?
Do not copy from chegg.
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