Copy-Case 2 Coke vs Pepsi Smr 2023.pdf Case 1: Coke versus Pepsi: Which is the "Real Thing"? Due Date: July 16th (via Canvas) Potential Marks: 50 Marks (45 Marks for financial analysis and 5 Marks for a well-organized and easy to understand MS Excel) Using the financial statements provided on canvas, and the knowledge you have gained in reading the relevant chapters on financlal statement analysis (Chapters 3 and 11), provide a comparative financial analysis of Coke and Pepsi. Be sure to include an analysis of liquidity, internal activity, profitability and financial leverage and Return on Equity (ROE). 1. In your opinion, which management team is doing a "better" job in managing their business? a. Justify your answer using your financial analysis. 2. Discuss the operating cycle ratios that you have calculated for each of these firms. Do these ratios demonstrate sound financial acumen of either management team? 3. Which ratio would you use to assess the financial leverage that each company has taken on? a. Relatively speaking, which company is more leveraged? Explain your answer. b. What potentially would need to happen for leverage to become a negative in the business operations of either firm? 4. Based solely on the financial ratios, which company would you invest in? a. Justify you answer using at least 1 income statement ratio, and 2 balance sheet ratios that investors commonly use to assess an equity investment. 5. Using the Dupont Equation, explain what would be required for each of these companies to improve its respective ROE. Provide a well written business professional memo explaining your analytical work. Include a wellorganized, and easy to understand, MS Excel spreadsheet showing your financial analysis