The gross replacement rate: 7. measures a worker’s monthly retirement benefit divided by monthly earnings before taxes in the year prior to retirement. 8. measures a worker’s monthly retirement benefit divided by monthly earnings after taxes in the year prior to retirement. 9. is an increasing function of gross monthly earnings prior to retirement. 10. is independent of gross monthly earnings prior to retirement. 11.
The information provided in this paper was taken from both Coco-Cola and PepsiCo Consolidated Financial Statements to present the analyses performed by utilizing three revenue statement analyses tools: The Vertical Analyses, Horizontal Analysis, and Ratios Analyses. I will also provide some recommendations on how Coco-Cola and Pepsi could improve their financial status. Those who are considering investing in both PepsiCo and Coco-Cola will need to look at while giving consideration to a large amount of information before making any decision on which of the companies would be a healthier investment. For example most investors should review for each business their current assets and their current liabilities amounts. Coca-Cola 2004 financial report revealed more than $12,281 million dollars in current assets and according to PepsiCo financial report for the same year it revealed just $8,639 million dollars in their current assets.
In 2005, the equity PepsiCo, Inc. was $20,638 and the Coca- Cola Company, $16,355, total assets grew in PepsiCo, Inc. and the Coca-Cola Company. PepsiCo, Inc. rose in equity by 11.90% and Coca-Cola Company was 2.64%. In the end, after reviewing and analyzing PepsiCo, Inc., and the Coca-Cola Company, I found that the profit for PepsiCo, Inc., and Coca-Cola Company declined in 2005 and in 2004 there was success. Operating costs by PepsiCo,
For example, in 1983 employees were allowed to contribute up to $30,000 pre-tax income including employer matches (401(k) Plans: A 25 Year Retrospective). In 1986 Congress passed the Tax Reform Act, which significantly reduced the contribution limits for employees to $7,000 (401(k) Plans: A 25 Year Retrospective). In 2010 the current contribution limit is $16,500 or $22,000 if age 50 or older (Sahadi). The way employees can contribute is by automatic deductions from their payroll (Guy). The benefits of automatic deductions is the employee does not need to worry about how much to deduct from each paycheck and not have to figure out how much money was pre-tax money when they file their taxes (Guy).
Hall O’ Fame Products is a nationwide sporting goods manufacturer. The company operates with a widely based manufacturing and distribution system that has led to a highly decentralized management structure. Each division manager is responsible for producing and distributing corporate products in one of eight geographical areas of the country. Division managers are evaluated using a performance measure that is calculated as the division’s contribution to corporate profits before taxes less a 20 percent investment charge on the division’s investment base. The investment base of each division is the sum of its year-end balances of accounts receivable, inventories, and net plant fixed assets (cost less accumulated depreciation).
(1998). Federal Payroll Tax Withholding Aspects of Employee Benefits. Benefits Quarterly, 14(1), 79. Boortz, N., & Linder, J. (2005).
(The Coca-Cola Company, 2008.) The pensions plan for the Pepsi Co is based on the willingness of the individual. It benefits full-time employees and some international employees. The key consideration is either the years of service and in other cases the combination of this and the size of earning (PepsiCo, Inc., 2008, p.43). This is also a key consideration by Coca-Cola.
Once the predicted demand is frozen, L.L. Bean uses its historical demand and forecast data to analyze the forecasting errors. The forecast errors are calculated for each individual item and a frequency distribution of these is made, which is further used as a probability distribution for future errors. Thus, if 50% of the errors were within 0.7 and 1.6, the forecast for this year would be adjusted accordingly. Next, each item commitment quantity was calculated using its contribution margin and its total contribution in dollar to the revenue of the company.
Coca-Cola Vs. Pepsi August 25, 2013 Financial Accounting Page 1 Coca-Cola vs Pepsi Coca-Cola vs. PepsiCo When analyzing the financial statements of two industry leaders both in the soft drink industry. In the analysis of these two giants we can see a vertical analysis (also called common-size analysis) which is a technique that expresses each financial statement item as a percent of a base amount. When looking into each of these companies we will see how each of them have done in a three year plan. We look at how each of them stumbled a bit, but when taking a closer look at the overall aspect of the companies as a whole we will see how they did technically well and came out each year on top. Also analysis’s, base assets of total assets, for liabilities and stockholders’ equity.
– 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5. In analyzing financial statements, horizontal analysis is a- tool 6. Comparative balance sheets - are usually prepared for at least two years 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? – 50% = New - Old Old 100 8.