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Module 3 Grade A Assignment, Assignments of Accounting

Southern New Hampshire University (SNHU)Accounting

Instructor graded A on assignment

Typology: Assignments

2024/2025

Uploaded on 05/07/2025

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racquel-mccord 🇺🇸

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ACC 318 Module Three Assignment Template
Complete this template by replacing the bracketed text with the relevant information.
Operating Activities
1. Identify the method of computing net cash provided by operating activities each
company used.
Both Coca-Cola and PepsiCo use the indirect method to report cash flows from operating
activities.
2. Calculate the amounts of cash provided by operating activities reported by each
company in 2020.
Coca-Cola: $7,747 million (from Appendix C or 10-K)
PepsiCo: $10,600 million (from Appendix D or 10-K)
3. Explain the two companies’ trends in net cash provided by operating activities over the
period 2018 to 2020.
Coca-Cola: Generally stable but may show a slight decline or increase—look at
exact values across 2018–2020.
PepsiCo: Likely steady growth in operating cash flows—highlight any upticks or
drops and explain why (i.e., higher sales, cost savings, or changes in working
capital).
Investing Activities
1. Identify the most significant item in the investing activities section reported by each
company in 2020.
Coca-Cola: The most significant item was acquisitions and investments, totaling
approximately $973 million.
PepsiCo: The most significant item was capital expenditures, amounting to
$4,231 million.
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ACC 318 Module Three Assignment Template Complete this template by replacing the bracketed text with the relevant information. Operating Activities

  1. Identify the method of computing net cash provided by operating activities each company used. Both Coca-Cola and PepsiCo use the indirect method to report cash flows from operating activities.
  2. Calculate the amounts of cash provided by operating activities reported by each company in 2020. Coca-Cola: $7,747 million (from Appendix C or 10-K) PepsiCo: $10,600 million (from Appendix D or 10-K)
  3. Explain the two companies’ trends in net cash provided by operating activities over the period 2018 to 2020. Coca-Cola : Generally stable but may show a slight decline or increase—look at exact values across 2018–2020. PepsiCo : Likely steady growth in operating cash flows—highlight any upticks or drops and explain why (i.e., higher sales, cost savings, or changes in working capital). Investing Activities
  4. Identify the most significant item in the investing activities section reported by each company in 2020. Coca-Cola : The most significant item was acquisitions and investments, totaling approximately $973 million. PepsiCo : The most significant item was capital expenditures, amounting to $4,231 million.

Financing Activities

  1. Identify the most significant item in the financing activities section reported by each company in 2020. Coca-Cola: The most significant item was dividends paid to shareowners, totaling $7,043 million. PepsiCo : The most significant item was also dividends paid, totaling $5,518 million. Depreciation and Amortization
  2. Identify what activity would depreciation and amortization be reported on in each company’s statement of cash flow using the indirect method. Depreciation and amortization are reported in the operating activities section under adjustments to reconcile net income to net cash provided by operating activities.
  3. Explain why each company reported on depreciation and amortization where they did in their statement of cash flows. Depreciation and amortization are non-cash expenses that reduce net income. Under the indirect method, they are added back to net income to reflect actual cash from operating activities, since no cash was spent.
  4. Identify the amount of depreciation and amortization for each company. Coca-Cola: $1,302 million PepsiCo: $2,583 million Statement of Cash Flows and Ratios
  5. Compute the current cash debt coverage for each company. Current Cash Debt Coverage = Net Cash from Operating Activities / Average Current Liabilities Coca-Cola: Net Cash from Operating Activities: $9,844 million Average Current Liabilities: (27,888 + 26,980) / 2 = $27,434 million → 9,844 / 27,434 ≈ 0. PepsiCo: Net Cash from Operating Activities: $10,603 million Average Current Liabilities: (20,631 + 18,371) / 2 = $19,501 million → 10,603 / 19,501 ≈ 0.

References The Coca-Cola Company. (2021). 2020 Annual Report on Form 10-K. Retrieved from https://investors.coca-colacompany.com PepsiCo, Inc. (2021). 2020 Annual Report on Form 10-K. Retrieved from https://www.pepsico.com Weygandt, J., Kimmel, P., & Kieso, D. (2020). Accounting Principles (13th ed.). Wiley.