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Ratio, Vertical, and Horizontal analyses

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

Solution Preview

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 ...

Solution Summary

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

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