Investment analysis question:
25. PepsiCo’s balance sheet lists its deferred in- come taxes as$1,367 million in 2000 and $1,496 million in 2001. Its net incomestatement further listed income tax payments of $1,367 million in2001. How much did PepsiCo actually pay in income taxes in 200?
Expert Answer
Here its given that Deferred Tax amount in 2000 was 1367million
And in 2001 it was 1496 million.
So increase in deferred tax in 2001 = 1496 – 1367 = 129million
Income tax payment in 2001 = 1367 million
So, Net income tax payment in 2001 = 1367 – 129 = 1238million.