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1. begin{tabular}{|c|c|c|c|c|c|c|} hline (smillions) & & Numerator & 1 & Denominator & = & D/E hline D/E: & & & I & & &

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1. \begin{tabular}{|c|c|c|c|c|c|c|} \hline (smillions) & & Numerator & 1 & Denominator & = & D/E \\ \hline D/E: & & & I & & & \\ \hline & \$ & 0 & 1$ & & 0= & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline (Smillions) & & Numerator & 1 & Denominator & & TIE \\ \hline TIE: & & & 1 & & = & \\ \hline & \$ & 0 & 15 & & = & \\ \hline \end{tabular} Required 1. Compute the following liquidity and solvency ratios for Coca-Cola. a. Current ratio b. Quick ratio c. Debt-to-equity ratio d. Times interest earned Following are summarized 2020 and 2019 income statements and balance sheets for The Coca-Cola Company. 2. Interpret your results for Coca Cola in comparison to those of PepsiCo (which follow). \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{THECOCA-COLACOMPANYANDSUBSICConsolidatedBalanceSheets($millions)} \\ \hline December 31 & 2020 & 2019 \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & $6,734 & $6,421 \\ \hline Short-term investments & 1,755 & 1,454 \\ \hline Marketable securities & 2,327 & 3,199 \\ \hline Trade accounts receivable, net & 3,116 & 3,935 \\ \hline Inventories & 3,237 & 3,349 \\ \hline Prepaid expenses and other assets & 1,899 & 1,869 \\ \hline Total current assets & 19,068 & 20,227 \\ \hline Equity method investments & 19,100 & 18,854 \\ \hline Other investments & 805 & 846 \\ \hline Other assets & 6,128 & 6,020 \\ \hline Deferred income tax assets & 2,438 & 2,390 \\ \hline Property, plant, and equipment, net & 10,680 & 10,740 \\ \hline Trademarks with indefinite lives & 10,301 & 9,183 \\ \hline Goodwill & 17,348 & 16,613 \\ \hline Other intangible assets & 643 & 729 \\ \hline Total assets & $86,511 & $85,602 \\ \hline \multicolumn{3}{|l|}{ Liabilities and equity } \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Accounts payable and accrued expenses & $11,045 & $11,210 \\ \hline Loans and notes payable & 2,163 & 10,895 \\ \hline Current maturities of long-term debt & 481 & 4,215 \\ \hline Accrued income taxes & 781 & 410 \\ \hline Total current liabilities & 14,470 & 26,730 \\ \hline Long-term debt & 39,764 & 27,268 \\ \hline Other liabilities & 9,368 & 8,433 \\ \hline Deferred income tax liabilities & 1,817 & 2,263 \\ \hline Total liabilities & 65,419 & 64,694 \\ \hline Total equity & 21,092 & 20,908 \\ \hline Total liabilities and equity & $86,511 & $85,602 \\ \hline \end{tabular}

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