Evaluate the performance of these affiliates

Assignment Help Finance Basics

Reference no: EM131410867

PepsiCo, Inc. reported "bottling equity income" of $374, $560, and $553 on its income statements for 2008, 2007, and 2006, respectively (dollars in millions). The computation of net cash from operating activities on the company's statement of cash flows includes "bottling equity income, net of dividends" of ($202), ($441), and ($442) for the same three years.

REQUIRED:

a. Provide the entry made by PepsiCo to record affiliate net income in 2008.

b. Why is there a reference to bottling equity income on the statement of cash flows?

c. How many cash dividends did PepsiCo receive from its bottling affiliates during 2008, 2007, and 2006?

d. Discuss how PepsiCo management might evaluate the performance of these affiliates.

Reference no: EM131410867

Questions Cloud

Describe an example of a television program : Analyze the deviance, using terms such as primary deviance, secondary deviance, retrospective labeling, and stigma and Apply Durkheim's four functions of deviance to the deviant actions in the television program. What purpose(s) does the deviance p..

Calculate the viscosity of a fluid : Calculate the viscosity of a fluid that would allow a pressure drop of 35 kPa over a 5 mlength of 0.75-in. stainless steel sanitary pipe if the fluid is flowing at 0.12 m3/h and has adensity of 1010 kg/m3. Assume laminar flow.

Discuss the impact and downfalls of a leader : Discuss the impact and downfalls of a leader that has no integrity. Provide examples of some leaders that that have had a negative impact on organizations.What actions can a leader of no integrity take to overcome this negative stigma?

Analyze your organization in its present form : Analyze your organization in its present form. Explain your organization's structure, workforce diversity, market/customer diversity, and communications technology.

Evaluate the performance of these affiliates : How many cash dividends did PepsiCo receive from its bottling affiliates during 2008, 2007, and 2006?

Connection of two capacitors of capacitances : A potential difference of 300 V is applied to a series connection of two capacitors of capacitances C1=2.00 microfarad and C2=8.00 microfarad. Suppose that the charged capacitors are then disconnected from each other and from the battery. They are ..

What swap ratio would you recommend : How does this cash payment affect the value of ACL's stock? Is the swap ratio of 10 shares of ACL for 74 shares of HIPL justified? What swap ratio would you recommend?

Formulate an argument for investment diversification : Analyze the relationship between risk and rate of return, and suggest how you would formulate a portfolio that will minimize risk and maximize rate of return - Formulate an argument for investment diversification in an investor portfolio.

What does it mean for a company to thin its inventories : What does it mean for a company to "thin" its inventories? How would such a business practice aid a company during an economic recession?

User Account

All Pages