A B C D E F G H 1 Below are the ratios (with excel formulas) calculated for Pepsi-Co, Inc. for you - all you need to do is calculate the Coca-cola Company ratios 2 Pepsi-Co, Inc. The Coca-Cola Company 3 Selected Financial Data Selected Financial Data 4 For years ended December 31 For years ended December 31 5 2020 2019 2018 2020 2019 2018 6 Acid-test ratio (CA-inventory-prepaid)/CL 0.77 0.66 0.82 7 Current ratio (CA/CL) 0.98 0.86 0.99 8 Debt ratio 0.85 0.81 0.81 9 Earnings per share 5.14 5.23 8.84 10 Inventory turnover 8.47 9.32 9.39 11 Net income ($ in millions) $ 7,120 $ 7,314 $ 12,515 12 Accounts Receivables turnover 8.67 8.98 9.05 13 Return on assets 9.34% 10.31% 17.69% 14 Operating income percentage 14.32% 15.32% 15.64% 15 Revenues ($ in millions) $ 70,372 $ 67,161 $ 64,661 16 Working capital ($ in millions) CA-CL (371) (2,816) 245 17 18 Notes: 19 Debt ratio = TL/TA 20 Inv. TO= CGS/Avg. Inv. 21 Acciounts receivable TO=SALES/Avg. AR 22 Return on Assets=NI + {Interest Expense * (1-Tax)} / Avg TA 23 Operating Income %=operating income /SALES REVENUE 24 25 Inventory Turnover, Receivables Turnover, Return on Assets figures for 2018 use ONLY 2018 values in the denominator as we don't have 2017 numbers to averageD E G H Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions 2 CURRENT ASSETS Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 3 Cash and cash equivalents $ 6,795 $ 6,480 $ 9,077 Revenues 33,014 37,266 34,300 4 Short-term investments 1,771 1,467 2,025 Cost of Goods and Services Sold 13,433 14,619 13,067 5 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8,566 7,947 11,102 GROSS PROFIT 19,581 22,647 21,233 6 Marketable securities 2,348 3,228 5,013 Selling, General and Administrative Expense 9,731 12,103 11,002 7 Trade accounts receivable, less allowances of $524 and $501, respectively 3,144 3,971 3,685 Other Cost and Expense, Operating 853 458 1,079 8 Inventories 3,266 3,379 3,071 OPERATING INCOME 8,997 10,086 9,152 9 Prepaid expenses and other assets 1,916 1,886 2.059 Interest income 370 563 689 10 TOTAL CURRENT ASSETS 19,240 20,411 24,930 Interest expense (1,437) (946) (950) 11 EQUITY METHOD INVESTMENTS 19,273 19,025 19,412 Equity income (loss) - net 978 1,049 1,008 12 OTHER INVESTMENTS 812 854 867 Other income (loss) - net 841 34 (1,674) 13 OTHER ASSETS 6,184 6,075 4,148 INCOME BEFORE INCOME TAXES 9,749 10,786 3,225 14 Deferred Tax Assets, Net, Noncurrent 2,460 2,412 2,674 Income taxes 1,981 1,80 1,749 15 PROPERTY, PLANT AND EQUIPMENT - net 10,777 10,838 9,598 CONSOLIDATED NET INCOME 7,768 3,985 5,476 16 TRADEMARKS WITH INDEFINITE LIVES 10,395 3,266 5.682 Net Income (Loss) Attributable to Noncontrolling Interest 21 65 42 17 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 109 51 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 7,747 8,920 6,434 18 GOODWILL 17,506 16,764 14,109 19 OTHER INTANGIBLE ASSETS 649 627 745 BASIC NET INCOME PER SHARE (in dollars per share) 1.8 2.09 1.51 20 TOTAL ASSETS 87,296 86,38 83,216 DILUTED NET INCOME PER SHARE (in dollars per share) 1.79 2.07 1.5 CURRENT LIABILITIES AVERAGE SHARES OUTSTANDING (in shares) 4295 4276 4259 22 Accounts payable and accrued expenses 11,145 11,312 9,533 Effect of dilutive securities (in shares) 28 38 40 23 Notes and Loans Payable, Current 2,183 10,994 13,835 AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) 4323 4314 4299 24 Current maturities of long-term debt 485 4,253 5,003 25 Accrued income taxes 788 414 411 NOTES: 26 TOTAL CURRENT LIABILITIES 14,601 26,973 28,782 Tax rate= Provision for Income Taxes/ Income before taxes 0.2032 0.1670 0.2126 27 LONG-TERM DEBT 40,125 27,516 25,376 28 OTHER LIABILITIES 9,453 8,510 7,646 29 DEFERRED INCOME TAXES 1,833 2,284 2,354 30 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY 31 Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares 1,760 1,760 1,760 32 Capital surplus 17,601 17,154 16,520 33 Reinvested earnings 66,555 65,855 63,234 34 Accumulated other comprehensive income (loss) (14,601) (13,544) (12,814) 35 Treasury stock, at cost - 2,760 and 2,772 shares, respectively (52,016 (52,244 (51,719) 36 EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 19,299 18,98 16,981 37 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,985 2,117 2,077 38 TOTAL EQUITY $ 21,284 $ 21,098 $ 19,058 39 TOTAL LIABILITIES AND EQUITY $87,296 $ 86,381 $ 83,2161. Using the financial data for the three years for The CocaCola Company discuss the company's: . Abilityr to pay current liabilities; a b. Ability to sell inventory and collect receivables; c. Ability to pay longterm debt; and d. Profitability. 2. Using the financial data for the three years for PepsiCo; |nc.; discuss the company's . Ability to pay current liabilities; a b. Ability to sell inventory and collect receiyables; c. Ability to pay longterm debt; and d. Profitability. 3. Compare Coca-Cola's financial position to PepsiCo's financial position throughout the three years giyen. How do the two companies compare in the following areas? a. Ability to pay current liabilities; b. Ability to sell inyentory and collect receiyables; c. Ability to pay longterm 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