Required Information Benchmark Assignment - Coca-Cola Co. & Pepsico Inc. You will need to use the data below from the two companies to calculate problems and answer the following questions: Coca-Cola Co. (In Pepsico Inc. (In Net Revenue (Sales) Net Income Current Assets Current Liabilities Cash & Cash Equivalents Accounts (Trade) Receivables Total Assets (12/31/21) Total Assets (12/31/20) Total Liabilities (12/31/21) Stockholders Equity (12/31/21) Stockholders Equity (12/31/20) millions) $38.655 $9,771 $22,545 $19.950 $12,625 $3.512 $94,354 $87,296 $69,494 $23,000 $19,300 millions) $79,474 $7,618 $21,783 $26,220 $5,988 $8,680 $92,377 $92,918 $76,226 $16,043 $13,454
Required Information Benchmark Assignment - Coca-Cola Co. & Pepsico Inc. You will need to use the data below from the two companies to calculate problems and answer the following questions: Coca-Cola Co. (In Pepsico Inc. (In Net Revenue (Sales) Net Income Current Assets Current Liabilities Cash & Cash Equivalents Accounts (Trade) Receivables Total Assets (12/31/21) Total Assets (12/31/20) Total Liabilities (12/31/21) Stockholders Equity (12/31/21) Stockholders Equity (12/31/20) millions) $38.655 $9,771 $22,545 $19.950 $12,625 $3.512 $94,354 $87,296 $69,494 $23,000 $19,300 millions) $79,474 $7,618 $21,783 $26,220 $5,988 $8,680 $92,377 $92,918 $76,226 $16,043 $13,454
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:### Required Information
**Benchmark Assignment - Coca-Cola Co. & Pepsico Inc.**
You will need to use the data below from the two companies to calculate problems and answer the following questions.
| | **Coca-Cola Co. (in millions)** | **Pepsico Inc. (in millions)** |
|------------------------------------------|--------------------------------|-------------------------------|
| **Net Revenue (Sales)** | $38,655 | $79,474 |
| **Net Income** | $9,771 | $7,618 |
| **Current Assets** | $22,545 | $21,783 |
| **Current Liabilities** | $19,950 | $26,220 |
| **Cash & Cash Equivalents** | $12,625 | $5,988 |
| **Accounts (Trade) Receivables** | $3,512 | $8,680 |
| **Total Assets (12/31/21)** | $94,354 | $92,377 |
| **Total Assets (12/31/20)** | $87,296 | $92,918 |
| **Total Liabilities (12/31/21)** | $69,494 | $76,226 |
| **Total Liabilities (12/31/20)** | $64,258 | $76,034 |
| **Stockholders Equity (12/31/21)** | $23,000 | $16,043 |
| **Stockholders Equity (12/31/20)** | $19,300 | $13,454 |
This table includes financial data for Coca-Cola Co. and Pepsico Inc. that compares several key metrics, including net revenue (sales), net income, current assets, current liabilities, cash and cash equivalents, accounts receivables, total assets, total liabilities, and stockholders' equity over two fiscal years (2020 and 2021).
- **Net Revenue (Sales)**: Represents total revenue generated from sales before deducting any expenses.
- **Net Income**: The profit of the company after all expenses and taxes have been deducted.
- **Current Assets**: Assets that are likely to be converted into cash, sold, or consumed within a year.
- **Current Liabilities**: Obligations or debts the

Transcribed Image Text:## ROI and ROE Calculation for Coca-Cola Co. and PepsiCo Inc.
In this exercise, we will calculate the Return on Investment (ROI) for Coca-Cola Co. and PepsiCo Inc. using the DuPont model, which involves calculating the margin and turnover for each company. Subsequently, we will calculate the Return on Equity (ROE) for each company.
### Table for Data Entry
| | **Coca-Cola Co.** | **PepsiCo Inc.** |
|----------------|-------------------|------------------|
| **Margin (%)** | | |
| **Turnover** | | |
| **ROI (Margin × Turnover)** | | |
| **ROE** | | |
**Instructions:**
1. **Margin (%)**: Enter the profit margin for each company.
2. **Turnover**: Enter the asset turnover for each company.
3. **ROI**: Calculate the ROI for each company by multiplying the margin by the turnover.
4. **ROE**: Calculate the ROE for each company based on the ROI and other relevant financial metrics of the company.
**Explanation of Concepts:**
- **Margin (%):** This refers to the net profit margin, which is calculated as (Net Income / Revenue) × 100. It indicates the percentage of revenue that is converted into profit.
- **Turnover:** This refers to the asset turnover ratio, which is calculated as Revenue / Average Assets. It indicates how efficiently a company uses its assets to generate sales.
- **ROI (Return on Investment):** This is calculated using the DuPont model as Margin × Turnover. It measures the efficiency of investment in generating profit.
- **ROE (Return on Equity):** This is calculated as Net Income / Shareholder's Equity. It measures the profitability of a company in generating profit from shareholders' equity.
Please complete the table by entering the appropriate values and performing the necessary calculations.
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