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) $94,354 $87,296 $69.494 $23,000 $19,300 $92,377 $92,918 $76,226 $16.043 $13,454
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) $94,354 $87,296 $69.494 $23,000 $19,300 $92,377 $92,918 $76,226 $16.043 $13,454
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![### 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 | $21,763 |
| **Current Liabilities** | $19,950 | $25,220 |
| **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 |
| **Stockholders Equity (12/31/21)** | $23,000 | $16,043 |
| **Stockholders Equity (12/31/20)** | $19,300 | $13,454 |
---
### Calculate the debt ratio and debt/equity ratio for each company.
**Table: Debt Ratio and Debt/Equity Ratio Calculation**
| | **A** | **B** | **C** |
|-------------------------|------------------|---------------|--------------|
| | Coca-Cola Co. | PepsiCo Inc. |
| **1. Debt Ratio** | 0.739 | 0.825 |
| **2. Debt/Equity Ratio**| 3.021 | 4.751 |
Explanation:
- **Debt Ratio**: Measures a company's leverage by dividing total liabilities by total assets. It indicates the proportion of a company’s assets that are financed by debt.
- **Debt/Equity Ratio**: A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2fe6a07-c405-4207-a087-23ef0e82e7a3%2Fd7b617cc-91fa-4675-a212-b1577d53f912%2Fsengkk6_processed.jpeg&w=3840&q=75)
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 | $21,763 |
| **Current Liabilities** | $19,950 | $25,220 |
| **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 |
| **Stockholders Equity (12/31/21)** | $23,000 | $16,043 |
| **Stockholders Equity (12/31/20)** | $19,300 | $13,454 |
---
### Calculate the debt ratio and debt/equity ratio for each company.
**Table: Debt Ratio and Debt/Equity Ratio Calculation**
| | **A** | **B** | **C** |
|-------------------------|------------------|---------------|--------------|
| | Coca-Cola Co. | PepsiCo Inc. |
| **1. Debt Ratio** | 0.739 | 0.825 |
| **2. Debt/Equity Ratio**| 3.021 | 4.751 |
Explanation:
- **Debt Ratio**: Measures a company's leverage by dividing total liabilities by total assets. It indicates the proportion of a company’s assets that are financed by debt.
- **Debt/Equity Ratio**: A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets
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