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Scroll all the way down to “Financials� and click on “Income Statement.� Compute the annual percentage change between the three years for the following:
a. Total revenue.
b. Net income applicable to common shares.
a.
To calculate: The annual percentage change in the total revenue of PepsiCo.
Introduction:
PepsiCo, Inc.:
PepsiCo, Inc. is an American multinational beverage, food, and snack corporation founded in the year 1965, resulting from the merger between Pepsi-Cola Company as well as Frito-Lay Inc. It mainly deals in manufacturing, marketing, and distribution of beverages, snacks, and various other foods. It was founded in 1898 by Caleb Braham.
Answer to Problem 2WE
For PepsiCo., the annual percentage change in the total revenues for 2016-2017, 2017-2018, and 2018-2019 are 1.15%, 1.78%, and 3.86%, respectively.
Explanation of Solution
The calculation of annual percentage change in the total revenue for 2016-2017:
The calculation of annual percentage change in the total revenue for 2017-2018:
The calculation of annual percentage change in the total revenue for 2018-2019:
b.
To calculate: The annual percentage change in the net income applicable to common shares.
Introduction:
PepsiCo, Inc.:
PepsiCo, Inc. is an American multinational beverage, food, and snack corporation founded in the year 1965, resulting from the merger between Pepsi-Cola Company as well as Frito-Lay Inc. It mainly deals in manufacturing, marketing, and distribution of beverages, snacks, and various other foods. It was founded in 1898 by Caleb Braham.
Answer to Problem 2WE
For PepsiCo.,
The annual percentage change is -23.24% in the net income applicable (NIA) to common shares for 2016-2017.
The annual percentage change is 157.84% in the net income applicable (NIA) to common shares for 2017-2018.
The annual percentage change is -41.54% in the net income applicable to common shares for 2018-2019.
Explanation of Solution
Calculation of annual percentage change in Net Income Applicable to Common Shares for 2016-2017:
Calculation of annual percentage change in Net Income Applicable to Common Shares for 2017-2018:
Calculation of annual percentage change in Net Income Applicable to Common Shares for 2018-2019:
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Chapter 2 Solutions
Foundations of Financial Management
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