Pepsi Essay

1189 Words 5 Pages
Financial Reporting Problem Part 1
Team

Financial reporting Problem, Part 1
The company’s annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the accounts, such as the balance sheet, the income statement, and the cash flow statement. The information presented in the annual report would also be essential to potential investor, employee, and any other people that may have interest in financial aspect of the business.
The company’s total assets at the end of 2009 were $39,848,000 (PepsiCo, n.d.). However, in 2010 it’s most recent annual report shows an increase to the
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Accounts payable is the money in which a company owes vendors for products and services purchased on credit. In reviewing the most recent financial statement for PepsiCo the have a total amount of $10,923,000 owed to vendors (Yahoo Finance, 2011). This is one of the largest current liabilities because of the fact the companies are constantly ordering new products or paying vendors for services or merchandise.
As shown on PepsiCo’s balance sheet, the company recorded $8,292,000 in their accounts payable for their previous annual reporting period, 2009 (Yahoo Finance, 2011). This says that PepsiCo purchased $8,292,000 in supplies, products, and services on credit. They were liable to pay this amount to their vendors and suppliers at the time they were due.
Net revenues are proceeds from a sale of an asset, minus the commissions, taxes, and other expenses related to the sale. For example, a case a Pepsi was sold in a store. The net revenue made from that sale, what money is left after the expenses, commissions, and taxes are paid. Another example of net revenue would be the profit made from the sale of a truck, land, or building that PepsiCo owned. PepsiCo reported $31,263,000 in net revenues for 2010 (Yahoo Finance, 2011). This is an increase of $8,130,000 from the reported net revenues of $23,133,000 in 2009. In 2008 however, PepsiCo reported $22,900,000 in net revenues (Yahoo

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