below iS selected finar Selected Balance Sheet Data December 31, 2016, 2015 Соса-Cola (S in millions) Total Assets Pepsico 2016 $ 74,129 2016 2015 2015 $ 87,270 $ 89,996 $ 69,667 Total Liabilities 64,050 64,232 62,930 57,637 Stockholders' Equity 23,220 25,764 11,199 12,030 Total Liabilities & Stockholders' Equity $87,270 $89,996 $74,129 $69,667 Income Statements For the Year Ended December 31, 2016 (S in millions) Coca-Cola Pepsico Net Sales $ 41,863 $ 62,799 Cost of Goods Sold 16,465 28,209 Gross Profit 25,398 34,590 Operating Expense Other Income 16,772 24,805 243 110 Interest Expense 733 1,342 Таx Expense 1,586 2,174 $ 6,550 $ 6,379 Net Income Required: 1. Calculate and compare the 2016 debt to asset ratio for the two companies. 2. Calculate and compare the 2016 return on assets ratio for the two companies. 3. Calculate and compare the 2016 times-interest earned (interest coverage) ratio for the two companies.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem #5:
Below is selected financial data for Coca-Cola and Pepsico.
Selected Balance Sheet Data
December 31, 2016, 2015
Соса-Cola
Pepsico
(S in millions)
2016
2016
2015
2015
Total Assets
$87,270
$ 89,996
$ 74,129
$ 69,667
Total Liabilities
64,050
64,232
62,930
57,637
Stockholders' Equity
23,220
25,764
11,199
12,030
Total
Liabilities
&
Stockholders' Equity
$87,270
$89,996
$74,129
$69,667
Income Statements
For the Year Ended December 31, 2016
(S in millions)
Coca-Cola
Pepsico
$ 41,863
$ 62,799
Net Sales
Cost of Goods Sold
16,465
28,209
Gross Profit
25,398
34,590
Operating Expense
16,772
24,805
Other Income
243
110
Interest Expense
733
1,342
Таx Expense
1,586
2,174
Net Income
$ 6,550
$ 6,379
Required:
1. Calculate and compare the 2016 debt to asset ratio for the two companies.
2. Calculate and compare the 2016 return on assets ratio for the two companies.
3. Calculate and compare the 2016 times-interest earned (interest coverage) ratio for the two
companies.
Item
Соса-Cola
Pepsico
Comparison
1.
2.
3.
Transcribed Image Text:Problem #5: Below is selected financial data for Coca-Cola and Pepsico. Selected Balance Sheet Data December 31, 2016, 2015 Соса-Cola Pepsico (S in millions) 2016 2016 2015 2015 Total Assets $87,270 $ 89,996 $ 74,129 $ 69,667 Total Liabilities 64,050 64,232 62,930 57,637 Stockholders' Equity 23,220 25,764 11,199 12,030 Total Liabilities & Stockholders' Equity $87,270 $89,996 $74,129 $69,667 Income Statements For the Year Ended December 31, 2016 (S in millions) Coca-Cola Pepsico $ 41,863 $ 62,799 Net Sales Cost of Goods Sold 16,465 28,209 Gross Profit 25,398 34,590 Operating Expense 16,772 24,805 Other Income 243 110 Interest Expense 733 1,342 Таx Expense 1,586 2,174 Net Income $ 6,550 $ 6,379 Required: 1. Calculate and compare the 2016 debt to asset ratio for the two companies. 2. Calculate and compare the 2016 return on assets ratio for the two companies. 3. Calculate and compare the 2016 times-interest earned (interest coverage) ratio for the two companies. Item Соса-Cola Pepsico Comparison 1. 2. 3.
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