AB 116 WEEK 4 DISCUSSION

AB 116 WEEK 4 Current Liabilities  Comparative Analysis Problem: PepsiCo, Inc. versus The Coca-Cola Company
This week- Discussion topic comes from BYP11-2, p. 561 of your textbook. PepsiCo, Inc. and Coca-Cola Company financial statements are in Appendix C. Use their financials to answer the following questions:
 
(a) At December 31, 2011, what was PepsiCo- largest current liability account? What were its total current liabilities? At December 31, 2011, what was Coca Cola- largest current liability account? What were its total current liabilities?
 
(b) Based on information contained in those financial statements, compute the following 2011 values for each company:
   (1) Working Capital
   (2) Current Ratio
 
(c) What conclusions concerning the relative liquidity of these companies can be drawn from these data?