Question
Numerous companies have established home pages on the internet. Examine the home pages of any two companies in the same industry and country, download the
Numerous companies have established home pages on the internet. Examine the home pages of any two companies in the same industry and country, download the financial reports for the last three years and answer the following easy questions ( the two companies are pepsi and Coca Cola)
1.What was the net income in the two companies during the last three years? Graph the results of each company separate and comment on any trends. What are the reasons behind the increase or decrease in the net income?
2.What were the main sources of funds in the two companies during the last three years? Graph the results for each company separate and comment on any trends. What are the reasons behind the increase or decrease in the sources of funds?
3.What were the main uses of funds in the two companies during the last three years? Graph the results for each company separate and comment on any trends. What are the reasons behind the increase or decrease in the uses of funds?
4.Compare between the net income of both companies during the last three years. Graph the results of both companies together in one figure and comment on any trends. What are the reasons behind the difference in companies' profitability?
5.Compare between the total assets of both companies during the last three years. Graph the results of both companies together in one figure and comment on any trends. What are the reasons behind the difference in companies' total assets?
6.Compare between the total liabilities of both companies during the last three years. Graph the results of both companies together in one figure and comment on any trends. What are the reasons behind the difference in companies' total liabilities?
7.Compare between the total owner equity of both companies during the last three years. Graph the results of both companies together in one figure and comment on any trends. What are the reasons behind the difference in companies' total owner equity?
8.Based on your answers in questions 5, 6,7 and 8 above, write brief memo to your client (investor) summarizing the financial performance and financial position of the two companies and explain which company you recommend for investment? Why?
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