Running Head: EVALUATION OF CORPORATE PERFORMANCE 1 EVALUATION OF CORPORATE PERFORMANCE 2 Evaluation of Corporate Performance Pro-forma Financial Statements of PepsiCo: The pro forma income statement and balance sheet of PepsiCo incorporation areas under (annual report, 2012): PEPSICO INCORPORATION Pro-forma Income Statement 20132014 ($000) ($000) Revenues Gross sales (10%) 72,041 82,041 Less: Cost Of Sales (10%)34,42044,420 Gross Profit (profit/loss) 37,62147,621 Operating expenses Selling, General and Administrative 24,970 34,970 Amortization of intangible assets 119 219 Operating profit 12,532 22,532 Bottling equity income Interest expense (899) (999) Interest income and other 91 101 Income before income taxes 11,724 21,724 Provision for income tax 2,090 3,090 Net income 9,634 10,634 Less: income attributable to non controlling interest 36 46 Net income attributable to PepsiCo 9,598 10,598 Net income attributable to PepsiCo as per common share-holders: Basic 3.96 3.99 Diluted 3.92 3.95 Weighted average common share outstanding Basic 1,557 1,558 Diluted 1,575 1,675 Cash dividend declared per common share 2.12752.2276 PEPSICO INCORPORATION PRO-FORMA BALANCE SHEET 20132014 ($000) ($000) ASSETS Current Assets Cash 6,279 7,279 Net Account Receivables 7,041 8,041 Inventory 3,581 4,581 Temporary Investment 322 422 Prepaid Expenses 1,4782,478 Total Current Assets 18,72019,441 Fixed Assets Long Term Investments 19,136 20,136 Property, Plant &Equipment (Net) 1,781 2,781 Good will 16,971 17,971 Non-amortizable Intangible Assets 31,175 32,175 Investments in Non controlled Affiliates 1,633 2,633 Amortizable Intangible Assets, net 1,718 2,718 Total Fixed Assets 37,888 38,888 TOTAL ASSETS 72,414 82,414 LIABILITIES Current Liabilities Accounts Payable 10,196 11,196 Short Term Notes 4,815 5,815 Income taxes payable 317 417 Total Current Liabilities 15,328 16,328 SHAREHOLDERS’ EQUITY Capital Stock 22,417 32,417 Retained Earnings 34,66944,669 Total Shareholders’ equity 65,57575,575 Total Liabilities &Equity 72,41482,414 These are the pro forma income statement and balance sheet of PepsiCo Incorporation as per the data taken from annual report 2012 of the corporation. Ratio Analysis of PepsiCo: The ratio analysis of PepsiCo incorporation as per the company financial statements reported in 2012 areas under (Annual Report, 2012): A. LIQUIDITY .