Question

What type of format does Pepsico use for their balance sheet (classified or not)? Why do...

What type of format does Pepsico use for their balance sheet (classified or not)? Why do you think PepsiCo selected the format they did for their balance sheet? Overall, what does PepsiCo's balance sheet say about the financial standing of the company? Are there any other sections of the balance sheet that you would be concerned with if you were an investor? What are they and why? How do you think this information could be useful for investors, financial statement users and the public?

Homework Answers

Answer #1

Pepsico used common size format of Balance Sheet.

Pepsico selected the said format for their Balance Sheet to show the percentage values of current and previous years financial elements.

Pepsico is a highly levered company, since its debt exceeds equity.

It has high cash coverages, means inspite of having large debt it utilises the debts efficiently to cover its cash.

As an investor, the footnotes must reflect any legal proceeding initiated againt the entity, what are the other projects that the entity believes to start.

The said information helps in analysing the profitability and going concern of the entity.

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