4. What conclusions can you draw from your analysis of the two companies? Which company do you think is in a stronger financial position?

The Coca-Cola Company and PepsiCo Inc. are the two competitors in beverage and snack markets. In this case, you will compare some of the key financial results of both companies. The following are the selected financial data for each firm: The Coca-Cola Company Pepsi-Co, Inc Selected Financial Data Selected Financial Data For Years ended December 31 For Years ended December 31 2015 2014 2013 2015 2014 2013 Acid-Test Ratio 0.58 0.56 0.62 0.68 0.48 0.54 Current Ratio 1.24 1.02 1.13 1.31 1.14 1.24 Debt Ratio 0.71 0.67 0.63 0.83 0.75 0.69 Earnings Per Share $1.69 $1.62 $1.94 $3.71 $4.31 $4.37 Inventory Turnover 5.83 5.61 5.63 9.68 9.43 8.94 Net Income ($ in millions) $7,351 $7,098 $8,584 $5,452 $6,513 $6,740 Rate of return on Sales 16.60% 15.43% 18.32% 8.65% 9.77% 10.15% Receivables Turnover 10.54 9.85 9.73 9.64 9.8 9.49 Return on Assets 9.01% 8.33% 10.27% 9.16% 10.03% 10.06% Operating Income Percentage 19.70% 21.11% 21.83% 13.25% 14.37% 14.61% Revenues ($ in millions) $44,294 $45,998 $46,854 $63,056 $66,683 $66,415 Times Interest Earned Ratio 10.2 20.1 22.09 8.61 10.54 10.65 Working Capital ($ in millions) $6,465 $612 $3,493 $5,453 $2,571 $4,364 Requirements 1. Using the financial data throughout the three years for The Coca-Cola Company discuss the company's: a. Ability to pay current liabilities; b. Ability to sell inventory and collect receivables; c. Ability to pay long-term debt; and d. Profitability 2. Using the given financial data throughout the three years for PepsiCo, Inc., discuss the company's: a. Ability to pay current liabilities; b. Ability to sell inventory and collect receivables; C. Ability to pay long-term debt; and d. Profitability. 3. Compare Coca-Cola's financial position to PepsiCo's financial position throughout the three years given. How do the two companies compare in the following areas? a. Ability to pay current liabilities; b. Ability to sell inventory and collect receivables; C. Ability to pay long-term debt; and d. Profitability. 4. What conclusions can you draw from your analysis of the two companies? Which company do you think is in a stronger financial position