Accounting Financial Analysis and Report

Running head: ACCOUNTING FINANCIAL ANALYSIS AND REPORT
Accountancy
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING FINANCIAL ANALYSIS AND REPORT
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................2
Question 4........................................................................................................................................3
Question 5........................................................................................................................................3
Question 6........................................................................................................................................3
Reference.........................................................................................................................................5
Appendix..........................................................................................................................................6

2ACCOUNTING FINANCIAL ANALYSIS AND REPORT
Question 1
The PBG Gross Profit margin for the company in the year 2000 was around 44.8% and
was around 42.8% in the year 1999. The operating profit margin for the company was around
7.4% in the year 2000 and was around 5.5% in the year 1999. The change in the ratio was
computed for the company by adding up the depreciating expenses in the operating income of
the company. The change in the operating profit of the company was as such that the operating
profit margin of the company increased to around 7.6% in the year 2000 and 5.5% in the year
1999 (Appendix 1). The gross profit of the company would not change much with the change in
the depreciation amount of the company (Bragg 2017).
Question 2
The fraction of fixed assets depreciated in the year 2000 by the Pepsi Bottling Group Ltd
was around 53.2% in the year 2000 and the same was around 53.7% in the year 1999. The
fraction of the fixed asset depreciation at the same time if PBG had not changed the depreciation
policy then the same would the fraction would have been lower. The fraction of depreciation was
calculated by taking the book value of the depreciable assets divided by the amount of
depreciation expenses incurred by the company (Appendix 1). The fraction of depreciation in
contrast to the total assets of the company was around 53.2% in the year 2000 and was around
53.7% in the year 1999 (Del Giudice, Manganelli and De Paola 2016).
Question 3
The change in the depreciation policy will be affecting the fixed assets turnover ratio for
the company if the depreciation policy for the company changes. The fall in the depreciation
expenses for the company will ultimately increase the value of the fixed assets of the company