which company has reported the greater amount of future long term commitments for th 581510

PepsiCo’s financial statements are presented in Appendix A. Financial statements of The Coca Cola Company are presented in Appendix B.

Instructions

(a) Based on the information contained in these financial statements, compute the following 2009 ratios for each company.

(1) Debt to total assets.

(2) Times interest earned.

(b) What conclusions concerning the companies’ long run solvency can be drawn from these ratios?

(c) Which company has reported the greater amount of future long term commitments for the 5 succeeding years?