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Balance Sheet 2016 2015 2014 Cash and Cash Equivalents $9,158,000 $9,096,000 $6,

ID: 2575786 • Letter: B

Question

Balance Sheet

2016

2015

2014

Cash and Cash Equivalents

$9,158,000

$9,096,000

$6,134,000

Short Term Investments

$6,967,000

$2,913,000

$2,592,000

Net Receivables

$6,694,000

$6,913,000

$6,651,000

Inventory

$2,273,000

$2,720,000

$3,143,000

Other Current Assets

$1,547,000

$1,865,000

$2,143,000

Total Current Assets

$27,089,000

$23,031,000

$$20,663,000

Long Term Investments

$1,950,000

$2,311,000

$2,689,000

Fixed Assets

$16,591,000

$16,317,000

$17,244,000


Goodwill

$14,430,000

$14,177,000

$14,965,000

Intangible Assets

$13,433,000

$13,081,000

$14,088,000

Other Assets

$636,000

$750,000

$860,000

Deferred Asset Charges

$0

$0

$0

Total Assets

$74,129,000

$69,667,000

$70,509,000

Current Liabilities

Accounts Payable

$14,243,000

$13,507,000

$13,016,000

Short-Term Debt/ Current Portion of Long-Term Debt

$6,892,000

$4,071,000

$5,076,000

Other Current Liabities

$0

$0

$0

Total Current Liabilities

$21,135,000

$17,578,000

$18,092,000

Long-Term Debt

$30,053,000

$29,213,000

$23,821,000

Other Liabilities

$6,669,000

$5,887,000

$5,744,000

Deferred Liabilites Charges

$5,073,000

$4,959,000

$5,304,000

Misc. Stocks

($151,000)

($145,000)

($140,000)

Minority Interest

$104,000

$107,000

$110,000

Total Liabilities

$62,883,000

$57,599,000

$52,931,000

Stockholders Equity

Common Stocks

$24,000

$24,000

$25,000

Capital Surplus

$4,091,000

$4,076,000

$4,115,000

Retained Earnings

$52,518,000

$50,472,000

$49,092,000

Treasury Stock

($31,468,000)

($29,185,000)

($24,985,000)

Other Equity

($13,919,000)

($13,319,000)

($10,669,000)

Total Equity

$11,246,000

$12,068,000

$17,578,000

Total Liabilities and Equity

$74,129,000

$69,667,000

$70,509,000

Go into the balance sheet and do an inventory analysis including inventory turns and whether inventory is increasing (out of control) or decreasing (being brought into better control.) Where do they warehouse? You might want to compare their numbers to industry averages or the performance of their main competitors.

This is on PepsiCO. Here is the balance sheet. Can you please do an analysis of their balance sheet. Or answer the questions above? There might need to be some research done. Thank you in advance. It is due tonight by 9PM EST

2016

2015

2014

Cash and Cash Equivalents

$9,158,000

$9,096,000

$6,134,000

Short Term Investments

$6,967,000

$2,913,000

$2,592,000

Net Receivables

$6,694,000

$6,913,000

$6,651,000

Inventory

$2,273,000

$2,720,000

$3,143,000

Other Current Assets

$1,547,000

$1,865,000

$2,143,000

Total Current Assets

$27,089,000

$23,031,000

$$20,663,000

Long Term Investments

$1,950,000

$2,311,000

$2,689,000

Fixed Assets

$16,591,000

$16,317,000

$17,244,000


Goodwill

$14,430,000

$14,177,000

$14,965,000

Intangible Assets

$13,433,000

$13,081,000

$14,088,000

Other Assets

$636,000

$750,000

$860,000

Deferred Asset Charges

$0

$0

$0

Total Assets

$74,129,000

$69,667,000

$70,509,000

Current Liabilities

Accounts Payable

$14,243,000

$13,507,000

$13,016,000

Short-Term Debt/ Current Portion of Long-Term Debt

$6,892,000

$4,071,000

$5,076,000

Other Current Liabities

$0

$0

$0

Total Current Liabilities

$21,135,000

$17,578,000

$18,092,000

Long-Term Debt

$30,053,000

$29,213,000

$23,821,000

Other Liabilities

$6,669,000

$5,887,000

$5,744,000

Deferred Liabilites Charges

$5,073,000

$4,959,000

$5,304,000

Misc. Stocks

($151,000)

($145,000)

($140,000)

Minority Interest

$104,000

$107,000

$110,000

Total Liabilities

$62,883,000

$57,599,000

$52,931,000

Stockholders Equity

Common Stocks

$24,000

$24,000

$25,000

Capital Surplus

$4,091,000

$4,076,000

$4,115,000

Retained Earnings

$52,518,000

$50,472,000

$49,092,000

Treasury Stock

($31,468,000)

($29,185,000)

($24,985,000)

Other Equity

($13,919,000)

($13,319,000)

($10,669,000)

Total Equity

$11,246,000

$12,068,000

$17,578,000

Total Liabilities and Equity

$74,129,000

$69,667,000

$70,509,000

Explanation / Answer

In the given case the inventory amount gradually reducing year by year. It shows that the investment in inventory is decreasing. It is better indicator for performance of the company. Decreasing in inventory mean there is increasing in sales or better inventory management in the company. So the decreasing in inventory leads to reduction of various costs let me carrying costs and abnormal loss of goods.

In any industry decreasing n inventory leads to decrease in operating cycle period.

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