Comparative Analysis Case: The Coca-Cola Company and PepsiCo, Inc. UYJ3.2 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 type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companics. b. What are the gross profits, operating profits, and nef incomes for these two companies over the 3-year period 2018-2020? Which company has had better financial results over this period of time? c. What income statement format do these two companies use to report comprehensive income? Specimen Financial Statements: The Coca-Cola Company States since te8ti, are oow available in more theas 200 councrice. Banie Net lacerte Irer Share! Diluted Net Income Per Share? Avrrage Sharen Outetanding Blakic Flfer of tilurive scouritien Average Shares Outstanding-Diluted THE COCA-COLA COMPANY AND SUESWDLRISS CONSOLDATED STATEMENTS OF COMTPEENSIVE INCOMX Yrar Fadod Decrenber 31, Is ituliliomi) Consolidated Net Income Other Cenvprehenwive Inceme: Net forrign cuatrecy tranalabian adijatmrats Net gaina (loesea) cer derivathon Net change in untealined gains dotore on availeble-fornale delot arcuaritiea Nit charne in pension and other pootietirnment beluefit liakilities Toral Comprehensive Iacone Total Cenuprehenshe Iacense Attributable to Shareewnen of The Cera-Cola Company THI COCA-COLA COMPANY AND SUBSIDLARIS CONO.IDNTT.D IHA.ANCE SIIE.EIT December 36 Current Assetw Chalk aril cash nquivalente Shootatern hiveatienes Tocal Cauk, Catt Fauivalrite and Short:Trme loveunsents Markrable securition THE COCL-COIA COMPANY AND SUHSIDLRIFS CONSOLIDNTED HLLNCE SHEETS Drcainace 31. Tin millinas excrit par value. ASsE'T Curwet Aneets Cath and cash equivalents Short-tra in inveatmente Tocal Cask, Cah Fpaivalerts and Short-Term Irweatenents Marketalye securities Trade atciunta meceivable, les allivarices of 5526 and 5524, rrmpetively Itevyntories Trepaid expenser and other assess: Total Burrent Ansetw Heguity method invranecus Odser ingetmetas ( Peher asurs Deferred income tas anela Trademarks with indrfinet lipes chooduill Chiorr intanglal uejes Total Assets HABIITIIS AND ROUTTY Cerreat Laluilitien Mocounte pwathe and acracil copinien Louns and notri payable Acrrand income Lavei Total Cerreat Labilities Foing term detat Total Liabilities and Equity THE COCA-COLA COMPANY AND SUBSIDLARIS CONSOI.IDATED STATEMENIS OF CASH FLOWS Toral Liahilirire and Equity THE COCA-COLA COMPANY AND SUBSIDLRISS CONSOLMATED STATEMENTS OF CASH FLOWS Year Faded December 31, (Tri niticed) Operating Activitir: Ciomwlidated net income Deperciacon and a mortiration Stock-bacul compersation rapense Defirind income taves Bquicy (income) lass bet of diviulends Figrignt carreticy atgustments Significant (gaim) losics - net Other operating charget Other itemb Net change in operating anseb and liabilitics Net Cash Provided by Operatisg Activities Investing Activities Parchave of invetenents. Trucecds from dieposals of imxtinents Acyuinitiots of busineises, equity method imvestments and nonmarletable sccuritics Rurchases of property plant and rquijement Honcede from thiposale of progemy, plant and rquigment Duher itweting activitart Net Cash Provided by (Used in) Invrsting Activities Financing Activities Inesances of deby Ravarente of dobt tsuancrs af work Purchases of itrvestnsents Procecds fivin digozats of insesinerrits Acquisitions of busineses, equity nerthod incatments and nontradketable sccunitics Phycesto from dippowls of buminessez, equity method imsetments and noumatirtable vccuritien Tharcliaves of property plant and equigntent Trocccch firan cigposal of property, plant and ogaipmont Ovhet invating activities Net Cash Previded by (Uhed in) Investing Activities Financing Activities. levarines of debt. Feymente of debt lawances of stock: Burchant of nock for tirasury. Dividends Cther frameine activitien Net Caah Provided by (Uned in) Financieg A tivitien Cash, Caeb Riquivalents, Mestricted Cash and Restricted Caah Nopuivalents Chath, cath requinalents, iestricted cashand reatricicel cash cquivalenta at beginsing of year Ciash, Cash I quuivalente, Bestricted Caeh anal Heatricted Cash liquinalents at Ead of Yrar Leasi Meturicietl casly and reatricted casle creivalente at enil of year Cash and Cash Equivalents at Rand of Vear THE COCA-COLA COMPANY AND SUBSIDARIES CONSOLDDNED STATEMENTS OF SHAREOWNERS' EQUTTY Yray Erided Deccinber MH, In willion evespit per alaas datal Rquity Artrihusable ro Shareowners of The Coca-Cola Company Number of Cemumas Shares Outstanding Balance at beginning of yrar 292029192018 Cash, Caah Equivalents, Rentricted Cash and Restricted Cash Equivalentw at Kan of Year Caeh and Caah Rquivalents at Kind of Year THE COCA.COLA COMFANY AND SUESIDLARIS CONSOLIDATED STATEMENTS OF SHAROONNR' EOUTY Vear Finded Decinber 31. Equity Artributable to Shareownern of The Ceca-Cela Cempany Number of Ceenamen Shares Outstanding Halange at beginning of year Treamery mork isused iu emplogeen relaind to stock-based oorngensution plens Thenchater of stick for irramiry Bulane at chal of year Cammon Sterit. Capital Surplas Halance at brginninz of year Stock issued to employece trlated to nock-bas did curpentation plans Stocl luad comzreation expenae Chber artivition Halance at end of year. Reinvested Karninge Halarice a hegietuing of Year Adoprition of accounting atandarit! Ilalane me crub of yrar Arcumbulated Orber Comyorchenaive Income (Taso) balance at becincung of yrar Adoptior of accownting mandardst Nrt other comparhenele income foast Halance at rad al veat Relevtstrd Farninge Chart actavicica Total Equity Atributable wo Noncontrulting Intertuta Terfer is Nober 1 and Niars. Specimen Financial Statements: PepsiCo, Inc. and consamora in more than 20 V countries athd terrilorits Conselidated Statenarnt ef Incerse Fryicio, Inc, nnd Bubsidiarirs Fiscal years chded December 2t, 2000, Decmber 28, 2019 and Drcember 22,201 at fit railions everigh per thase atecund) Ciansolidated Statement of Comprehensive Incane MrepaiCo, Ine and Subidiaric Fiscal yran ended December 26,2020 , Decenber 20,2019 and Decernbet 29,2018 Fucal yean coded December 26, 2080, Decomber 28,2019 and Dicomber 28,2018 Imreting Acivatica Caparal tiendien Sales of propertr piant and equipenent? Aiquisiticas, net of cach acquird, and incetreente is noeecontroled aldiates Diventimusa Sbotterie impeameab, by oripinal maturity: Mete than thece eicectie - purchanr Mero than there moals - fruturibies More than there monalat - whes Three montan or leas, net Oher imexing net Net Cash (Uwed for)/Frovided by Inwesting Activitirs (4,240)55(6,372)4(4,252)170(2,717)253(8,282)154(1,490500 Financing Activities Procedas from insuancer of long-term drbe Payrornts of longerm dreth Debt redrimotican/rath teoder asd exduate olfirn Divetitara: Sbort-irn inveatments, by crigiral maturity: More than three monthu - parthases Mive than arre month - matirition More than thare monelue - salea Three moxtha or leki, bet Oveher investing, met Net Ciash (Used for]/ Rrovided by lavesting Activitire Financing Aetivitien thocecds froms imuances of lonk-term debt Paytarnte of lorg-term chlot Debt ardermpties/cash tender and exhange ollers More than itsee monthi - procesth More thar theee month i paymeril Thiere momilis or lew, net. Bash covideodo paind Slayr reparchace - cammans Hrocerala fien eucecuet of alock ogeions Oiher finaine ingr Net Cash Provided by/(Used for) Financing Activitiro Iffect of corharye raic changert in cash and cash equivalents and metricted cash Cash and Cash Iwadualenis anel Breiricted Ciash, Itegineing of Yrar Cash and Canh Igaivalente and Resiricted Canh, End of Yrar Censetidated Balance Sheet HepiCa, lne and Sabeidiaric Perenter 25 20al and Decrober 2k, 319 Conselidated Statement of Equity Canenlidated Statement of Equy Hhpreck. Itoc and Subridiaries in rallims eucepatpr thare arroundi) Halance, rnd of year Capital in liceris of Par Valae Halance, beginning of year. Share-baicd compentation raprome Lquity nsued in connection widh prefemed atrok ormersian to cenumon sodk Stork gpticn exerciscr, RSL/3, PSUs and Rh. Rhits converted Wichhichling tax RSL, Pstir and Phranio nomerted Otier Halance, end of yrat Retained Earning Halancr, breginning of year Currulative effect of accoundire changes Nrt income attriletalilo to Acpieto Cialt invicknds dectased - tornasan" Rebirment of perfrred took. Balance, cad of year Accemselated Oider Cieavjerelaeneive Less Ifalsmeg, beginnine of year Bther comprehenaive dombincoms atralarable is Repuico falance, end of yror Jegurchased Comunoa Sterk: Halancr, brewning of year Stame repurchases Dilher Balanos, rad of yrar Total Pepsice Comamon Shareholders' Equity Nomanatrolling Interests Halance, beginaing of yrat Not income attriturable to doncaitidine interate Bistritsudious 10 averomitroling interents Haiance, rad at gear Metained Fiarning Halation teginning of yeur Comulater thed of avoesting charues Nrt incone attritulabie a ficpicia Cuh disidend declarnd - coenenon" Retirement of putferred tipel Halince, rad of year Accamalated Other Comprehenaive Loss Halances tegginaling of year Outer compreberaive fony/income atmbutatil to PepriCo THamer, rivi al yeat Repurchased Consmon Stock Halation, terithin ine verth Shase rejorchase Ciller. Halaner, tuil al yrar. Toral Repeice Cenumon Sharebodere' Rquicy Noerenirelling Interests Hialune, brecening of yrer Nint incomt attritutable to nancontiolling interests Dintribusions io noincontrulling interiat. Acoulaiticial (inker, ari. Halencr, cod oxi yrar Total Fquity Comparative Analysis Case: The Coca-Cola Company and PepsiCo, Inc. UYJ3.2 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 type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companics. b. What are the gross profits, operating profits, and nef incomes for these two companies over the 3-year period 2018-2020? Which company has had better financial results over this period of time? c. What income statement format do these two companies use to report comprehensive income? Specimen Financial Statements: The Coca-Cola Company States since te8ti, are oow available in more theas 200 councrice. Banie Net lacerte Irer Share! Diluted Net Income Per Share? Avrrage Sharen Outetanding Blakic Flfer of tilurive scouritien Average Shares Outstanding-Diluted THE COCA-COLA COMPANY AND SUESWDLRISS CONSOLDATED STATEMENTS OF COMTPEENSIVE INCOMX Yrar Fadod Decrenber 31, Is ituliliomi) Consolidated Net Income Other Cenvprehenwive Inceme: Net forrign cuatrecy tranalabian adijatmrats Net gaina (loesea) cer derivathon Net change in untealined gains dotore on availeble-fornale delot arcuaritiea Nit charne in pension and other pootietirnment beluefit liakilities Toral Comprehensive Iacone Total Cenuprehenshe Iacense Attributable to Shareewnen of The Cera-Cola Company THI COCA-COLA COMPANY AND SUBSIDLARIS CONO.IDNTT.D IHA.ANCE SIIE.EIT December 36 Current Assetw Chalk aril cash nquivalente Shootatern hiveatienes Tocal Cauk, Catt Fauivalrite and Short:Trme loveunsents Markrable securition THE COCL-COIA COMPANY AND SUHSIDLRIFS CONSOLIDNTED HLLNCE SHEETS Drcainace 31. Tin millinas excrit par value. ASsE'T Curwet Aneets Cath and cash equivalents Short-tra in inveatmente Tocal Cask, Cah Fpaivalerts and Short-Term Irweatenents Marketalye securities Trade atciunta meceivable, les allivarices of 5526 and 5524, rrmpetively Itevyntories Trepaid expenser and other assess: Total Burrent Ansetw Heguity method invranecus Odser ingetmetas ( Peher asurs Deferred income tas anela Trademarks with indrfinet lipes chooduill Chiorr intanglal uejes Total Assets HABIITIIS AND ROUTTY Cerreat Laluilitien Mocounte pwathe and acracil copinien Louns and notri payable Acrrand income Lavei Total Cerreat Labilities Foing term detat Total Liabilities and Equity THE COCA-COLA COMPANY AND SUBSIDLARIS CONSOI.IDATED STATEMENIS OF CASH FLOWS Toral Liahilirire and Equity THE COCA-COLA COMPANY AND SUBSIDLRISS CONSOLMATED STATEMENTS OF CASH FLOWS Year Faded December 31, (Tri niticed) Operating Activitir: Ciomwlidated net income Deperciacon and a mortiration Stock-bacul compersation rapense Defirind income taves Bquicy (income) lass bet of diviulends Figrignt carreticy atgustments Significant (gaim) losics - net Other operating charget Other itemb Net change in operating anseb and liabilitics Net Cash Provided by Operatisg Activities Investing Activities Parchave of invetenents. Trucecds from dieposals of imxtinents Acyuinitiots of busineises, equity method imvestments and nonmarletable sccuritics Rurchases of property plant and rquijement Honcede from thiposale of progemy, plant and rquigment Duher itweting activitart Net Cash Provided by (Used in) Invrsting Activities Financing Activities Inesances of deby Ravarente of dobt tsuancrs af work Purchases of itrvestnsents Procecds fivin digozats of insesinerrits Acquisitions of busineses, equity nerthod incatments and nontradketable sccunitics Phycesto from dippowls of buminessez, equity method imsetments and noumatirtable vccuritien Tharcliaves of property plant and equigntent Trocccch firan cigposal of property, plant and ogaipmont Ovhet invating activities Net Cash Previded by (Uhed in) Investing Activities Financing Activities. levarines of debt. Feymente of debt lawances of stock: Burchant of nock for tirasury. Dividends Cther frameine activitien Net Caah Provided by (Uned in) Financieg A tivitien Cash, Caeb Riquivalents, Mestricted Cash and Restricted Caah Nopuivalents Chath, cath requinalents, iestricted cashand reatricicel cash cquivalenta at beginsing of year Ciash, Cash I quuivalente, Bestricted Caeh anal Heatricted Cash liquinalents at Ead of Yrar Leasi Meturicietl casly and reatricted casle creivalente at enil of year Cash and Cash Equivalents at Rand of Vear THE COCA-COLA COMPANY AND SUBSIDARIES CONSOLDDNED STATEMENTS OF SHAREOWNERS' EQUTTY Yray Erided Deccinber MH, In willion evespit per alaas datal Rquity Artrihusable ro Shareowners of The Coca-Cola Company Number of Cemumas Shares Outstanding Balance at beginning of yrar 292029192018 Cash, Caah Equivalents, Rentricted Cash and Restricted Cash Equivalentw at Kan of Year Caeh and Caah Rquivalents at Kind of Year THE COCA.COLA COMFANY AND SUESIDLARIS CONSOLIDATED STATEMENTS OF SHAROONNR' EOUTY Vear Finded Decinber 31. Equity Artributable to Shareownern of The Ceca-Cela Cempany Number of Ceenamen Shares Outstanding Halange at beginning of year Treamery mork isused iu emplogeen relaind to stock-based oorngensution plens Thenchater of stick for irramiry Bulane at chal of year Cammon Sterit. Capital Surplas Halance at brginninz of year Stock issued to employece trlated to nock-bas did curpentation plans Stocl luad comzreation expenae Chber artivition Halance at end of year. Reinvested Karninge Halarice a hegietuing of Year Adoprition of accounting atandarit! Ilalane me crub of yrar Arcumbulated Orber Comyorchenaive Income (Taso) balance at becincung of yrar Adoptior of accownting mandardst Nrt other comparhenele income foast Halance at rad al veat Relevtstrd Farninge Chart actavicica Total Equity Atributable wo Noncontrulting Intertuta Terfer is Nober 1 and Niars. Specimen Financial Statements: PepsiCo, Inc. and consamora in more than 20 V countries athd terrilorits Conselidated Statenarnt ef Incerse Fryicio, Inc, nnd Bubsidiarirs Fiscal years chded December 2t, 2000, Decmber 28, 2019 and Drcember 22,201 at fit railions everigh per thase atecund) Ciansolidated Statement of Comprehensive Incane MrepaiCo, Ine and Subidiaric Fiscal yran ended December 26,2020 , Decenber 20,2019 and Decernbet 29,2018 Fucal yean coded December 26, 2080, Decomber 28,2019 and Dicomber 28,2018 Imreting Acivatica Caparal tiendien Sales of propertr piant and equipenent? Aiquisiticas, net of cach acquird, and incetreente is noeecontroled aldiates Diventimusa Sbotterie impeameab, by oripinal maturity: Mete than thece eicectie - purchanr Mero than there moals - fruturibies More than there monalat - whes Three montan or leas, net Oher imexing net Net Cash (Uwed for)/Frovided by Inwesting Activitirs (4,240)55(6,372)4(4,252)170(2,717)253(8,282)154(1,490500 Financing Activities Procedas from insuancer of long-term drbe Payrornts of longerm dreth Debt redrimotican/rath teoder asd exduate olfirn Divetitara: Sbort-irn inveatments, by crigiral maturity: More than three monthu - parthases Mive than arre month - matirition More than thare monelue - salea Three moxtha or leki, bet Oveher investing, met Net Ciash (Used for]/ Rrovided by lavesting Activitire Financing Aetivitien thocecds froms imuances of lonk-term debt Paytarnte of lorg-term chlot Debt ardermpties/cash tender and exhange ollers More than itsee monthi - procesth More thar theee month i paymeril Thiere momilis or lew, net. Bash covideodo paind Slayr reparchace - cammans Hrocerala fien eucecuet of alock ogeions Oiher finaine ingr Net Cash Provided by/(Used for) Financing Activitiro Iffect of corharye raic changert in cash and cash equivalents and metricted cash Cash and Cash Iwadualenis anel Breiricted Ciash, Itegineing of Yrar Cash and Canh Igaivalente and Resiricted Canh, End of Yrar Censetidated Balance Sheet HepiCa, lne and Sabeidiaric Perenter 25 20al and Decrober 2k, 319 Conselidated Statement of Equity Canenlidated Statement of Equy Hhpreck. Itoc and Subridiaries in rallims eucepatpr thare arroundi) Halance, rnd of year Capital in liceris of Par Valae Halance, beginning of year. Share-baicd compentation raprome Lquity nsued in connection widh prefemed atrok ormersian to cenumon sodk Stork gpticn exerciscr, RSL/3, PSUs and Rh. Rhits converted Wichhichling tax RSL, Pstir and Phranio nomerted Otier Halance, end of yrat Retained Earning Halancr, breginning of year Currulative effect of accoundire changes Nrt income attriletalilo to Acpieto Cialt invicknds dectased - tornasan" Rebirment of perfrred took. Balance, cad of year Accemselated Oider Cieavjerelaeneive Less Ifalsmeg, beginnine of year Bther comprehenaive dombincoms atralarable is Repuico falance, end of yror Jegurchased Comunoa Sterk: Halancr, brewning of year Stame repurchases Dilher Balanos, rad of yrar Total Pepsice Comamon Shareholders' Equity Nomanatrolling Interests Halance, beginaing of yrat Not income attriturable to doncaitidine interate Bistritsudious 10 averomitroling interents Haiance, rad at gear Metained Fiarning Halation teginning of yeur Comulater thed of avoesting charues Nrt incone attritulabie a ficpicia Cuh disidend declarnd - coenenon" Retirement of putferred tipel Halince, rad of year Accamalated Other Comprehenaive Loss Halances tegginaling of year Outer compreberaive fony/income atmbutatil to PepriCo THamer, rivi al yeat Repurchased Consmon Stock Halation, terithin ine verth Shase rejorchase Ciller. Halaner, tuil al yrar. Toral Repeice Cenumon Sharebodere' Rquicy Noerenirelling Interests Hialune, brecening of yrer Nint incomt attritutable to nancontiolling interests Dintribusions io noincontrulling interiat. Acoulaiticial (inker, ari. Halencr, cod oxi yrar Total Fquity