This is an Accounting Assignment: the website needed to obtain information is ht
ID: 2555165 • Letter: T
Question
This is an Accounting Assignment: the website needed to obtain information is https://www.pepsico.com/docs/album/annual-reports/pepsico-inc-2016-annual-report.pdf
Use Excel or Table function in MS Word to create a table for every data that you used in your analyses and the page number where they can be located. For example:
Data Page Number
Net Revenue 63
Accounts Receivable 98
You may use Table function in Word or Excel for data analysis. C. Trend Analysis: a. Make a 3-year trend analysis, using 2014 as the base year, of [1] net sales and [2] net income. b. Comment on the significance of the trend analysis results.
D. Ratios Analysis (Include Formulas): a. Compute for 2016 and 2016 the [1] profit margin, [2] asset turnover, [3] return on assets, and [4] return on common stockholders’ equity. Comment on PepsiCo’s profitability. b. Compute for 2016 and 2015 the [1] debt to total assets and [2] times interests earned ratio. How would you evaluate PepsiCo’s long-term solvency?
Explanation / Answer
2016
2015
Profit Margin
= Net Income / Revenue
= 6379 / 62799
= 5501 / 63056
Pg 76
10.16%
8.72%
Asset Turnover
= Net Revenue / Total Assets
= 62799 / 74129
= 63056 / 69667
Pg 76 & 79
0.85
0.91
Return on Assets
= Net Income / Total Assets
= 6379 / 74129
= 5501 / 69667
Pg 76 & 79
8.61%
7.90%
Return on Common Stockholder's Equity
= Net Income available for stockholders / Shtockholder's Equity
= 6329 / 11246
= 5452 / 12068
Pg 76 & 79
0.56
0.45
2016
2015
Profit Margin
= Net Income / Revenue
= 6379 / 62799
= 5501 / 63056
Pg 76
10.16%
8.72%
Asset Turnover
= Net Revenue / Total Assets
= 62799 / 74129
= 63056 / 69667
Pg 76 & 79
0.85
0.91
Return on Assets
= Net Income / Total Assets
= 6379 / 74129
= 5501 / 69667
Pg 76 & 79
8.61%
7.90%
Return on Common Stockholder's Equity
= Net Income available for stockholders / Shtockholder's Equity
= 6329 / 11246
= 5452 / 12068
Pg 76 & 79
0.56
0.45
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