• Coca-Colas return on assets was 19.4 percent, and return on common shareholders equity was 41.7 percent. Briefly explain why these two percentages are different.

• Coca-Cola had earnings per share of $5.12, and PepsiCo had earnings per share of $3.97. Is it accurate to conclude PepsiCo was more profitable? Explain your reasoning.
• Name a ratio used to evaluate short-term liquidity. Explain what the statement evaluate short-term liquidity means.
• Explain the difference between the current ratio and the quick ratio.
• Coca-Cola had an inventory turnover ratio of 5.07 times (every 71.99 days), and PepsiCo had an inventory turnover ratio of 8.87 times (every 41.15 days). Which company had the best inventory turnover? Explain your reasoning.
• Name a ratio used to evaluate long-term solvency. Explain what the term long-term solvency means.