The Coca-Cola Company and PepsiCo, Inc.

Instructions Go to the Take Action! CD, and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc.

(a) What are the primary lines of business of these two companies as shown in their notes to the financial statements?

(b) Which company has the dominant position in beverage sales?

(c) How are inventories for these two companies valued? What cost allocation method is used to report inventory?

How does their accounting for inventories affect comparability between the two companies?

(d) Which company changed its accounting policies during 2001 which affected the consistency of the financial results from the previous year? What were these changes?