EINANCIAL RATIOS Use the information gathered from Coca-Cola Company is on the previous pages to calculate the following ratios for Coca-Cola Company. Do not try to look theme up on the website. Instead you must make the calculation yourself Inventory Turnover (Cost of Goods Sold / Average Inventory) Average Inventory - (Beginning Inventory +Ending Inventory)/2 Gross profit % (Gross Profit/Revenues) 100% Debt Ratio (Total Liabilities / Total Asset) Current Ratio (Current Asset / Current Liabilities) Compare Coca-Cola Company to its close competitor PepsiCo Inc. Now open up the income statement and balance sheet for PepsiCo Inc.: PepsiCo Inc. Income Statement: Page 4/62 on Q2 report; 4/65 on Q3 report. PepsiCo Inc. Balance Sheet: Page 8/62 on Q2 report; 8/65 on Q3 report. Look up the following income statement information: Total Quarter Revenues (9/05/2020) Total Quarter Revenues (6/13/2020) Quarter Gross Profit (9/05/2020) Look up the following Quarterly balance sheet information for 9/05/2020: Total Assets Total Liabilities Current Assets Current Liabilities Now use these 7 values (above) to calculate the following ratios for PepsiCo Inc. in order to compare them to Coca-Cola Company. Use the same calculation methods as for Coca- Cola Company Revenue Growth Gross Profits Debt Ratio Current Ratio Based on a comparison of these two ratios between Coca-Cola Company and PepsiCo Inc. which company seems to have better liquidity, which has better margin, which has better solvency, and which has better revenue growth? Enter the Company names below. Revenue Growth? Gross Profit? Solvency? (Debt Ratio, low is good) Liquidity? (Current Ratio, high is good) 2nd PART OF THE PROJECT Financials From this page, you can view the recent quarterly or annual financial statements of the company. In order to compare Coca-Cola Company to a close competitor we will use data for the quarter ending 9/25/2020. Open the 10-Q of Coca-Cola Company and PepsiCo Inc. (link provided at the beginning of this project) and click on income statement or balance sheet of Coca-Cola Company as requested below Coca-Cola Company Income Statement: Page 5/89 on Q2 report; 5/96 on Q3 report. Coca-Cola Company Balance Sheet: Page 7/89 on Q2 report; 7/96 on Q3 report. PepsiCo Inc. Income Statement: Page 4/62 on Q2 report; 4/65 on Q3 report. PepsiCo Inc. Balance Sheet: Page 8/62 on Q2 report; 8/65 on Q3 report. Notice that all numbers are in millions of dollars in the following part of the project. Write them down on your worksheet just as they are. For example, if it says $7,000, just write $7,000 or $7,000 million as your final answer, do not write $7,000,000,000. Questions 1 through 16 pertain to Coca-Cola Company. EINANCIAL RATIOS Use the information gathered from Coca-Cola Company is on the previous pages to calculate the following ratios for Coca-Cola Company. Do not try to look theme up on the website. Instead you must make the calculation yourself Inventory Turnover (Cost of Goods Sold / Average Inventory) Average Inventory - (Beginning Inventory +Ending Inventory)/2 Gross profit % (Gross Profit/Revenues) 100% Debt Ratio (Total Liabilities / Total Asset) Current Ratio (Current Asset / Current Liabilities) Compare Coca-Cola Company to its close competitor PepsiCo Inc. Now open up the income statement and balance sheet for PepsiCo Inc.: PepsiCo Inc. Income Statement: Page 4/62 on Q2 report; 4/65 on Q3 report. PepsiCo Inc. Balance Sheet: Page 8/62 on Q2 report; 8/65 on Q3 report. Look up the following income statement information: Total Quarter Revenues (9/05/2020) Total Quarter Revenues (6/13/2020) Quarter Gross Profit (9/05/2020) Look up the following Quarterly balance sheet information for 9/05/2020: Total Assets Total Liabilities Current Assets Current Liabilities Now use these 7 values (above) to calculate the following ratios for PepsiCo Inc. in order to compare them to Coca-Cola Company. Use the same calculation methods as for Coca- Cola Company Revenue Growth Gross Profits Debt Ratio Current Ratio Based on a comparison of these two ratios between Coca-Cola Company and PepsiCo Inc. which company seems to have better liquidity, which has better margin, which has better solvency, and which has better revenue growth? Enter the Company names below. Revenue Growth? Gross Profit? Solvency? (Debt Ratio, low is good) Liquidity? (Current Ratio, high is good) 2nd PART OF THE PROJECT Financials From this page, you can view the recent quarterly or annual financial statements of the company. In order to compare Coca-Cola Company to a close competitor we will use data for the quarter ending 9/25/2020. Open the 10-Q of Coca-Cola Company and PepsiCo Inc. (link provided at the beginning of this project) and click on income statement or balance sheet of Coca-Cola Company as requested below Coca-Cola Company Income Statement: Page 5/89 on Q2 report; 5/96 on Q3 report. Coca-Cola Company Balance Sheet: Page 7/89 on Q2 report; 7/96 on Q3 report. PepsiCo Inc. Income Statement: Page 4/62 on Q2 report; 4/65 on Q3 report. PepsiCo Inc. Balance Sheet: Page 8/62 on Q2 report; 8/65 on Q3 report. Notice that all numbers are in millions of dollars in the following part of the project. Write them down on your worksheet just as they are. For example, if it says $7,000, just write $7,000 or $7,000 million as your final answer, do not write $7,000,000,000. Questions 1 through 16 pertain to Coca-Cola Company