Question
Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2021. Follow the instructions below to access each companys
Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2021. Follow the instructions below to access each companys information and perform a financial analysis based on the financial measures we have learned in this course. 1. Select Http://www.yahoo.com/ and then select Finance. In the Search section at the top of the screen select KO for Coca-Cola and PEP for Pepsi 2. Select Financials and select Income Statement when accessing the Income Statement 3. Select Financials and select Balance Sheet when accessing the Balance Sheet 4. Do the following for KO and PEP for the year ended 12/31/21 only Perform a vertical analysis of the Income Statement for KO and PEP for the year ended 12/31/21. Include in your vertical analysis all of following as a % of total revenue: o Cost of Revenue as a % of Total Revenue o Gross Profit as a % of Total Revenue o Selling, gen and administrative expenses as a % of Total Revenue o Operating Income as a % of Total Revenue o Net Income as a % of Total Revenue Return on assets Debt Ratio Current Ratio Acid-Test Ratio Accounts Receivable turnover. Assume the total revenue on the income statement represents all sales on account for the year Days Sales in Receivables Merchandise Inventory turnover. Assume the Cost of Revenue on the Income Statement is the same as the Cost of Goods Sold Days Sales in Inventory In preparing the vertical analysis and other financial analysis above; define each measure and identify the strengths and weaknesses of KO and PEP as related to each other. Below is an example of you should set it up. Working Capital KO PEP Current Assets $ 22,545,000 $ 21,783,000 - Current Liabilities $ 19,950,000 $ 26,220,000 Net Working Capital = $ 2,595,000 $ (4,437,000) Strength or Weakness Working Capital measures the ability of a company to meet its short-term obligations with current assets. Coke is performing a little better since their current assets exceed their current liabilities contrasted with Pepsis negative working capital.
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