Answers To Assignment 2 1 Essay
Be Sure to submit these assignments by 09/27/2014 on BlackBoard, under “Assignment-Week 2. Answers must be labeled properly, with all pertinent information. No late submissions will be accepted.
The Procter & Gamble Company (P&G)
The financial statements of P&G are Posted in BlackBoard, under “Handouts”
Refer to P&G's financial statements and the accompanying notes to answer the following questions.
What type of income statement format does P&G use? Indicate why this format might be used to present income statement information.
What are P&G's primary revenue sources?
Compute P&G's gross profit for each of the years 2009-2011. Explain why gross profit decreased in …show more content…
PepsiCo 2011 2010 2009
Cost of sales 31,593 26,575 20,099
Coca-Cola 2011 2010 2009
Cost of sales 18,216 12,693 11,088
As shown in the table above, however, Coca-Cola had greater growth in net income from 2009 to 2011. PepsiCo reported stronger growth in net sales over the three-year period. Both companies are doing well.
COMPARATIVE ANALYSIS CASE (Continued)
(c) Coca-Cola has reported gains on the equity transactions related to bottling operations. PepsiCo reported gains on its equity investments. PepsiCo provided the following disclosure for Items Affecting Comparability:
ITEMS AFFECTING COMPARABILITY
The year-over-year comparisons of our financial results are affected by the following items:
In 2011, we had an additional week of results (53rd week), Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. The 53rd week increased 2011