Comparative Analysis Case the Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies financial information to answer the following questions.

(a) What format(s) did these companies use to present their balance sheets?

(b) How much working capital did each of these companies have at the end of 2014? Speculate as to their rationale for the amount of working capital they maintain.

(c) What are the companies annual and 5-year (20102014) growth rates in total assets and long-term debt 2012?

(d) What were these two companies trends in net cash provided by operating activities over the period 20122014?

e) Compute both companies (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?

Financial statements:

Go to http://www.coca-colacompany.com/investors/.

Select Financial Reports and Information and then click on 2014 Annual Report on Form 10-K.

The Notes to Consolidated Financial Statements begin on page 78.

Go to http://www.pepsico.com/Investors. Select SEC Filings and then the 10K, dated 2/12/2015 (select the pdf version).

Select Entire document. The Notes to Consolidated Financial Statements begin on page 73.

Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012 (in millions except per share amounts