Coca-Cola Reported Net Sales Revenues of $18

question 36

Multiple Choice

Coca-Cola reported net sales revenues of $18.8 billion and cost of goods sold of $5.6 billion while PepsiCo reported revenues of $22.3 billion and cost of goods sold of $9.3 billion.Which of the following statements is correct?

• A)While PepsiCo generated more revenues than Coca-Cola,PepsiCo generated a lower gross profit percentage.
• B)Coca-Cola generated a lower gross profit percentage because their sales revenue was lower.
• C)PepsiCo did a better job of controlling product costs as a percentage of sales than did Coca-Cola as shown by their $13.0 billion gross profit.
• D)None of the answers are acceptable.

---

Definitions:

Uncertain Debt

A debt whose existence or amount is not clear or determined.

Composition Agreement

An arrangement where creditors agree to accept a partial payment from a debtor in full satisfaction of their claims.

UCC

The Uniform Commercial Code represents an all-encompassing series of legal directives that control all forms of commercial transactions within the U.S.

Contractual Duties

Obligations that parties are legally bound to perform as specified in a contract.