BYP 4-1

(a) What were PepsiCos total current assets at December 29, 2007 and December 30, 2006? Answer: The total current assets of PepsiCos at December 29, 2007 were $10,151 and at December 30, 2006 were $9,130. (b) Are assets that PepsiCo included under current assets listed in proper order? Explain. Answer: Yes, the assets are listed in proper order. Current assets are usually assets that a company expects to convert to cash or use within one year. For most businesses the cutoff for classification as current assets is one year from the balance sheet date. For example, accounts receivable are current assets because the company will collect them and convert them to cash within one year. PepsiCo listed their current assets according to GAAP principle which is widely used and followed them correctly. (c) How are PepsiCos assets classified? Answer: PepsiCos assets are classified according to classified balanced sheet. In classified balanced sheet, similar types of assets and liabilities are formed within a group to see the similar economic characteristics. As we are talking about assets so the assets are enlisted below of PepsiCoASSETS Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable intangible assets Nonamortizable Intangible Assets Investments in Noncontrolled Affiliates Other Assets Total Assets We can see that the assets are divided into major four categories and well understood. (d) What are cash equivalents? Answer: Cash equivalents are short-term, highly liquid investments that can be converted into a specific amount of cash including money market funds, bank certificates of deposit, and U.S. Treasury bills and notes. A company may have cash that is restricted for a special purpose. An example is a payroll bank account for paying salaries and wages. Another would be a plant expansion cash fund for financing new construction. (e) What were PepsiCos total current liabilities at December 29, 2007 and December 30, 2006?

Answer: Total current liabilities of PepsiCo at December 29, 2007 and December 30, 2006 were $7,753 and $6,860.

BYP4-2
(a) Based on the information contained in these financial statements, determine each of the following for PepsiCo at December 29, 2007, and for Coca-Cola at December 31, 2007. (1) Total current assets. PepsiCo $10,151 and Coco-Cola $12,151. (2) Net amount of property, plant, and equipment (land, buildings, and equipment). PepsiCo $11,228 and Coca-Cola $8,493. (3) Total current liabilities. PepsiCo $7,753 and Coca-Cola $13,225. (4) Total stockholders (shareholders) equity. PepsiCo $17,325 and Coca-Cola $21,744. (b) What conclusions concerning the companies respective financial positions can be drawn? Answer: Current assets are cash and other resources that are expected to be in cash or used within one year. Current liabilities are obligations that the company is to pay within the coming year. PepsiCos current assets were greater than its current liabilities. But Coca-Colas current assets were less than its current liabilities. It seemed to me that PepsiCo is in a better liquidity position than Coca-Cola. CocaColas stockholders equity represents a slightly larger than PepsiCos. As a result, Coca -Cola has less debt relative to its total assets than PepsiCo. So Coca-Cola is less likely to default on a debt obligation. Examining the home pages of any two companies and answering the following questions. (a) What type of information is available? Answer: After exploring the web, I have decided to choose "Unilever." the website address is www.unilever.com. It is beautifully organized by some categories. The major categories are 1. About us- Vision, Mission statement and company structure. 2. Brands in action- view brands, latest brands and brands that can create well being for human 3. Sustainable living- Humanistic and environmental friendly activities. 4. Innovation- Basically the R&D information. (b) Is any accounting-related information presented? Answer: Yes, there are. 1. I have searched financial data within the site search. The following link will show the result. http://search.unilever.com/search?siteId=www.unilever.com&method=Boolean+Search&Search= financial%20statement&x=8&y=15. 2. The financial statements are given in a pdf and excel sheet manner. http://www.unilever.com/investorrelations/annual_reports/AnnualReportandAccounts2012/financ ial-statements.aspx 3. Other information are given here. http://www.unilever.com/resource/download/index.aspx. There are no other accounting related information given.

(c) Is the home page informative, promotional, or both? Why? Answer: I have to say it is both. Because the site is full with both brand information and a lot of CSR activities. The first thing that comes up in the homepage is the brand info (Axe) and also some activities that Unilever is associated with. Not only that there are company information, share price and area for downloading. So i think they have catered the homepage with promotion and information.