Running Head: FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 1

Financial Statement Analysis – Coca-Cola Company & PepsiCo

ACT 350 – Intermediate Accounting

Colorado State University – Global Campus

Professor Debra Touhey

May 1, 2015
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 2

A – Primary Lines of Business

Coca-Colas primary business line is in beverage manufacturing, marketing and

distribution. They license and market more than 500 non-alcoholic beverage brands including,

soft drinks, enhanced waters, ready to drink teas and coffees, sports and energy drinks, etc. as

well as concentrates, syrups and fountain syrups (Coca-Cola Company, 2013). PepsiCo’s

primary business line is a global food and beverage company that, through operations, authorized

bottlers and contract manufacturers, PepsiCo, makes, markets and distributes a wide variety of

foods and beverages, including Frito Lay, Quaker Foods, soft drinks, juice, etc. (PepsiCo, 2013).

B – Coca-Cola or Pepsi Beverage Industry Dominance?

If one was viewing the business line of each company, it could be assumed that Coca-

Cola has a dominant position in beverage sales. This is confirmation of what is actualized from

each company’s annual report. PepsiCo (2013) stated that approximately 32% of the total

revenue in 2013 was allocated to beverages equaling $21.1 billion. Whereas Coca-Cola

Company allocated 100% of their revenue to beverages (this includes beverage bases) at $46.8

billion dollars (Coca-Cola Company, 2013). This gives Coca-Cola dominance in the beverage

industry.

C – Percentage Increase in Total Assets 2012 to 2013

Coca-Cola reported their total assets on the 2013 balance sheet as $90,055 in 2013 and in

2012 a total of $86,174. Trend percent analysis or index number trend analysis is a form of

horizontal analysis that reveals patterns in data across successive periods (Wild, Shaw, &

Chiapetta, 2013). Dividing the analysis period amount (2013) by the base year amount (2012)

and multiplying by 100, realizes this calculation in percentage form. Coca-Cola Company’s 2013

amount of $90,055 is divided by the 2012 base year amount of $86,174 and multiplied by 100
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 3

giving in increase of 4.5% or stating that 2013 was 104.5% as compared to 2012. PepsiCo

increased its’ total assets by 3.81% or was 103.81% of it’s base year of 2012. Furthermore,

PepsiCo increased it current (more liquid) assets, by 18.61% compared to Coca-Cola Company’s

3.22%, although, Coca-Cola Company had a greater overall increase in its assets.

Coca-Cola Company PepsiCo

2013 2012 Increase 2013 2012 Increase
Current Assets $31,304 $30,328 103.22% $22,203 $18,720 118.61%
Total Assets $90,055 $86,174 104.50% $77,478 $74,638 103.81%

D – Greatest Depreciation & Amortization

Depreciation is an accounting method for cost allocation (Kieso, Weygandt, Warfield,

2013). Depreciation allows for the accounting cost of tangible assets to be expensed in the

periods profiting from the asset (Kieso et al., 2013). Coca-Cola depreciates principally with the

straight-line method over the useful life (Coca-Cola Company, 2013 p.84). Coca-Cola Company

(2013) also states that the intangible assets subject to amortization have a definite life and the

intangibles that have an indefinite life are not amortized (p. 84). In year 2013 Coca-Cola’s

depreciation and amortization was stated at $1,977.

PepsiCo also depreciates with the straight-line method over the assets useful life. Land is

not depreciated and construction in progress is not depreciated until ready for service (PepsiCo,

2013). For year 2013, PepsiCo’s total depreciation and amortization was $2,663, significantly

higher than that of Coca-Cola Company.

One major reason for PepsiCo’s depreciation and amortization to be higher than Coca-

Cola Company could be due to their business line. While Coca-Cola only manufactures

beverage products, PepsiCo’s line of business is expanded into the food industry. Their property,
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 4

plant and equipment (PPE) depreciation was significantly higher at $18,386 compared to Coca-

Cola’s at $10,065.

E – Income Format

Income statements summarize net income from revenue, expenses, gains and losses

(Kieso et al., 2013). There are different methods of reporting on the income statement from

multi step, which separates operating transactions from non-operating transactions and matches

costs and expenses with the respective revenues (Kieso et al., 2013). The condensed income

statement does note present all the desired expense detail, so companies group expenses together.

Those who wish to analyze these types of income statements must look to the supporting

schedules for more detailed information (Kieso et al., 2013). Single step income statements

consists of two groupings: revenues and expenses; expenses are deducted from revenue to arrive

at the net income figure (Kieso et al., 2013).

Coca-Cola and PepsiCo both use the comparative consolidated statements of income.

They are very similar in their approach. There are slight differences in the way items are broken

out. Coca-Cola subtotals gross profit differently than PepsiCo. Coca-Cola also totals net income

before taxes whereas PepsiCo does not provide that subtotal.

F – Gross Profit – Operating Profit – Net Income

Common size percentage analysis on income statements can uncover potentially

important changes in a company’s finances (Wild et al., 2013). It is a tool used to analyze

figures relative to the percentage of sales, showing valuable trends. Listed in the charts below

are both Coca-Cola and PepsiCo’s income statements in common size form:

Comparative Income Statement Analysis - Coca-Cola

3-Year 3-Year
2013 2012 2011 Total 2013 2012 2011 Total
Net Operating 46,85 48,01 46,54 141,41 100% 100% 100% 100%
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 5

Revenues 4 7 2 3
Cost of Goods 18,42 19,05 18,21
Sold 1 3 5 55,689 39.3% 39.7% 39.1% 39.4%
28,43 28,96 28,32 60.3
Gross Profit 3 4 7 85,724 60.7% % 60.9% 60.6%
17,31 17,73 17,42
SG&A Expenses 0 8 2 52,470 36.9% 36.9% 37.4% 37.1%
Other Operating
Expenses 895 447 732 2,074 1.9% 0.9% 1.6% 1.5%
10,22 10,77 10,17 22.4
Operation Income 8 9 3 31,180 21.8% % 21.9% 22.0%
Interest Income 534 471 483 1,488 1.1% 1.0% 1.0% 1.1%
Interest Expense 463 397 417 1,277 1.0% 0.8% 0.9% 0.9%
Equipment Income
(loss) 602 819 690 2,111 1.3% 1.7% 1.5% 1.5%
Other income
(loss) 576 137 529 1,242 1.2% 0.3% 1.1% 0.9%
Income before 11,47 11,80 11,45 24.6
Taxes 7 9 8 34,744 24.5% % 24.6% 24.6%
Income taxes 2,851 2,723 2,812 8,386 6.1% 5.7% 6.0% 5.9%
Consolidated Net 18.9
income 8,626 9,086 8,646 26,358 18.4% % 18.6% 18.6%
Less: Net Income
Attributable to
Non Controlling
Interest 42 67 62 171 0.1% 0.1% 0.1% 0.1%
18.8
Net Income 8,584 9,019 8,584 26,187 18.3% % 18.4% 18.5%

Comparative Income Statement Analysis - PepsiCo

3-Year 3-Year
2013 2012 2011 Total 2013 2012 2011 Total
Net Operating 66,41 65,49 66,50 198,41
Revenues 5 2 4 1 100% 100% 100% 100%
Cost of Goods 31,24 31,29 31,59
Sold 3 1 3 94,127 47.0% 47.8% 47.5% 47.4%
35,17 34,20 34,91 104,28 52.2
Gross Profit 2 1 1 4 53.0% % 52.5% 52.6%
25,35 24,97 25,14
SG&A expenses 7 0 5 75,472 38.2% 38.1% 37.8% 38.0%
Other Operating
Expenses 110 119 133 362 0.2% 0.2% 0.2% 0.2%
13.9
Operation Income 9,705 9,112 9,633 28,450 14.6% % 14.5% 14.3%
Interest Income
and Other 97 91 57 245 0.1% 0.1% 0.1% 0.1%
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 6

Interest Expense 911 899 856 2,666 1.4% 1.4% 1.3% 1.3%
Income before 12.7
Taxes 8,891 8,304 8,834 26,029 13.4% % 13.3% 13.1%
Income taxes 2,104 2,090 2,372 6,566 3.2% 3.2% 3.6% 3.3%
Consolidated Net
income 6,787 6,214 6,462 19,463 10.2% 9.5% 9.7% 9.8%
Less: Net Income
Attributable to
Non Controlling
Interest 47 36 19 102 0.1% 0.1% 0.0% 0.1%
Net Income 6,740 6,178 6,443 19,361 10.1% 9.4% 9.7% 9.8%

The gross profits, operating profits and net incomes for Coca-Cola’s three- year period

from 2011, 2012 and 2013 were $85,724, $31,180 and $26,187 respectively. The gross profits,

operating profits and net incomes for PepsiCo’s three- year period from 2011, 2012 and 2013

were $104,284, $28,450 and $19,361 respectively. Analyzing the percentage trends for each

company it appears that Coca-Cola’s performance is higher than that of PepsiCo and yielded

better financial results. Coca-Cola’s percentage for gross profit for the three-year period was

60.6%, their operating profits were at 22% and net income at 18.5% after taxes. PepsiCo’s

percentage of gross profit for the same three-year period was analyzed at 52.6%, operating profit

14.3% and net income, after taxes, was 9.8%.

G – Balance Sheet Format

The balance sheet can be referred to as the statement of financial position (Kieso et al.,

2013). The usefulness of a balance sheet can provide ways to calculate rates of return, evaluate a

company’s structure, assess risk, liquidity, solvency, and flexibility (Kieso et al., 2013). The

format the each of the companies is a comparative consolidated balance sheet, broken down by

subsection where the material is arranged so that important relationships are shown (Kieso et al.,

2013).
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 7

H – Working Capital

Working capital is the total of current assets less current liabilities. Working capital needs

to be sufficient to cover short-term debts, carry inventory, etc. Companies that have low working

capital are less likely to have the ability to meet short-term obligations or continue operating

(Wild et al., 2013). Working capital is also viewed in ratio format and this ratio can be achieved

by dividing the current assets by the current liability. Higher ratios show a company has strength

in terms of liquidity and meeting obligations. However, extremely high ratios can mean a

company has invested too much in current assets, which can yield a low return on investments

(Wild et al, 20313).

In year 2013, Coca-Cola’s current ratio for working capital is 1.13 and was achieved by

dividing $31,304 (current assets) by $27,811 (current liabilities) versus PepsiCo’s ratio of 1.24,

which was calculated by dividing $22,203 (current assets) by $17,839 (current liabilities). Coca-

Cola has $3,493 in working capital funds ($31,304 less $27,811) versus PepsiCo’s 4,364

($22,203 less $17,839). It appears PepsiCo’s assets are higher than their liabilities and they are

in a better position to cover the short-term debts. Both Coca-Cola and PepsiCo must figure out

what ratio or dollar amount they need to maintain to cover short-term obligations without having

to dispose of current assets.

I – Asset Structure

There are a few differences in the asset structure between Coca-Cola and PepsiCo. The

first is their current versus long term assets. Coca-Cola holds 66% long-term assets and 34%

short-term assets compared to PepsiCo’s 71% long-term assets and 29% short term assets. The

key difference in this ratio is the cash and cash equivalents percentages. Coca-Cola has a 19%

cash and cash equivalents percentage compared to PepsiCo’s 12.4%. In addition, another key
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 8

difference in the asset structures is Coca-Cola’s equity investment method and franchising rights

from bottlers.

J – Trends in Cash

Dividing the operating cash flow by the net sales, expresses a percentage the company’s

cash flow in comparison to their net sales. This ratio gives the amount in dollars received back

for every dollar of sales produced. Higher percentages show healthier cash flow and tracking

this percentage historically allows for analysis and variances to create relationships from year to

year (Loth, n.d). Coca-Cola has a higher percentage of cash from operating activities as seen in

the below charts.

Trends in Cash from Operating Activities - PepsiCo

2013 2012 2011
Net Cash from Operating Activities 9,688 8,479 8,944
Net Sales 66,415 65,492 66,504
14.6% 12.9% 13.4%

Trends in Cash from Operating Activities - Coca-Cola

2013 2012 2011
Net Cash from Operating Activities 10,542 10,645 9,474
Net Sales 46,854 48,017 46,542
22.5% 22.2% 20.4%

K – Cash & Cash Equivalents

The cash and cash equivalents reported by Coca-Cola at the end of 2013 totaled $10,414.

PepsiCo’s cash and cash equivalents equaled $ 9,375. Each company classifies cash as

consolidated cash and cash equivalents as short-term highly liquid investments that will mature

in three moths or less. Coca-Cola states in their notes that consolidated cash and cash

equivalents, short-term investments and marketable securities are held by foreign subsidiaries

(Coca-Cola, 2013 px .70). PepsiCo states their cash consists of consolidated cash and cash
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 9

equivalents as short-term investments consist primarily of short-term time deposits and index

funds (PepsiCo, 2013 p 104).

L – Accounts Receivable

Accounts and notes receivable are considered trade receivables because they are results

from the company’s sales. PepsiCo’s accounts and notes receivable from the consolidated 2013

balance sheet are stated at $6,954 million. Under the supplemental financial information for

accounts and notes receivables, the trade receivables were listed at $6,178, other receivables at

$921, and the amount written off for bad debts was $34 million and allowance for doubtful

accounts at $145 million. Coca-Cola reported $4,873 million in trade receivables on their 2013

consolidated balance sheet with $14 million in bad debt to be written off. They list their

allowance for doubtful accounts at $61 million. PepsiCo showed the greatest allowance for

doubtful accounts at $145 million at 2% compared to Coca-Cola at $14 million and 0.2%.

M – Inventory

In 2013 on each consolidated balance sheet, respectively, Coca-Cola stated $3,277

million in inventories and PepsiCo stated $3,409. Coca-Cola’s total assets were stated at

$90,055 giving 3.64% of total inventory versus total assets. PepsiCo’s total assets were stated at

$77,478 for a total inventory asset of 4.4% versus total company assets. PepsiCo has a higher

value of inventory in their total assets.

N – Inventory Costing Method

PepsiCo state in their annual report that in 2011 they changed from the LIFO method to

the average cost method. They believe this change allowed them to improve financial reporting

by better matching revenues and expenses (PepsiCo, 2013 p. 73). Under their significant

accounting policy PepsiCo states inventories are valued at the lower of cost or market and cost is
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 10

determined using the average (PepsiCo, 2013 p. 79). Coca-Cola states they use the FIFO method

to record their inventory and they base their cost on the average cost or first-in, first-out methods

(Coca-Cola Company, 2013 p. 91).

O – Inventory Ratios

Inventory Ratios - PepsiCo

2013
Cost of Goods Sold 31,243 Inventory
Inventory: Average of beginning and ending inventory = 8.94
3,495 Ratio
for 2013: (3,277 + 3,264)/2
365 divided by 8.94 = 40.8 Inventory turnover in Days
Inventory Ratios - Coca-Cola
2013
Cost of Goods Sold 18,421 Inventory
= 5.63
Inventory: Average of beginning and ending inventory 3,271 Ratio
for 2013: (3,277 + 3,264)/2
365 divided by 5.63 = 64.8 Inventory turnover in Days

Inventory turnover ratios are efficiency ratios and show how affectively a company uses

its’ assets (Wild et al., 2013). These figures are significant because they show that PepsiCo has a

lower amount of inventory to sales – they are effective with their inventory. PepsiCo turns over

their inventory approximately 24 days faster than that of Coca-Cola.

P – Property Plant and Equipment

Assets of a durable nature are called property, plant and equipment assets (PP&E) (Kieso

et al., 2013). Other terms can be plant assets or fixed assets (Kieso et al., 2013). PP&E assets

are for use in operations and are generally depreciated over the long term. Coca-Cola’s 2013

balance sheet reports PP&E at $14,967 and PepsiCo recorded their PP&E at $18,575 million.

Coca-Cola’s percentage of total PP&E assets in comparison to their total assets is 16.61% and

PepsiCo’s PP&E assets are 23.97% of their total $77,748 in assets. Following, in the charts
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 11

below, the percentage breakdown between land, building and improvements, machinery, fleet

and construction in progress is listed:

PepsiCo
Land and Improvements 1,883 5%
Buildings and Improvements 7,832 21%
Machinery, Fleet and Software 25,415 69%
Construction in Progress 1,831 5%
36,961 100%
Less Depreciation 18,386
18,575

Coca-Cola Company
Land 1,011 4%
Buildings and Improvements 5,605 22%
Machinery, Equipment and Vehicle Fleet 17,551 70%
Construction in Progress 865 3%
25,032 100%
Less Depreciation 10,065
14,967

Q – Depreciation Methods for Property, Plant & Equipment

The depreciation amounts for 2013 for Coca-Cola, and PepsiCo were $10,065 and

$18,386 respectively. Coca-Cola principally utilizes the straight-line method over the useful life

and these methods are reviewed periodically within the following ranges: Buildings 40 years,

machinery and fleet, 20 years, land is not depreciated and construction is not depreciated until

ready for services (Coca-Cola company, 2013 p. 84). PepsiCo depreciates utilizing the straight-

line method as well. Land is not depreciated and construction is not depreciated until ready for

service. PepsiCo depreciates improvements to land from 10 to 34 years, buildings from 15 to 44

years and machinery and fleet, from 5 to 15 years (PepsiCo, 2013 p. 83)
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 12

R – Asset Turnover, Profit Margin on Sales, Rate of Return on Assets

Asset Turnover Ratios - PepsiCo

2013
Total Sales 66,415
Average Total Assets (Average of Beginning and = 0.87 Asset Turnover
76,058
Ending assets for 2013: (77,478 = 74,638)/2)

Asset Turnover Ratios - Coca-Cola

2013
Total Sales 46,854
Average Total Assets (Average of Beginning and = 0.53 Asset Turnover
88,115
Ending assets for 2013: (90,055 + 86,174)/2)

The asset turnover ration is a computation that tells us how efficient a company is at

using their assets to produce sales. PepsiCo’s ratio at .87 or 87% and is significantly higher than

that of Coca-Cola. This ratio tells us that PepsiCo is more efficient with the use of their assets to

produce sales.

Profit Margin on Sales - PepsiCo

2013
Net income 6,740 Profit Margin
= 10.15%
Net Sales 66,415 on Sales

Profit Margin on Sales – Coca-Cola

2013
Net Income 8,584 Profit Margin
= 18.32%
Net Sales 46,854 on Sales

The profit margin ratio is a calculation that allows one to analyze the net income to each

sales dollar (Wild et al., 2013). As shown above, Coca-Cola’s profit margin on sales is

significantly higher than that of PepsiCo. The profit margin ratio is measured by showing net

income as a percent of sales (Wild et al., 2013). Both profit margin and total asset turnover make

up the two basic components of operating efficiency (Wild et al., 2013).

FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 13

Return on Assets - PepsiCo

2013
Net income 6,740 Return on
= 8.86%
Average Total Assets (Average of Beginning and 76,058 Assets
Ending assets for 2013: (77,478 = 74,638)/2)

Return on Assets - Coca-Cola

2013
Net Income 8,584 Return on
= 9.74%
Average Total Assets (Average of Beginning and 88,115 Assets
Ending assets for 2013: (90,055 + 86,174)/2)

The return on assets (ROA) is calculated by dividing net income by average total assets

(Kieso et al., 2013). The total ROA is also achieved by multiplying the profit margin percentage

by the asset turnover ratio. This combines the effects of profit margin and asset turnover. While

PepsiCo had a lower profit margin, their asset turnover was high giving them a total return on

assets that was close to Coca-Cola’s, showing they are efficient in their strategies.

S – Intangible Assets

PepsiCo – 2013 Intangibles

Amortizable Intangibles 1,638 2%
21.5
Goodwill 16,613 %
18.5
Other Nonamortizable Intangibles 14,401 %
Total Intangibles 32,652 Percentage of
42%
Total Assets 77,478 Total Intangibles

Coca-Cola Company – 2013 Intangibles

Trademarks 6,744 7%
Franchise Rights 7,415 8%
Goodwill 12,312 14%
Other Intangibles 1,140 1%
Total Intangibles 27,611 Percentage of
31%
Total Assets 90,055 Total Intangibles
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 14

Coca-Cola’s intangibles consist of franchises, trademarks and goodwill, etc. (Coca-Cola

Company, 2013 p. 98). PepsiCo’s intangible assets consist of acquired franchise rights, brands,

goodwill and other identified intangibles (PepsiCo, 2013 p. 83). PepsiCo has 9% more money

invested into intangible assets that Coca-Cola.

T – Intangible Asset Amortization

Coca-Cola bases amortization basis on whether the intangible asset has a definite life.

Tests are performed for impairment on assets with definite lives if conditions exist that indicate a

carrying value is not recoverable. For intangibles with indefinite lives, impairment is tested at

least annually if there is any indication the asset is impaired (Coca-Cola, 2013 p. 38). The

factors considered for useful life are the contractual terms of the agreement related to the asset,

historical performance and the company’s long-term strategy for using the asset (Coca-Cola

Company, 2013 p.84). PepsiCo’s strategy for amortizing intangible assets is: acquired franchise

rights, 56 to 60 years, reacquired franchise rights, 1 to 14 years, brands, 5 to 40 years and other

identifiable intangibles, 10 to 24 years (PepsiCo, 2013 p. 83).

U – Net Revenues

Net revenues for PepsiCo in year 2013 were $66,415 and Coca-Cola’s net revenues were

stated at $46,854. PepsiCo increased its revenue dollars more than Coca-Cola in year 2013 as

compared to year 2012. Horizontal trend analysis divides the analysis year (2013) amount by the

base year (2012) and the variation is computed. Coca-Cola’s revenue decreased by 2.42% while

PepsiCo’s increased by 1.41%.

Net Revenues Trend Analysis - Coca-Cola

2013 2012 2013 2012
Net Operating Revenues 46,854 48,017 97.58% 100%
FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 15

Net Revenues Trend Analysis - PepsiCo

2013 2012 2013 2012
Net Operating Revnues 66,415 65,492 101.41% 100%

V – Revenue Recognition Policies

The revenue recognition policies of Coca-Cola Company and PepsiCo are recorded

similarly with very slight differences. PepsiCo’s polices state that revenue is recognized upon

shipment or delivery depending on the contractual sales terms where there is not the right of

return (PepsiCo, 2013 p. 41). PepsiCo also offers sales incentives and discounts which are

primarily accounted for as a reduction of revenue (PepsiCo, 2013 p. 41). Coca-Cola recognizes

revenue when an arrangement exists, delivery has occurred and sales price is fixed and

collectability is reasonably assured (Coca-Cola Company, 2013 p. 41). Otherwise stated, as

revenue is recognized when the transfer of ownership to bottling partners, resellers or other

customers (Coca-Cola Company, 2013 p. 41). Coca-Cola also offers incentives that their

customers can earn which lead to a reduction in revenue that is recorded and they do not allow

for the right of return in any matter except for manufacturing related defects (Coca-Cola

Company, 2013 p. 41).

Conclusion

In conclusion, financial analysis assists in determining a company’s health and stability.

It gives an investor an idea of how a company operates. For example, while PepsiCo had a lower

profitability, we were shown in the above analysis that they are very efficient with their

operations and assets. Government agencies also use financial statements to determine the

legitimacy of a company’s financial decision making. Financial statement preparation,

understanding and analysis is crucial in business development as well.

FINANCIAL STATEMENT ANALYSIS – COCA-COLA & PESPICO 16

References

Coca-Cola Company. (2013) Annual report 2013. Retrieved from

https://portal.csuglobal.edu/fileman/files/schoology/courses/content/ACT350/winter2014

a/courseFiles/2013-CocaCola_AnnualReport_Portfolio.pdf

Kieso, D., Weygandt, J., Warfield, T. (2013). Intermediate Accounting (15th Ed). Hoboken,

NJ: John Wiley & Sons, Inc.

Loth, R. (n.d.) Analyze Cash Flow the Easy Way. Retrieved from

http://www.investopedia.com/articles/stocks/07/easycashflow.asp

PepsiCo. (2013) Annual Report 2013. Retrieved from

https://portal.csuglobal.edu/fileman/files/schoology/courses/content/ACT350/winter2014

a/courseFiles/2013-PepsiCo_AnnualReport_Portfolio.pdf

Wild, J. J., Shaw, K. W., & Chiapetta, B. (2013). Fundamental accounting principles (21st

ed.). New York, NY: McGraw-Hill Irwin.