Consolidated Balance Sheet

(in millions)
PepsiCo, Inc. and Subsidiaries
December 26, 1998 and December 27, 1997

			1998		.	1997
ASSETS			.
Current Assets			.
Cash and cash equivalents			$	311	.	$	1,928
Short-term investments at cost			83		.	955
			394		.	2,883
Accounts and notes receivable, less allowance: $127 in 1998 and $125 in 1997			2,453		.	2,150
Inventories			1,016		.	732
Prepaid expenses, deferred income taxes and other current assets			499		.	486
	Total Current Assets		4,362		.	6,251
Property, Plant and Equipment, net			7,318		.	6,261
Intangible Assets, net			8,996		.	5,855
Investments in Unconsolidated Affiliates			1,396		.	1,201
Other Assets			588		.	533
		Total Assets	$	22,660	.	$	20,101
			.
LIABILITIES AND SHAREHOLDERS' EQUITY			.
Current Liabilities			.
Short-term borrowings			$	3,921	.	$	-
Accounts payable and other current liabilities			3,870		.	3,617
Income taxes payable			123		.	640
	Total Current Liabilities		7,914		.	4,257
Long-Term Debt			4,028		.	4,946
Other Liabilities			2,314		.	2,265
Deferred Income Taxes			2,003		.	1,697
Shareholders' Equity			.
Capital stock, par value 1 2/3¢ per share: authorized 3,600 shares, issued 1,726 shares			29		.	29
Capital in excess of par value			1,166		.	1,314
Retained earnings			12,800		.	11,567
Accumulated other comprehensive loss			(1,059		)	(988		)
			12,936		.	11,922
Less: Treasury stock, at cost: 255 shares and 224 shares in 1998 and 1997, respectively			(6,535		)	(4,986		)
	Total Shareholders' Equity		6,401		.	6,936
		Total Liabilities and Shareholders' Equity	$	22,660	.	$	20,101
See accompanying Notes to Consolidated Financial Statements.