Question

Comparative Analysis Problem: PepsiCo, Inc. vs. The Coca-Cola Company

CT2-2.  

PepsiCo's financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.

Instructions

(a)  Based on the information contained in the financial statements, determine the normal balance of the listed accounts for each company.

PepsiCo	Coca-Cola
1. Inventory	1. Accounts Receivable
2. Property, Plant, and Equipment	2. Cash and Cash Equivalents
3. Accounts Payable	3. Cost of Goods Sold (expense)
4. Interest Expense	4. Sales (revenue)

(b)  Identify the other account ordinarily involved when:

• 1.Accounts Receivable is increased.
• 2.Salaries and Wages Payable is decreased.
• 3.Property, Plant, and Equipment is increased.
• 4.Interest Expense is increased.

Answer 1