Week 7

Checkpoint

PepsiCo.

Appendix A:

Current ratio for 2005:

$10,454 (Current Assets)

$ 9,406 (Current Liabilities) $10,454 divided by $9,406 is equaled to 1.11%

Current ratio for 2004:

$8,639 (Current Assets)

$6,752 (Current Liabilities) $8,639 divided by $6,752 is equaled to 1.28%

Vertical analysis for 2005:

Current Assets divided by Total Assets 10,454 / 31,727 = .3294 or 32.9%

Vertical analysis for 2004:

Current Assets divided by Total Assets 8,639 / 27,987 = .3086 or 30.9%

Horizontal analysis:

Current Assets 2005 divided by Current Assets 2004 10,454 / 8,639 = 1.21 or 21%

Current Liabilities 2005 divided by Current Liabilities 2004 9,406 / 6,752 = 1.39 or 39%

These analysis shows that the PepsiCo has had an increase in assets by 21% from one year to the next, with an increase in liabilities of 39%. This is a result of the company obtaining more liabilities.

Appendix B:

Current Ratio for 2005:

$10,250 (Current Assets)

$ 9,836 (Current Liabilities) $10,250 divided by $9,836 is equaled to 1.04%

Current Ratio for 2004:

$12,281 (Current Assets)

$11,133 (Current Liabilities) $12,281 divided by $11,133 is equaled to 1.10%

Vertical analysis for 2005:

Current Assets divided by Total Assets 10,250 / 29,427 = .348 or 34.8%

Vertical analysis for 2004:

Current Assets divided by Total Assets 12,281 / 31,441 = .3906 or 39.1%

Horizontal analysis:

Current Assets 2005 divided by Current Assets 2004 10,250 / 12,281 = .8346 or 83.5%

Current Liabilities 2005 divided by Current Liabilities 2004 9,836 / 11,133 = .8834 or 88.3%

These analysis shows that the Coca Cola Company and Subsidiaries has had a decrease in assets by 83.5% from one year to the next, with a decrease in liabilities of 88.3%. This is a result of the company decreasing liabilities.

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