Calculate and compare the Pepsi and Coke based on the broader ratios. BALANCE SHEET Pepsi
Question:
Calculate and compare the Pepsi and Coke based on the broader ratios.
BALANCE SHEET | ||
Pepsi Coke | ||
Assets | 2019 | 2019 |
Cash | 7,282 | 9,000 |
Short term investment | 0 | 48,600 |
Acc. Receivable | 632,160 | 351,200 |
Inventories | 1,287,360 | 715,200 |
Total current assets | 1,926,802 | 1,124,000 |
Fixed Assets | ||
Plant & Equipment | 1,202,950 | 491,000 |
Less: Acc dep | 263,160 | 146,200 |
939,790 | 344,800 | |
Total assets | 2,866,592 | 1,468,800 |
Liabilities & Equities | ||
Current liability | ||
A/c Payable | 524,160 | 145,600 |
Notes payable | 720,000 | 200,000 |
Accruals | 489,600 | 136,000 |
total Current liability | 1,733,760 | 481,600 |
Long-term debt | 1,000,000 | 323,432 |
Common Stock | 460,000 | 460,000 |
Retained Earning | -327,168 | 203,768 |
1,132,832 | 987,200 | |
Total equities | 2,866,592 | 1,468,800 |
Income Statement | ||
Sales | 5,834,400 | 3,432,000 |
Cost of Goods Sold | 5,728,000 | 2,864,000 |
Other expense | 680,000 | 340,000 |
dep | 116,960 | 18,900 |
EBIT/ LOSS | -690,560 | 209,100 |
Interest expense | 176,000 | 62,500 |
EBT/ LOSS | -866,560 | 146,600 |
tax | -346624 | 58640 |
net income/loss | -519,936 | 87,960 |
Required:
Explain the broader concept of these ratio areas and calculate at least three ratios in each area for both companies and compare the firm performance.
Liquidity
Profitability
Leverage
Efficiency ratio/Asset Activity
Market ratio
Du Pont Ratio
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason