refer to the information presented in note 13 10 quot review problem 13 1 quot for p 1571807

Refer to the information presented in Note 13.10 “Review Problem 13.1″for PepsiCo, and perform the following requirements for 2010:

1. Calculate the current ratio, and briefly describe what it means for PepsiCo.

2. Calculate the quick ratio, and briefly describe what it means for PepsiCo.

3. Calculate the receivables turnover ratio and average collection period, and briefly describe what these measures mean for PepsiCo. Assume all sales are on account.

4. Calculate the inventory turnover ratio and average sale period, and briefly describe what these measures mean for PepsiCo

Review Problem 13.1:

The following income statements and balance sheets are for PepsiCo, Inc.We use this information in review problems throughout the chapter.

1. Prepare a trend analysis for PepsiCo‘s income statement using the format shown in Figure 13.1 “Income Statement Trend Analysis for “.

2. Prepare a trend analysis for PepsiCo’s balance sheet using the format shown in Figure 13.2 “Balance Sheet Trend Analysis for “.

3. Compare PepsiCo’s increase in net income from 2009 to 2010 to Coca-Cola’s increase shown in Figure 13.1 “Income Statement Trend Analysis for “. Which company has the highest percentage growth in net income?

4. Compare PepsiCo’s increase in total assets from 2009 to 2010 to Coca-Cola’s increase shown in Figure 13.2 “Balance Sheet Trend Analysis for “. Which company has the highest percentage growth in total assets?