Please use the 2011 Financial Statements for Coca-Cola and Pepsi for this analysis.

1. What are the primary lines of business of these two companies as shown in their notes to the financial statement?

2. Which company has the dominant position in beverage sales?

3. What are the gross profits, net income, EBIT, EBITDA and free cash flow (FCF) for these two companies?

Compute both companies'

current ratio

quick ratio

total debt ratio

debt-equity ratio

total asset turnover

inventory turnover

days sales in inventory

profit margin on sales

return on assets

return on equity Fully explain what each ratio is telling you.

4. What ratios do each of these companies use in the Management's Discussion and Analysis section of the annual report to explain their financial condition related to debt financing?