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Financial Reporting Problem Part 1

Financial reporting Problem, Part 1
The company’s annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the accounts, such as the balance sheet, the income statement, and the cash flow statement. The information presented in the annual report would also be essential to potential investor, employee, and any other people that may have interest in financial aspect of the business.
The company’s total assets at the end of 2009 were $39,848,000 (PepsiCo, n.d.). However, in 2010 it’s most recent annual report shows an increase to the previous annual reporting period of $28,305,000 that brings PepsiCo’s total assets to $68,153,000 (PepsiCo, n.d.). This information is important because it demonstrate what the company owns. It gives an understanding of the financial condition of the company, whether or not there have been improvement from the previous years.
The current assets are the first thing on the balance sheet under the asset column. A company lists all of the possessions that it may convert into cash in a short period, that normally takes place with a year or less. Because these assets can easily turn into cash the company refers to them as “liquid” assets. Cash and cash equivalents are the most liquid assets found within the asset portion of a company’s balance sheet. PepsiCo’s cash and cash equivalents for the year end December 25, 2010 are $17,569,000 whereas; in 2009 the company had $12,571,000 in cash and cash equivalents (PepsiCo, n.d.). PepsiCo had a $4,998,000 increase in cash and cash equivalents. This includes short-term investments, accounts and notes receivable, inventories and prepaid expenses, and other current assets. This…...

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...« Previous Post   -   Next Post » Coke vs. Pepsi The Dilemma: You’re at a restaurant. You’ve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the “What’s the difference?” shrug. Perhaps it’s time you laid it on him. People You Can Impress: “Impressed” probably doesn’t accurately reflect the aforementioned waiter’s likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation:  Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks’ similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name “Brad’s Drink,” became an overnight success, and “Doc” Bradham began selling his “Exhilarating...

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