PepsiCo’s financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented in Appendix B.

Instructions

(a) Based on the information contained in these financial statements, determine each of the following for each company.
(1) Gross profit for 2010.
(2) Gross profit rate for 2010.
(3) Operating income for 2010.
(4) Percentage change in operating income from 2009 to 2010.

(b) What conclusions concerning the relative profitability of the two companies can you draw from these data?
Real-World Focus