The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.

Instructions

Use the companies’ financial information to answer the following questions.

a. What type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companies.

b. What are the gross profits, operating profits, and net incomes for these two companies over the 3-year period 2018–2020? Which company has had better financial results over this period of time?

c. What income statement format do these two companies use to report comprehensive income?