Trying to figure out if I have the correct numbers for the following as the acid test being greater than one threw me and made me second guess which numbers im using to fill out the chart

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Trying to figure out if I have the correct numbers for the following as the acid test being greater than one threw me and made me second guess which numbers im using to fill out the chart

The image contains financial statement data split into two main sections: a balance sheet (on the left) and a consolidated statement of income (on the right) for The Coca-Cola Company over three years: 2020, 2019, and 2018.

### Balance Sheet (left side):

#### **Current Assets:**
- **Cash and Cash Equivalents:** Amounts are $6,795 (2020), $6,480 (2019), and $8,079 (2018).
- **Short-term Investments:** Amounts are $1,777 (2020), $1,487 (2019), and $2,000 (2018).
- **Marketable Securities:** Amounts are $15 (2020, 2019) and $14 (2018).
- **Trade Accounts Receivable, Less Allowances:** Values are $3,146 (2020), $3,373 (2019), and $3,830 (2018).
- **Inventories, Prepaid Expenses, and Other Assets:** Values sum up to $7,507 (2020), $9,069 (2019), and $10,006 (2018).

Total current assets amount to $19,240 (2020), $20,411 (2019), and $24,930 (2018).

#### **Noncurrent Assets:**
Includes deferred tax assets, property, plant and equipment, trademarks, goodwill, and other intangible assets, leading to total assets of $87,296 (2020), $86,381 (2019), and $83,216 (2018).

#### **Liabilities and Equity:**
- **Current Liabilities:** $14,601 (2020), $26,973 (2019), and $28,742 (2018).
- **Long-term Debt:** $40,213 (2020), $27,516 (2019), and $25,476 (2018).
- **Deferred Income Taxes:** $1,833 (2020), $2,842 (2019), and $3,354 (2018).

Total liabilities and equity are $87,296 (2020), $86,381 (2019), and $83,216 (2018).

### Consolidated Statement of Income (right side):

#### **Revenue and Expenses:**
- **Revenues:** $33,014 (2020), $37,266 (2019), and
Transcribed Image Text:The image contains financial statement data split into two main sections: a balance sheet (on the left) and a consolidated statement of income (on the right) for The Coca-Cola Company over three years: 2020, 2019, and 2018. ### Balance Sheet (left side): #### **Current Assets:** - **Cash and Cash Equivalents:** Amounts are $6,795 (2020), $6,480 (2019), and $8,079 (2018). - **Short-term Investments:** Amounts are $1,777 (2020), $1,487 (2019), and $2,000 (2018). - **Marketable Securities:** Amounts are $15 (2020, 2019) and $14 (2018). - **Trade Accounts Receivable, Less Allowances:** Values are $3,146 (2020), $3,373 (2019), and $3,830 (2018). - **Inventories, Prepaid Expenses, and Other Assets:** Values sum up to $7,507 (2020), $9,069 (2019), and $10,006 (2018). Total current assets amount to $19,240 (2020), $20,411 (2019), and $24,930 (2018). #### **Noncurrent Assets:** Includes deferred tax assets, property, plant and equipment, trademarks, goodwill, and other intangible assets, leading to total assets of $87,296 (2020), $86,381 (2019), and $83,216 (2018). #### **Liabilities and Equity:** - **Current Liabilities:** $14,601 (2020), $26,973 (2019), and $28,742 (2018). - **Long-term Debt:** $40,213 (2020), $27,516 (2019), and $25,476 (2018). - **Deferred Income Taxes:** $1,833 (2020), $2,842 (2019), and $3,354 (2018). Total liabilities and equity are $87,296 (2020), $86,381 (2019), and $83,216 (2018). ### Consolidated Statement of Income (right side): #### **Revenue and Expenses:** - **Revenues:** $33,014 (2020), $37,266 (2019), and
### Financial Performance Comparison: PepsiCo, Inc. and The Coca-Cola Company

#### PepsiCo, Inc. - Selected Financial Data (For years ended December 31)

- **Acid-test ratio (CA-inventory-prepaid)/CL:**
  - 2020: 0.77
  - 2019: 0.66
  - 2018: 0.82

- **Current ratio:**
  - 2020: 0.98
  - 2019: 0.86
  - 2018: 0.99

- **Debt ratio:**
  - 2020: 0.85 
  - 2019: 0.81
  - 2018: 0.81

- **Earnings per share:**
  - 2020: 5.14
  - 2019: 5.23
  - 2018: 8.84

- **Inventory turnover:**
  - 2020: 8.47
  - 2019: 9.32
  - 2018: 9.39

- **Net income ($ in millions):**
  - 2020: $7,120
  - 2019: $7,314
  - 2018: $12,515

- **Rate of return on assets:**
  - 2020: 10.97%
  - 2019: 13.05%
  - 2018: 13.40%

- **Receivables turnover:**
  - 2020: 8.67
  - 2019: 8.98
  - 2018: 9.05

- **Return on assets:**
  - 2020: 9.34%
  - 2019: 10.31%
  - 2018: 17.69%

- **Operating income percentage:**
  - 2020: 14.32%
  - 2019: 15.32%
  - 2018: 15.64%

- **Revenues ($ in millions):**
  - 2020: $70,372
  - 2019: $67,161
  - 2018: $64,661

- **Times interest earned ratio:**
  - 202
Transcribed Image Text:### Financial Performance Comparison: PepsiCo, Inc. and The Coca-Cola Company #### PepsiCo, Inc. - Selected Financial Data (For years ended December 31) - **Acid-test ratio (CA-inventory-prepaid)/CL:** - 2020: 0.77 - 2019: 0.66 - 2018: 0.82 - **Current ratio:** - 2020: 0.98 - 2019: 0.86 - 2018: 0.99 - **Debt ratio:** - 2020: 0.85 - 2019: 0.81 - 2018: 0.81 - **Earnings per share:** - 2020: 5.14 - 2019: 5.23 - 2018: 8.84 - **Inventory turnover:** - 2020: 8.47 - 2019: 9.32 - 2018: 9.39 - **Net income ($ in millions):** - 2020: $7,120 - 2019: $7,314 - 2018: $12,515 - **Rate of return on assets:** - 2020: 10.97% - 2019: 13.05% - 2018: 13.40% - **Receivables turnover:** - 2020: 8.67 - 2019: 8.98 - 2018: 9.05 - **Return on assets:** - 2020: 9.34% - 2019: 10.31% - 2018: 17.69% - **Operating income percentage:** - 2020: 14.32% - 2019: 15.32% - 2018: 15.64% - **Revenues ($ in millions):** - 2020: $70,372 - 2019: $67,161 - 2018: $64,661 - **Times interest earned ratio:** - 202
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