answer question 1 and 2 provided in the pictures.

Select two (2) companies' annual financial statements for year ending 2020. Both these companies are to be in the same industry. 1. Perform horizontal and vertical analysis on the following (minimum 2 types of ratio for each): a) Liquidity b) Profitability c) Activity d) Gearing 2. Interpret the ratios above with trend and comparative analysis. 3. Explain the capital structure of both companies. 4. Discuss, with proper justifications, whether you would recommend investment in the company selected, or not. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (In millions except per share data) 2020 2019 2018 4,280 22 - 4,268 33 (21) 4,280 1,760 S 4,259 48 (39) 4,268 1,760 4,302 1,760 $ S 17,154 307 141 (1) 17,601 16,520 433 201 15,864 467 225 (36) 16,520 17,154 65,855 7,747 (7,047) 66,555 63,234 546 8,920 (6,845) 65,855 60,430 3,014 6,434 (6,644) 63,234 Year Ended December 31, Equity Attributable to Shareowners of The Coca-Cola Company Number of Common Shares Outstanding Balance at beginning of year Treasury stock issued to employees related to stock-based compensation plans Purchases of stock for treasury Balance at end of year Common Stock Capital Surplus Balance at beginning of year Stock issued to employees related to stock-based compensation plans Stock-based compensation expense Other activities Balance at end of year Reinvested Earnings Balance at beginning of year Adoption of accounting standards! Net income attributable to shareowners of The Coca-Cola Company Dividends (per share - $1.64, $1.60 and $1.56 in 2020, 2019 and 2018, respectively) Balance at end of year Accumulated Other Comprehensive Income (Loss) Balance at beginning of year Adoption of accounting standards! Net other comprehensive income (loss) Balance at end of year Treasury Stock Balance at beginning of year Treasury stock issued to employees related to stock-based compensation plans Purchases of stock for treasury Balance at end of year Total Equity Attributable to Shareowners of The Coca-Cola Company Equity Attributable to Noncontrolling Interests Balance at beginning of year Net income attributable to noncontrolling interests Net foreign currency translation adjustments Dividends paid to noncontrolling interests Acquisition of interests held by noncontrolling owners Contributions by noncontrolling interests Business combinations Other activities Total Equity Attributable to Noncontrolling Interests (13,544) (12,814) (564) (166) (13,544) (10,305) (409) (2,100) (12,814) (1,057) (14,601) (52,244) 228 (51,719) 501 (1,026) (52,244) 18,981 S (50,677) 704 (1.746) (51,719) 16,981 (52,016) 19,299 $ $ $ 2,077 S 65 2,117 $ 21 (153) (18) 1,905 42 53 (31) 45 (48) (84) 3 59 17 1 101 7 2,077 $ 1.985 S 2,117 S Refer to Note 1 and Note 5. 5. Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SI ESIDIARIES XXVSCHINATEDRALANCE NIEKTN In milisreceresi par valer) THE COCA-COLA COMPANY AND SUBSTIN APLIES CONSOLIDATED STATEMENTY OF CASH FLOWS In milline) ar ASSETS Current Aeria Cradi s NES 1,536 12 CIK (HILY XX 1914 1365 201 (2009 1421) 91 6,176 1,035 225 14131 14671 6,7955 1,771 SS 2445 2144 3.36 1,916 19.01 19.272 127 1.401 0,1 1221 3.02 2,379 1,895 10411 10,025 994 695 645 113 55: 62 (12401 251 1 21.1.9) 110 (15 181 1.450 10.12 05 17.500 143 57.29 $ 1449 (126) 1.362 104 19 (532) 40 MS4 972 2412 10,318 9.22 15164 7 35,261 da del Cpg Artes Cuslidol inlin Dunities indian Sach- und Cape Helmet press-afstand For new Significar gui Our perai supe Uhrix Neng n speziabad but Nei Cash Provided to operating Artvin In Act Pero www.makos Anities if luis pily urial lans lecutis PREAD iurdapathulai, s inian ukile Muilks Pues property, latwall Oths i aliriis Net Chirwa dini aying Acties Fetisits DURI ' rel| Perwater ws Oran firin utinis Net Chriad hylland inj Meaning Acties Eltor Extmag kake Care Cisl, Ciril Equivakus, BetrickCinto Notre Chaquets Cash Cash Equivalents Reseadesti Cash quhet Ne imathuraanikaialisticate cujuvakia during the you: Canh trbs, rexinde cand extracted cockris bergelycar Cush, Cash Equivalcals Horted Caband blewricio CabEyalvaktet End of Year Lec: Restricted cut and text teknisenyar Cashelish Endal Year Refer ke Nuks Cublic Financial Statemesla (4.177 184 22 (1,4773 318 co S Stoessile Tom Cash, Casa Equivalent and Short Term lasestas Marble sourite Traalaan aikaan 526 anal $524, naputely Tuvecois Propedeapes and resets Total Cases Epsily minden Other in Otherwis Deluna Printers, planiram - Trademarks with indefahe thes Grudwill Other itlarga Talalts LLABILITIES AND EQUITY Current les Accula payable cul expics Louis de les payable Cum mories of me A NEWS Total Currant abilities Lastern da Other likes Dimana w liabilitis The Coca-Cola Company Sherweis' Equit Common stock 50 25 par value outed 11.200 Shares:iscord 7010 shades Cel caris Beu ... Accum charcotics.elcon (los) Theorie-273 d 2,7 livab Equity Attributable to Sharners of the Coca-Cola Company Eyaily ratatligiran Talal Buils Totalities and gully Recer to Notes to Consolidated Funcil Surences. 23.00) 11,312 10.94 6334 121,7) #41 (11 (1/1) 310 UND 11,145 S 2.183 411 789 14.NI 10135 9,453 1.RU 112 11.11 133 (221) 1,004) 29,635 91 1413 () CIVI ifra) (2031 (10) 414 27,516 8319 10 12.561 SSIS ,6 319 1 . 319 1995 1.72 12,154 65,195 03.311) 192.2441 IN98 2,945 3 93.5 241 9,031 1.760 17. when 66,559 (14/01) 12/16 19,294 1.485 21.2011 87.29 $ 5 21,028 SIRI 5 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) 2020 7,768 $ 2019 8,985 $ 2018 6,476 S $ 2020 33,014 $ 13,433 19,581 9,731 853 Year Ended December 31, Consolidated Net Income Other Comprehensive Income: Net foreign currency translation adjustments Net gains (losses) on derivatives Net change in unrealized gains (losses) on available-for-sale debt securities Net change in pension and other postretirement benefit liabilities Total Comprehensive Income Less: Comprehensive income attributable to noncontrolling interests Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company (911) 15 (47) (267) 6,558 (132) 74 (54) 18 (159) 8,864 110 (2,035) (7) (34) 29 4,429 95 8,997 $ 6,690 $ 8,754 $ 4,334 Year Ended December 31, Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Other operating charges Operating Income Interest income Interest expense Equity income (loss) net Other income (loss) net Income Before Income Taxes Income taxes Consolidated Net Income Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basic Net Income Per Share Diluted Net Income Per Share Average Shares Outstanding - Basic Effect of dilutive securities Average Shares Outstanding - Diluted 2019 37,266 $ 14,619 22,647 12,103 458 10,086 563 946 1,049 34 10,786 1,801 8,985 65 8,920 $ 2.09 $ 2.07 $ 4,276 38 4,314 370 1,437 978 841 9,749 1,981 7,768 21 7,747 $ 1.80 $ 1.79 $ 4,295 28 4,323 2018 34,300 13,067 21,233 11,002 1,079 9,152 689 950 1,008 (1,674) 8,225 1,749 6,476 42 6,434 1.51 1.50 4,259 40 4.299 Refer to Notes to Consolidated Financial Statements. $ 65 $ $ Calculated based on net income attributable to shareowners of The Coca-Cola Company. Refer to Notes to Consolidated Financial Statements. 64 Consolidated Balance Sheet PepsiCo, Inc. und Subsidiaries December 26, 2020 and December 28, 2019 (in millions except per shure amounts) Consolidated Statement of Equity PepsiCo, Inc. and Subsidiuries Fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 (in millions except per share amounts) 2020 2019 2018 RE Shares 2009 H TER AI . 5 DX5 IL.L) 10.71 1 191 1751 ......... Delaros, berri BEYCE Chinwand Bunlarda Tulad Naparstad Prekendsted Delure, brystyce: Breauptius | Detener el preferred me 10.23 1.31 121 199 07 ASSETS Current Assets Cash and cash equivalents Shoul-icem investments Acorants and notes receivable, ner Inventories Prepaid expenses and other current assets Totul Current Assets Property, Plant and Equipment, met Amortizable Intangible Assets, net Goodwill Other Indefinite-Lived Intangible Assets Investments in Noncontrolled Affiliates Deferred Income Taxes Other Assets Total Assets s 8,185 S 1.3641 229 1.404 7,822 4.172 3.13R 874 747 25,001 17.645 21,369 19.105 1,703 1.433 18.757 15.501 17,612 11.610 2,792 2.683 4,372 4,359 3,312 3,011 $ 92.918 $78,547 L.391 13 23 24 ! . JHE 1.1 1 (12) 12 LS! 1,153 73 Center Pleaf you Siriasili preko ASARIO Channe taperwork Beauty Catalin ewwa Par Valea - Mrs ariniye SUE lius at Telain rain with and ca Scope, IN, PURI PRIE walki SS PUSES Ole Melares, end in your 3.83 214 wi 2.5 351 (143) 1122 1114 3 1.331 1.331 - 1.910 1SSE - 995 S bel, yaniye SS. 3.780 S 19,592 23.372 40.370 4.284 11,340 79.366 2.921 17.541 20.461 29,148 4.091 9.979 6.3.679 4 7,13 . 52 52,899 1.491 12315 3.03 11541 1579 1933 LIABILITIES AND EQUITY Current Liabilities Short-term delt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Deferred Income Taxes Other Liabilities Total Liabilities Commitments and contingencies PepsiCo Common Shareholders' Equity Common stock, par value 1 per share (authorized 3,600 shares; issued, net of repurchased conmon stock at par value: 1.380 and 1,391 shares, respectively Capital in excess of par value Retained earnings Acumulated uber cut prcbccsive loss Rupurchased cucuma slock, in excess of pur valuc (487 and 476 shat, cspoctively Total PepsiCo Common Shareholders' Equity Noncontrolling inlorusis Total Equity Total Liabilities and Equity (14) 0,176 (IS) ( 115,119 819 10 {I11 (2.041 15 () Niele Pepe Cacharest Bulacanal and suck Selares, cad of you Antall Other Care Len Balur, CE Chercampare wheretha Pepe Bulacan Rapoarched Cunnik Rekre legeringeye Sure repas Back RSUS.Pd Price Olai Robre care Twal Pendily Naglar - Mass Vatrometri Tiszolgd ACES 1981 1941 5 1291 4 (18) PS SIC 12.1991 2003 492 321 - 14811 14151 450 23 3.886 61.946 (14,300) (36,769 14,786 X2 14.68 78.547 13, 111 14,3 3,910 63,443 (15,476) (38,446) 13,454 98 13.552 92,918 S 12551 14318 st SS 43 16 14* S $ 1 31 cally 52 See accompanying notes to the consolidated financial statements Total Equy 13,552 5 14.00 : la Cuildina er en de were 54.0025, 53.7925 51.5815 Lut 2000, 2019 2013, Leiptively. SE UP a lo lle alla fine dus. Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 in millions) 2020 2019 2018 Operating Activities Net income $ 7,175 S 7,353 S 12,559 Depreciation and amortization 2,548 2,432 2,399 Shan-baned campensation externe 264 237 256 Restructuring and impairment charges 289 370 38 Cash payments for restructuring charges (255) (350) (255) Inventory fair value adjustments and meter and integration charges 255 S5 75 Cash payments for merger and integration charges (131) (10) (73) Pension and retiree medical plan expenses 408 519 221 Pension and retiree medical plan contributions (562) (716) (1,708) Deferred income taxes and other tax charges and credits 361 453 (5311 ) Net tax related to the TCJ Act (8) (28) Tax payments related to the TCJ Act (78) (423) (115) Other net tax benefits related to intention reorganizations (2) (4,347) Change in assets and Liabilities: Accounts and notes receivable (420) (650) (253) Inventories (516) (190) (174) Prepaid expenses and other current assets 26 (87) 9 Accounts payable and other current liabilities 766 735 82 Income taxes payable (159) (287) 448 Other, net 642 218 (258) Net Cash Provided by Operating Activities 10.613 9,649 9.415 Consolidated Statement of Cash Flows (continued) PepsiCo. Inc. and Subsidiaries Fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 (in millions) 21120 2019 2018 Financing Activities Proceeds from issuances of long-term debt $ 13,809 S4,621 S Payments of long-term deht (1,830) (3,970) (4,007) Debt redemption'cash tender and exchange offers (1.100) (1,007) (1,589) Short-term borrowings, by original maturity: More than three months proceeds 4,077 6 3 More than three months. payments (3,554) (2) (17) Three months or less.net (109) (3) (1,352) Cash dividends pnid (5,509) (5,304) (4.930) Share repurchasca - common (2.000) (3.000) (2.000) Proceeds from exercises of stock options 179 329 281 Withholding Lax payments un restricted stock units (RSUS), performance stock units (PSS) and PepsiCo equity performance units (PEPunits) converted (96) (114) (103) Other financing (48) (45) ( (55) Net Cash Provided by/(Used for) Financing Activities 3,819 (8.489) (13,769) Effect of exchange rate changes on cash and casb equivalents and restricted cash (129) 78 (98) Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash 2,684 (5,199) 112 Cush and Cash Equivalents and Restricted Cash, Beginning of Year 5,570 10,769 Cushund Cash Equivalents and Restricted Cush, End of Year $ 8,254 S 5,570 S 10,769 10,657 5 companying roles to the consolidaid linical (4,240) 55 (6,372) 4 (4,232) 170 (2,717) 253 (3,282) 134 (1.496) 505 Investing Activities Cantal speling Sales of properly, plant and equipment Acquisitions, Det of cash acquired, and investments in noncontrolled affiliates Divestitures Short-term investments, by original maturity: More than three months. purchases More than three months. malurilies More than three months. Nule Three months or less, net Other investing.net Net Cash (Used for)Provided by Investing Activities (1,135) (5,637) 12,824 1,498 16 2 2 4,564 16 62 19 (8) (6,437) 27 42 (11,619) (Continued on following page) Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 (in millions except per share amounts) 2018 12.559 2020 2019 2018 $ 70,372 S 67,161 $ 64,661 31,797 30.132 29,381 38,575 37,029 35,280 28,495 26.738 25,170 10,080 10.291 10,110 117 (44) ( 298 (1,128) (935) (1,219) 9,069 9.312 9,189 1,894 1,959 (3,370) 7,175 7.353 12,559 55 39 44 $ 7,120 S 7,314 $ 12,515 Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits income (expense) Net interest expense and other Income hefore income taxes Provision for(benefit from income taxes (See Note 5) Net income Less: Net income uttributable to noncontrolling interests Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted Weighted average common shares outstanding Basic Diluted Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 (in millions) 2020 2019 Nel income $ 7,175 S 7,353 S Other comprehensive (lossy/income, net of taxes: Nel currency translation adjustment (650) 628 Net change on cash flow hedges 7 (90) Net pension and reliree medical adjustments (532) 283 Other (1) (2) (1,176) 819 Comprehensive income 5,999 8,172 Less: Comprehensive income attributable to noncontrolling interests 55 39 Comprehensive Income Attributable to PepsiCo $ 5,944 S 8,133 S (1.641) 40 (467) 6 (2.062) 10,497 44 10,453 See accompanying notes to the consoliduted financial statements. S $ 5.14 S 5.12 S 5.23 $ 5.20 $ 8.84 8.78 1,385 1,392 1,399 1,407 1,415 1,425 See accompunying notes to the consolidated financial statements