PLEASE TYPE IN THE FORMULAS USED FOR THE ANSWERS!

Attached is an excel file with both Pepsi's Balance sheet and income statement (tab 2) and Coca-Cola's Balance sheet and Income Statement (tab 3).

In tab 1 are the requirements of this case

1) In tab 1 are the ratios (with excel formulas) calculated for Pepsi-Co, Inc. for you - all you need to do is calculate the Coca-Cola Company ratios and then answer the questions below.

1. Using the financial data for the three years for The Coca-Cola Company discuss the company's:

a. Ability to pay current liabilities;

b. Ability to sell inventory and collect receivables;

c. Ability to pay long-term debt; and

d. Profitability.

2. Using the financial data for the three years for PepsiCo, Inc., discuss the company's

a. Ability to pay current liabilities;

b. Ability to sell inventory and collect receivables;

c. Ability to pay long-term debt; and

d. Profitability.

3. Compare Coca-Colas financial position to PepsiCos financial position throughout the three

years given. How do the two companies compare in the following areas?

a. Ability to pay current liabilities;

b. Ability to sell inventory and collect receivables;

c. Ability to pay long-term debt; and

d. Profitability.

4. What conclusions can you draw from your analysis of the two companies? Which company do

you think is in a stronger financial position?

Below are the ratios (with excel formulas) calculated for Pepsi-Co, Inc. for you - all you need to do is calculate the Coca-Cola Company ratios Notes: Debt ratio =TL/TA Inv. TO= CGS/Avg. Inv. Acciounts receivable TO=SALES/Avg. AR Return on Assets =NI+{ Interest Expense (1-Tax) }/ Avg TA Operating Income \%=operatinig income /SALES REVENUE PepsiCo Common Shareholders' Equity Common stock, par value 12/3c per share (authorized 3,600 shares, issued, net of repurchased common stock at par value: 1,380 and 1,391 shares, respectively) Additional Paid in Capital, Common Stock Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Income (Loss), Net of Tax Treasury Stock, Value TOTAL PepsiCo common shareholders' equity Noncontrolling interests Total equity Total liabilities and Equity \begin{tabular}{|r|r|r|} \hline$23 & $23 & \\ & & 23 \\ \hline$3,910 & $3,886 & 3,953 \\ \hline 63,443 & 61,946 & 59,947 \\ \hline$(15,476) & $(14,300) & $(15,119) \\ \hline(38,446) & (36,769) & (34,286) \\ \hline$13,454 & $14,786 & $14,518 \\ \hline 98 & 82 & 84 \\ \hline$13,552 & $14,868 & $14,602 \\ \hline 92,918 & 78,547 & 77,648 \\ \hline & & \\ \hline \end{tabular} Ratio calculations Pepsi balance sheet \& income CocaCola balance sheet \& Income Consolidated Statement of Income - USD (\$) shares in Millions, $ in Millions 12 Months Ended Dec. 26, 2020 Dec. 28,2019 Dec. 29, 2018 Income Statement [Abstract] Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits income/(expense) Net interest expense and other Income before income taxes Provision for/(benefit from) income taxes (See Note 5) Net income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo \begin{tabular}{|r|r|r|} \hline 70,372 & 67,161 & 64,661 \\ \hline 31,797 & 30,132 & 29,381 \\ \hline 38,575 & 37,029 & 35,280 \\ \hline 28,495 & 26,738 & 25,170 \\ \hline 10,080 & 10,291 & 10,110 \\ \hline 117 & (44) & 298 \\ \hline(1,128) & (935) & (1,219) \\ \hline 9,069 & 9,312 & 9,189 \\ \hline 1,894 & 1,959 & (3,370) \\ \hline 7,175 & 7,353 & 12,559 \\ \hline 55 & 39 & 44 \\ \hline 7,120 & 7,314 & 12,515 \\ \hline \end{tabular} Net Income Attributable to PepsiCo per Common Share Basic Diluted Weighted-average common shares outstanding Basic Diluted \begin{tabular}{|r|r|r|} \hline 5.14 & 5.23 & 8.84 \\ \hline 5.12 & 5.20 & 8.78 \\ \hline & & \\ \hline 1,385 & 1,399 & 1,415 \\ \hline 1,392 & 1,407 & 1,425 \\ \hline \end{tabular} NOTES: Tax rate= Provision for Income Taxes/ Income before taxes \begin{tabular}{l|l|l} Dec. 31,2020 & Dec. 31,2019 & Dec. 31,2018 \\ \hline \end{tabular} CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade accounts receivable, less allowances of $524 and $501, respectively Inventories Prepaid expenses and other assets TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS Deferred Tax Assets, Net, Noncurrent PROPERTY, PLANT AND EQUIPMENT - net TRADEMARKS WITH INDEFINITE LIVES BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS \begin{tabular}{|r|r|r|} \hline$6,795 & $6,480 & $9,077 \\ \hline 1,771 & 1,467 & 2,025 \\ \hline 8,566 & 7,947 & 11,102 \\ \hline 2,348 & 3,228 & 5,013 \\ \hline 3,144 & 3,971 & 3,685 \\ \hline 3,266 & 3,379 & 3,071 \\ \hline 1,916 & 1,886 & 2,059 \\ \hline 19,240 & 20,411 & 24,930 \\ \hline 19,273 & 19,025 & 19,412 \\ \hline 812 & 854 & 867 \\ \hline 6,184 & 6,075 & 4,148 \\ \hline 2,460 & 2,412 & 2,674 \\ \hline 10,777 & 10,838 & 9,598 \\ \hline 10,395 & 9,266 & 6,682 \\ \hline 0 & 109 & 51 \\ \hline 17,506 & 16,764 & 14,109 \\ \hline 649 & 627 & 745 \\ \hline 87,296 & 86,381 & 83,216 \\ \hline \end{tabular} CURRENT LIABILITIES Accounts payable and accrued expenses Notes and Loans Payable, Current Current maturities of long-term debt Accrued income taxes TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFERRED INCOME TAXES \begin{tabular}{|r|r|r|} \hline 11,145 & 11,312 & 9,533 \\ \hline 2,183 & 10,994 & 13,835 \\ \hline 485 & 4,253 & 5,003 \\ \hline 788 & 414 & 411 \\ \hline 14,601 & 26,973 & 28,782 \\ \hline 40,125 & 27,516 & 25,376 \\ \hline 9,453 & 8,510 & 7,646 \\ \hline 1,833 & 2,284 & 2,354 \\ \hline \end{tabular} THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; authorized 11,200 shares; issued 7,040 shares Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost 2,760 and 2,772 shares, respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY \begin{tabular}{|r|r|r|} \hline 1,760 & 1,760 & 1,760 \\ \hline 17,601 & 17,154 & 16,520 \\ \hline 66,555 & 65,855 & 63,234 \\ \hline(14,601) & (13,544) & (12,814) \\ \hline(52,016) & (52,244) & (51,719) \\ \hline 19,299 & 18,981 & 16,981 \\ \hline 1,985 & 2,117 & 2,077 \\ \hline$21,284 & $21,098 & $19,058 \\ \hline$87,296 & $86,381 & $83,216 \\ \hline \end{tabular} CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions Revenues Cost of Goods and Services Sold GROSS PROFIT Selling, General and Administrative Expense Other Cost and Expense, Operating OPERATING INCOME Interest income Interest expense Equity income (loss) - net Other income (loss) - net INCOME BEFORE INCOME TAXES Income taxes CONSOLIDATED NET INCOME Net Income (Loss) Attributable to Noncontrolling Interest NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY \begin{tabular}{|r|r|r|} \hline Dec. 31, 2020 & Dec. 31, 2019 & Dec. 31,2018 \\ \hline 33,014 & 37,266 & 34,300 \\ \hline 13,433 & 14,619 & 13,067 \\ \hline 19,581 & 22,647 & 21,233 \\ \hline 9,731 & 12,103 & 11,002 \\ \hline 853 & 458 & 1,079 \\ \hline 8,997 & 10,086 & 9,152 \\ \hline 370 & 563 & 689 \\ \hline(1,437) & (946) & (950 \\ \hline 978 & 1,049 & 1,008 \\ \hline 841 & 34 & (1,674 \\ \hline 9,749 & 10,786 & 8,225 \\ \hline 1,981 & 1,801 & 1,749 \\ \hline 7,768 & 8,985 & 6,476 \\ \hline 21 & 65 & 42 \\ \hline 7,747 & 8,920 & 6,434 \\ \hline & & \\ \hline \end{tabular} BASIC NET INCOME PER SHARE (in dollars per share) DILUTED NET INCOME PER SHARE (in dollars per share) AVERAGE SHARES OUTSTANDING (in shares) Effect of dilutive securities (in shares) AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) \begin{tabular}{|r|r|r|} \hline 1.8 & 2.09 & 1.5 \\ \hline 1.79 & 2.07 & 1. \\ \hline 4295 & 4276 & 425 \\ \hline 28 & 38 & 4 \\ \hline 4323 & 4314 & 429 \\ \hline \end{tabular} NOTES: Tax rate= Provision for Income Taxes/ Income before taxes