Question: Refer to the financial statements of PepsiCo,
Refer to the financial statements of PepsiCo, presented in Appendix A, and answer the following questions:
Financial statements of PepsiCo:
(a) What was the amount of net cash provided by operating activities for the year ended December 30, 2006? For the year ended December 31, 2005?
(b)What was the amount of increase or decrease in cash and cash equivalents for the year ended December 30 2006? For the year ended December 31, 2005?
(c) Which method of computing net cash provided by operating activities does PepsiCo use?
(d) From your analysis of the 2006 statement of cash flows, did the change in accounts and notes receivable require or provide cash? Did the change in inventories require or provide cash? Did the change in accounts payable and other current liabilities require or provide cash?
(e) What was the net outflow or inflow of cash from investing activities for the year ended December 30, 2006?
(f) What was the amount of interest paid in the year ended December 30, 2006? What was the amount of income taxes paid in the year ended December 30, 2006? (See Note 14.)
Note 14:
Transcribed Image Text:
PEPSICO Frito-Lay North America (FLNA) Pepsico Beverages North America (PBNA) PepsiCo International (PI) Quaker Foods North America (QFNA) Net Revenue Operating Profit 2006 2005 2004 2006 2005 2004 FLNA $10,844 $10,322 $ 9,560 $2,615 $2,529 $2,389 PBNA 9,565 9,146 8,313 2,055 1,948 2,037 1,911 PI 12,959 11,376 9,862 1,607 1,323 QFNA Total division 1,769 35,137 1,718 32,562 1,526 29,261 537 6,710 554 475 7,172 6,098 Corporate (733) 6,439 (788) (689) 5,409 35,137 32,562 29,261 5,922 Restructuring and impairment charges Total (150) $5,259 $35,137 $32,562 $29,261 $6,439 $5,922 2006 2005 2004 Accounts receivable $2,718 618 Trade receivables $3,147 Other receivables 642 3,789 3,336 Allowance, beginning of year Net amounts charged/(credited) to expense Deductions(a) Other(b) Allowance, end of year Net receivables Inventories() Raw materials 75 97 $105 (1) (22) 10 18 (27) 6 (25) (1) $ 97 64 75 $3,725 $3,261 $ 860 $ 738 Work-in-process Finished goods 140 112 926 843 $1,926 $1,693 2006 2005 2004 Other assets Non-current notes and accounts receivable $149 $ 186 Deferred marketplace spending Unallocated purchase price for recent acquisitions Pension plans 232 281 196 256 197 2,440 Other 206 240 $980 $3,403 Accounts payable and other current liabilities Accounts payable Accrued marketplace spending Accrued compensation and benefits Dividends payable Other current liabilities $2,102 $1,799 1,444 1,383 1,143 1,062 492 431 1,315 $6,496 1,296 $5,971 Other liabilities Reserves for income taxes $1,884 2,439 $4,323 $1,435 Other 3,189 $4,624 Other supplemental information Rent expense Interest paid Income taxes paid, net of refunds Acquisitions(a) Fair value of assets acquired Cash paid and debt issued SVE minority interest eliminated Liabilities assumed $228 $291 $215 $245 $137 $213 $2,155 $1,258 $1,833 $ 678 (522) $ 1,089 (1,096) $ 78 (64) 216 $ 209 S 156 $ 14
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