Consider the Coca‐Cola Company and Pepsi‐Cola Company. Both companies compete with each other in the soft‐drink sector. Get the most recent annual report for each company, and answer the following questions. (You can visit the firms’ websites to download their annual reports. Look for “Investor’ Relations.”)
(a) Review the most recent financial statements and comment on each company’s financial performance in the following areas:

• Asset management
• Liquidity
• Debt management
• Profitability
• Market value

(b) Check the current stock prices for both companies. The stock ticker symbols are KO for Coca‐Cola and PEP for Pepsi. Based on your analysis in part (a), in which company would you invest your money and why?