Coca-Cola’s net operating revenues for 2011 were $46,542 million comprised primarily of beverage sales. Pepsi’s net revenues for 2011 were $66,504 million, of which soft drinks are estimated at $22,418 million for PepsiCo Americas Beverage and food and beverage sales of $14,560 million for Europe and $7,392 million for AMEA. C. Coca-Cola’s inventories which consist primarily of raw materials and packaging, and finished goods and finished beverages are valued at the lower of cost or market. The cost is determined on the basis of the average cost or first-in, first-out methods. In the first quarter of 2011 Quaker Foods North America changed its method of accounting for certain inventories from the last-in, first-out method to the average cost method.
The Coca-Cola Company versus PepsiCo, Inc. Acc 305 November 17, 2011 1. Compare the pension plans of Coca-Cola and PepsiCo, including type of plan and the funded status at 2007 year-end. Each company has a lucrative pension plan. The Coca-Cola Company uses a combination of defined benefits and contributions. The benefits are determined by years of service or by a combination of years of service and earnings.
Comparative Analysis Case Coca-Cola Company and PepsiCo, Inc. By Intermediate Accounting, fall 2013 Instructor: Chapter2 (a) What are the primary lines of business of these two companies as shown in their notes to the financial statements? (b) Which company has the dominant position in beverage sales? (c) How are inventories for these two companies valued? What cost allocation method is used to report inventory? How does their accounting for inventories affect comparability between the two companies?
WHY the performance deteriorated:- [pic] • Coors spend on advertisement was lowest (2.56% of sales) in 1977 but its spend was highest (15% of sales) in 1985. • Excess spend on advertisement did not result in sales increase for Coors. [pic] • Sales and administration for Coors increased but were at par with key competitor, although one of its key competitor reduced SAD by 31% while Coors SAD expenses increased by 22%. We can see from the above graphs that Coors did not perform very well as compared to its competitors during 1977 to 1985 in USA beer market. By doing value activity analysis for Coors bear manufacturing following conclusion were drawn • Coors canned 69% of its beer against an industry average of 57% in 1985.
When looking at cash available to pay the company current debts, it is safe to say that Walmart is not in good shape. Q2: Is the company increasing or decreasing its investment in its operations? Ans2: Total asset minus total current assets equal non-current. Non-current assets 2006 = 138,187 – 43,824 = 94,363 million Non-current assets 2005 = 120,154 – 38,854 = 81,300 million Difference between non-current assets from 2006 to 2005:$13,063 million. Net used in investing activities 2006: ($14,183) million When comparing the $13,063 million to the ($14,183) million, it appears that there is an increase in Wal-Mart’s investments in its operations.
The adjustments for 2010, 3rd quarter earnings will reduce to $98 million, down from $101.5 million, and 4th quarter will be reduced to $43 million from $114.2 million (Savitz, 2011). AMSC also stated that cash and equivalents were at $240 million quarter end, down from $260.5 million on quarter earlier (Savitz, 2011). Sinovel has no intentions of paying AMSC. This is AMSC biggest client because this client contributes to 80% of its revenues. Not good news for investors or anyone with interest in
By this standard alone, La Paloma looks to fit right into the majority of all eating and drinking establishments. La Paloma was formed as an S-Corporation; therefore, the tax liabilities are not included, nor were the sole stockholders’ personal tax information taken into consideration when completing this financial analysis. Revenue is solid and continues to grow. From 2010 to 2011, sales and net profit have increased over 80%, while cost of goods sold increased 87%. A complete financial analysis of La Paloma reveals a different picture than one of growth and strength, especially in the area of inventory costs, inventory turnover, and collection periods.
Corporate Financial Policy – case assignment “Pyramid Electronics” 1. How much is the option compensation package of 15,000 options worth for a mid-level manager (assuming current stock price of $21, strike price of $24 and time to maturity of 5 years)? Annual risk-free rate can be taken from Exhibit 6 for 5yr period and is equal to 0.81%. The only missing variable to calculate the value of stock options using B-S model is the volatility. Since we do not have the data for historical volatility and estimating an average from the graph would not be particularly reliable, we can use the long-term (2+ year) call option prices provided in Exhibit 5 to reverse-engineer the volatility.