14 - 3 Question

(3) The basic earnings per share and price-e price-earnings ratio for 20 Cola, use the basic earnings per sl earnings per share.) Coca-Cola's common stock had a ma rket at the end of fiscal year 2010, and PepsiCo common stockhafr common stock had a market price of (b) w hat conclusions concerning the two companies companies can be drawn from these data? Decision-Making Across the Organization BYP14-3 As the CPA for Bonita Inc., you ha rom the or Bonita Inc., you have been asked to develop some key ratio IOS f comparative financial statements. This information is tobe d to convince creditors that the company is solvent and will continue as a going concern. Th equested and the computations use he data r developed from the financial statements follow. 2014 2013- Current ratio 3.4 times 2.1 times Acid-test ratio 8 times 1.3 times Asset turnover 2.6 times 2.2 times Net income Down 9% Earnings per share Instructions With the class divided into groups, complete the following. Bonita Inc. asks you to prepare a list of brief comments statin g how each of these items supports the ents to solvency and going-concern potential of the business. The company wishes to use these comm sted, g , giving support its presentation of data to its creditors. You are to prepare the comments as reque tive inference tha the implications and the limitations of each item separately. Then prepare a collec ntial. may be drawn from the individual items about Bonita's solvency and going-concern poten Real-World Focus n and Analysis section of an annual report addresses BYP144 The Managemen t Discussio its claims. rate performance for the year, and sometimes uses financial ratios to support ddress www. to v bm.com/investor/tools/index.phtml or go to www.wley.com/college/we hess wvvw