This week’s Discussion topic comes from CT 11.2 in your textbook. PepsiCo, Inc. financial statements are in Appendix C, and Coca-Cola Company financial statements are in Appendix C. Use their financials to answer the following questions:
(a) At December 26, 2015, what was PepsiCo’s largest current liability account? What were its total current liabilities? At December 31, 2015, what was Coca-Cola’s largest current liability account? What were its total current liabilities?
(b) Based on information contained in those financial statements, compute the following 2015 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?
