Answer
The Coca-Cola Company has a working capital of 1,123,000,000 (12,094,000,000 – 10,971,000,000); PepsiCo, Inc. has a working capital of 1,877,000,000 (8,639,000,000 – 6,752,000,000).
Work Step by Step
The Coca-Cola Company indicates in its analysis section and management discussion that its strong capital position and global presence enable it to easily access prime financial markets around the globe, enabling it to raise cash with a very low effective cost. This bearing, coupled with dynamic management, results in a very low overall cost of borrowing. Thus, its debt management policies, in combination with its investment activity and share repurchase program, can result in current liabilities being greater than the current assets. PepsiCo also has a similar strategy.
