Compute working capital and the current ratio for both

Assignment Help Accounting Basics

Reference no: EM13586283

The current items, listed in alphabetical order, are taken from the consolidated balance sheets of Coca-Cola as of December 31, 2011, and PepsiCo as of December 25, 2011. (All amounts are in millions of dollars.)

Coca-Cola
Accounts payable and accrued expenses	$6,205
Accrued income taxes	252
Cash and cash equivalents	4,701
Current maturities of long-term debt	465
Inventories	2,187
Loans and notes payable	6,876
Marketable securities	278
Prepaid expenses and other assets	1,920
Trade accounts receivable, less allowance of $51	3,090

PepsiCo
Accounts and notes receivable, net	$ 4,683
Accounts payable and other current liabilities	8,273
Cash and cash equivalents	2,064
Income taxes payable	145
Inventories	2,522
Prepaid expenses and other current assets	1,324
Short-term investments	4,683
Short-term obligations	369

Required:

1. Compute working capital and the current ratio for both companies. Enter working capital amounts in millions of dollars. Round current ratio to two decimal places. If required, use the minus sign to indicate negative working capital.

Item	Coca-Cola		PepsiCo
Working capital	$		$
Current ratio		:1		:1

Reference no: EM13586283

Questions Cloud

Discuss a punishment goal of the criminal law system in : discuss a punishment goal of the criminal law system in relation to the business world. is this punishment goal met?

What is the difference between mitosis and meiosis where : 1. rewrite the following so that they read from left to right in increasing order of organisation. tissue macromolecule

Explain the accounting equation and prepare a table : explain the accounting equation and prepare a table showing the equation and show a list of accounts belonging to each

Image text transcribed for accessibility which of the : which of the following presents a summary of changes in a firms balance sheet from the beginning of an accounting

Compute working capital and the current ratio for both : the current items listed in alphabetical order are taken from the consolidated balance sheets of coca-cola as of

Explain with appropriate illustriation the concept of : explain with appropriate illustriation the concept of resonance stabilization of

What total monthly sales revenue is required to earn a : malibu corporation has monthly fixed costs of 64000. it sells two products for which it has provided the following

If an institution concludes that an individual loan : if an institution concludes that an individual loan specifically identified for evaluation is not impaired under fas

Rhonda can transfer property that selecthashas notcorrect 1 : rhonda owns 50 of the stock of peach corporation. she and the other 50 shareholder rachel have decided that additional

User Account

All Pages