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Ratio, Vertical, and Horizontal analyses

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Examine PepsiCo, Inc.'s Consolidated Balance Sheet on p. A6 in Appendix A of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2004 and 2005.

Calculate the following for PepsiCo, Inc. and show all calculations:
a) Debt to total Asset Ratio for 2005
b) Debt to total Asset Ratio for 2004
c) Compute the vertical analysis of current Liabilities to total Liabilities for 2005 & 2004, and express your result as a percentage
d) Compute the horizontal analysis since base period - the change in total assets for 2005 to 2004. Compute the change in current liabilities for 2005 to 2004

Examine The Coca-Cola Company's Consolidated Balance sheet on p. B2 in Appendix B of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.
Calculate the following for Coca-Cola and show your work:

a) Debt to total Asset Ratio for 2005
b) Debt to total Asset Ratio 2004
c) Compute the vertical analysis of current Liabilities to total Liabilities for 2005 & 2004, and express your result as a percentage
d) Compute the horizontal analysis since base period - the change in total assets for 2005 to 2004. Compute the change in current liabilities for 2005 to 2004

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Solution Summary

The expert examines ratio, vertical and horizontal analysis. Debt to total asset ratios are examined.

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I am attaching an Excel file here with all ratios (Liquidity, solvency, & profitability)

Wishing you all the best.

PEPSI CO.
Ratio Analysis
2004 2005
A) Liquidity Ratios:
Current Ratio 1.28 1.11
Acid Test Ratio 0.95 0.87
Receivables Turnover 9.76 9.99
Average Days Receivables 37.41 36.55
Inventory ...

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