Question: Comparative Analysis Case
The Coca-Cola Company and PepsiCo, Inc.
Instructions: Go to the book's companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc.
(a) What are the amounts of Coca-Cola's and PepsiCo's provision for income taxes for the year 2011? Of each company's 2011 provision for income taxes, what portion is current expense and what portion is deferred expense?
(b) What amount of cash was paid in 2011 for income taxes by Coca-Cola and by PepsiCo?
(c) What was the U.S. federal statutory tax rate in 2011? What was the effective tax rate in 2011 for Coca-Cola and PepsiCo? Why might their effective tax rates differ?
(d) For year-end 2011, what amounts were reported by Coca-Cola and PepsiCo as (1) gross deferred tax assets and (2) gross deferred tax liabilities?
(e) Do either Coca-Cola or PepsiCo disclose any net operating loss carrybacks and/or carryforwards at year-end 2011? What are the amounts, and when do the carryforwards expire?