Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

How do I do this?

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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS