Investment Analysis Question 25 Pepsico S Balance Sheet Lists Deferred Come Taxes 1 367 Mi Q34214531

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.