Question
Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2017. 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, 2017. 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. Select 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 Select Financials and select Income Statement when accessing the Income Statement Select Financials and select Balance Sheet when accessing the Balance Sheet Do the following for KO and PEP for the year ended 12/31/17 only Perform a vertical analysis of the Income Statement for KO and PEP for the year ended 12/31/17. Include in your vertical analysis all of following as a % of total revenue: Cost of Revenue as a % of Total Revenue Gross Profit as a % of Total Revenue Selling, gen and administrative expenses as a % of Total Revenue Operating Income as a % of Total Revenue Net Income as a % of Total Revenue B. Current Ratio C. Quick Ratio D. Accounts Receivable turnover. Assume the total revenue on the Income Statement represents all of the sales on account E. Average collection period F. Merchandise Inventory turnover. Assume the Cost of Revenue on the Income statement represents the Cost of Goods Sold G. Times Interest Earned Ratio H. Rate of Return on Common Stockholders Equity I. Rate of Return on Total Assets J. Debt to Equity Ratio K. Operating-Cash Flow to Current Liabilities Ratio L. Asset Turnover M. Price Earnings Ratio on basic earnings per share as of 12/31/2017. The closing market price can be determined by following these procedures: i.Select Http://www.yahoo.com/ and select Finance at the top. ii.Go to Yahoo! Finance and enter Symbol key KO for Coca-Cola and PEP for Pepsi. Select Historical data and scroll down to the closing price for 12/31/2017. Do this for both KO and PEP You will also need the Earnings per Share from the SEC filings. To access the Earnings Per share: To access SEC filings go to U.S. Securities and Exchange Commission Edgar Company Filings. In the Fast Search select KO for Coke and PEP for Pepsi. Select Form 10K filed on 2/23/18 for Coke and 2/13/18 PEP for Pepsi and select the Interactive Data tab. You will have to scroll down to find the form 10-K. Select Financial Statements and the Consolidated Income and scroll down to the and use the Basic Net Income per Share. 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 how of you should set it up a long with the definition and strength or weakness:
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