ECON 250.01

FINANCIAL PROJECT

For this project, you will have access to PepsiCo, Inc.s financial statements and Coca-Cola Companys financial statements for the periods ending December 26, 2020 and December 31, 2020. For this Financial Project you will analyze the financial statements and will demonstrate your ability to use your analysis to draw conclusions relative to each Companys financial health.

Instructions:

Each question will require you to extract data from the financial statements. PepsiCos main financial statements begin on Page 64 of their annual report. Coca-Colas main financial statements begin on Page 58 of their annual report. There are 2 types of questions within the project:

The first type of question(s) will require you to compute ratios and changes in various financial statement items. For each question, enter your answer in the tables provided. Show your calculations to ensure partial credit.

The second type that will be a follow on question after the computation question(s) will ask you to draw conclusions relative to the data. The expectation is that you will be able to take the data you have extracted and draw some conclusions as to the related health of each company as compared to each other. Therefore, for each question that asks you to draw conclusions you will provide, at minimum, 2 responses.

* The first response should indicate the quantitative difference between each company (i.e. PepsiCos total assets are 56% greater than Coca-Colas, but Coca-Colas net revenues were 25% greater than PepsiCos).

* The second response should provide the So what quantitative analysis of the data. For example, what trends do you see in the data (PepsiCos Net Revenues have increased 25% from 2019 to 2020) and why it is important to explain the So What and why does the user of the data care about the differences. What overall conclusions can you draw from the data? (i.e. Although the two companies have comparable Net Revenue, PepsiCo appears to be able to create more profit by keeping their operating expenses low. Looking at prior years, this appears to be a typical trend for Coca-cola and PepsiCo.)

1. Based on the information contained in these financial statements, determine the following for each company.

a. Total assets at December 26, 2020, for PepsiCo and for Coca-Cola at December 31, 2020.

b. Accounts (notes) receivable, net at December 26, 2020, for PepsiCo and at December 31, 2020, for Coca-Cola.

c. Net revenues for year ended in 2020 for both companies.

d. Net income for year ended in 2020 for both companies.

	PepsiCo	Coca-Cola
Total Assets
Accounts (notes) Receivable
Net Revenues
Net Income (attributable to the Company)