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please answer asap The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for
please answer asap
The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions). Total current assets Total current liabilities Net sales Cost of goods sold Net income Average (net) accounts receivable for the year Average inventories for the year Average total assets Average common stockholders equity Average current liabilities Average total liabilities Total assets Total liabilities Income taxes Interest expense Net cash provided by operating activities Capital expenditures Cash dividends Coca-Cola $17.551 13,721 30.990 11,088 6,824 3,424 2.271 44,595 22,636 13,355 21,960 48,671 23,872 2,040 355 8,186 1,993 3,800 PepsiCo $12.571 8.756 43.232 20,099 5.946 4,654 2.570 37.921 14.556 8.772 23.466 39,848 23,044 2.100 397 6,796 2,128 2.732 Question 1 of 2 -/50 (b) Compute the following solvency ratios for the two companies. (Round times interest earned to 1 decimal place, e... 15.2 and percentages to o decimal places, eg, 15%.) Coca-Cola PepsiCo (1) Debt to assets ratio 96 % (2) Times interest earned times times (3) Free cash flow $ Which company is more solvent? (c) Compute the following profitability ratios for the two companies. (Round percentages to 1 decimal place.c.3. 15.2% and all other answers to 2 decimal places, e. 15.25.) Coca-Cola PepsiCo 11 Proht margin % % (2) Asset turnover times times (3) Return on assets * % (4) Return on common stockholders equity % Which company has lower profit margin? Which company has a higher profitability overall Step by Step Solution
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