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. Calculate the current ratio and quick ratio for both companies for 2020 and 2021. Write a paragraph describing what these ratios indicate about the

. Calculate the current ratio and quick ratio for both companies for 2020 and 2021. Write a paragraph describing what these ratios indicate about the liquidity of each company in 2021 compared to 2020. Write a paragraph describing what these ratios indicate about the liquidity of Pepsi compared to Coke for both years. Which company seems to be more liquid? What are the advantages and disadvantages of liquidity? 2. Calculate the accounts receivable turnover and the average collection period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate the effectiveness of their accounts receivable collections. Which of the two companies seem to be doing a better job with receivables? How does this collection process affect the overall success of the company? 3. Calculate the inventory turnover and the average sales period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? 4. Calculate the gross margin percentage, net profit margin percentage, and return on assets for both companies for 2020 and 2021. Explain in a paragraph what these ratios show about each companys profitability compared to the year before and compared to each other. Indicate which company shows the best prospects for future profits and explain in detail why you think the ratios support your observations. 5. Prepare a vertical analysis on the income statement and the balance sheet for Pepsi and Coca Cola for 2020 and 2021. Write a paragraph highlighting what you have learned from the percentages of sales or total assets calculated from the financial statements. Write also about the comparison between 2020 and 2021 and between Coke and Pepsi. 6. Prepare a horizontal analysis on the income statement and the balance sheet for Pepsi and Coca Cola for 2020 and 2021. Be sure to calculate the change in dollars and percentages for all of the revenues and expenses. What do the changes indicate about Pepsis success in 2021 relative to 2020? Do the same comparison for Cokes income statement. What do the changes indicate about Cokes improvement or lack thereof between 2021 and 2020? With this comparison of both companies over time now compare Coke vs. Pepsi and explain why one company seems to do better than the other, financially speaking. 7. Based on all of your calculations and observations described above, make a recommendation as to which company would be a better investment. Give the reasons for your conclusion. Submit your Analysis in a Word Document showing ALL of your work by Sund

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