Accounting Intermediate Ch 3 Hw

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Carolyn Gaudioso
8-29-12
Intermediate Accounting Homework 1

CAC: a) Coca cola b) Coca cola- 34% Pepsi-32% c) Pepsi co had more depreciation and amortization expense, there is a difference in these amounts because coca cola had a higher percentage increase from 2008 to 2009 and also a greater 5 year average growth rate which shows that coca cola is a more popular company and there is a reduction in a capital account of the value of an asset over time. Also their equipment that they use can depreciate faster than coca-cola’s equipment.

FSAC: a) Percentage change in sales from 2008- 2007 is 9% increase and from 2008-2009 is decreased 2%. The percentage change in operating profits from 2007 to 2008 is 4% and from 2008-2009 it is 2%. The change in net cash flow less capital expenditures from 2007-2008 is decreased 2% and from 2008-2009 is 57%. b) The trend that seems to be more favorable is the sales and the trend that seems less favorable is the net cash flow less capital expenditures. The significance of the trend being less favorable from net cash flow less capital expenditure is that is shows that the net cash flow in 2008 is less than the capital expenditure thus causing a decrease in 2008 which causes a decrease of 2%.
IFRS 3-6) a) April 2010-7,153. March 2009 -7,258.1 b) Cash in April 2010 -1,229. c) Selling and Marketing expense 2010-3,618.5. In 2009- 3,371.9 d) Revenues 2010-9,536.6. In 2009- 9062.1 e) Pg 102- Prepaid pension contributions, prepaid leasehold premiums, other prepayments and accrued income. And accrued interest f) 2010 Depreciation =394.2 Amortization =33.7. 2009 Depreciation=381.7 Amortization=…...

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