Annual report pepsico 2014

Create a 10- to 12-slide presentation that addresses each question within the Comparative Analysis Case, pp. 824-825.

The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D , respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Stock price data can be found in the company's annual 10K, filed at the SEC.

Instructions

Use the companies' financial information to answer the following questions.

(a)What is the par or stated value of Coca-Cola's and PepsiCo's common or capital stock?

(b)What percentage of authorized shares was issued by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?

(c)How many shares are held as treasury stock by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?

(d)How many Coca-Cola common shares are outstanding at December 31, 2014? How many PepsiCo shares of capital stock are outstanding at December 31, 2014?

(e)What amounts of cash dividends per share were declared by Coca-Cola and PepsiCo in 2014? What were the dollar amount effects of the cash dividends on each company's stockholders' equity?

(f)What are Coca-Cola's and PepsiCo's return on common/capital stockholders' equity for 2014 and 2013? Which company gets the higher return on the equity of its shareholders?

(g)What are Coca-Cola's and PepsiCo's payout ratios for 2014?

(h)What was the market price range (high/low) for Coca-Cola's common stock and PepsiCo's capital stock during the fourth quarter of 2014? Which company's (Coca-Cola's or PepsiCo's) stock price increased more (%) during 2014?

Appendice C

The Coca-Cola Company is the world's largest beverage company. It owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages, but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now available in more than 200 countries. To access Coca-Cola's complete annual report, including notes to the financial statements, follow these steps:

1. Go to http://www.coca-colacompany.com/investors/ .

2. Select Financial Reports and Information and then click on 2014 Annual Report on Form 10-K.

3. The Notes to Consolidated Financial Statements begin on page 78.

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

Year Ended December 31,

2014 

2013

2012

(In millions except per share data)

NET OPERATING REVENUES

$ 45,998 

$ 46,854

$ 48,017

Cost of goods sold

17,889 

18,421

19,053

GROSS PROFIT

28,109 

28,433

28,964

Selling, general and administrative expenses

17,218 

17,310

17,738

Other operating charges

1,183 

895

447

OPERATING INCOME

9,708 

10,228

10,779

Interest income

594 

534

471

Interest expense

483 

463

397

Equity income (loss) — net

769 

602

819

Other income (loss) — net

(1,263)

576

137

INCOME BEFORE INCOME TAXES

9,325 

11,477

11,809

Income taxes

2,201 

2,851

2,723

CONSOLIDATED NET INCOME

7,124 

8,626

9,086

Less: Net income attributable to noncontrolling interests

26 

42

67

NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

$  7,098 

$  8,584

$  9,019

BASIC NET INCOME PER SHARE 1

$   1.62 

$   1.94

$   2.00

DILUTED NET INCOME PER SHARE 1

$   1.60 

$   1.90

$   1.97

AVERAGE SHARES OUTSTANDING

4,387 

4,434

4,504

Effect of dilutive securities

63 

75

80

AVERAGE SHARES OUTSTANDING ASSUMING DILUTION

4,450 

4,509

4,584

1Calculated based on net income attributable to shareowners of The Coca-Cola Company.

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year Ended December 31,

2014 

2013 

2012 

(In millions)

CONSOLIDATED NET INCOME

$ 7,124 

$ 8,626 

$ 9,086 

Other comprehensive income:

Net foreign currency translation adjustment

(2,382)

(1,187)

(182)

Net gain (loss) on derivatives

357 

151 

99 

Net unrealized gain (loss) on available-for-sale securities

714 

(80)

178 

Net change in pension and other benefit liabilities

(1,039)

1,066 

(668)

TOTAL COMPREHENSIVE INCOME

4,774 

8,576 

8,513 

Less: Comprehensive income (loss) attributable to noncontrolling interests

21 

39 

105 

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

$ 4,753 

$ 8,537 

$ 8,408 

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

December 31,

2014 

2013 

(In millions except par value)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$  8,958 

$ 10,414 

Short-term investments

9,052 

6,707 

TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

18,010 

17,121 

Marketable securities

3,665 

3,147 

Trade accounts receivable, less allowances of $331 and $61, respectively

4,466 

4,873 

Inventories

3,100 

3,277 

Prepaid expenses and other assets

3,066 

2,886 

Assets held for sale

679 

— 

TOTAL CURRENT ASSETS

32,986 

31,304