PepsiCo income statement

Refer to PepsiCo balance sheet (Table 4.2) and PepsiCo income statement (Table 4.3) as the financial ratio calculations are explained. 

Table 2.2 Income Statement PepsiCo (Data Obtained from SEC.gov)...

Starting from the top of the income statement and working down, gross profit refers to the place within the income statement where COGS reduce revenues. Gross profit is an important number because if the company cannot earn enough from a product line to cover its direct costs, it will not be able to remain in business. Notice PepsiCo uses COS instead of COGS (Table 4.3). This, too, is a matter of preference. 

As an example of dividends being paid out to preferred stockholders first, see the income statement, Table 4.3, Note 1 PepsiCo s dividends paid to preferred stockholders and redemption premium totaled 8M period ending 2013. 6,740 - 8 = 6,732. Thus, 6,732 is net income available to common stockholders. 

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