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Please comment or give your views on the Income Statement for the Pepsi company

ID: 2549375 • Letter: P

Question

Please comment or give your views on the Income Statement for the Pepsi company

Pepsi Co; NASDAQ; PEP

Net Sales - $63,525M

Cost of Goods Sold - $28,785M

Gross Profit - $10,509M

Corporate Tax Rate - Reduced from 35% to 21% (p.75)

The Comprehensive Income amount was $5,719M in 2017 compared to $5,729M in 2016. These numbers have increased dramatically from 2015 when the figure was $2,802M.

Other Comprehensive Income Items - Net Currency Translation Adjustment - $1,109M Net Change on Cash Flow Hedges - ($39M) Net Pension and Retiree Medical Adjustments ($159M) Net Change on Securities ($68M) Other ($16M)

Account on bottom line item on Statement of Comprehensive Income - Comprehensive Income Attributed to Pepsi Co $5,719M

Explanation / Answer

From the given information of the Income statement of Pepsico,

It is clearly evident that the Gross Profit amount given is not getting balanced with the other two amounts of Net Sales and Cost of Goods Sold.

If Net Sales are $ 63,525 M and Cost of Goods sold is $ 28,785 M;

Gross Profit should be equal to $ 34,740 M ( $ 63,525 M - $ 28,785 M)

Hope this is helpful!!

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