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 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 profit, and net income for these two companies over the 3-year period 1999–2001? Which company has had better financial results over this period of time?

(c) Identify the irregular items reported by these two companies in their income statements over the 3-year period 1999–2001. Do these irregular items appear to be significant?

(d) Refer to PepsiCo’s Management Analysis section under “Items Affecting Comparability:” Briefly discuss how these items affect the comparability and consistency of PepsiCo’s income over 1999–2001.