Problem 4 (30 points)

Evaluate the financial performance of Coca-Cola; (KO) and Pepsi (PEP) for the year ended December 31, 2019. Follow the instructions below to access each company's information and perform a financial analysis based on the financial measures we have learned in this course.

1.SelectHttp://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

2.Select "Financials" and select Income Statement when accessing the Income Statement

3.Select "Financials" and select Balance Sheet when accessing the Balance Sheet

4.Do the following for KO andPEP for the year ended 12/31/19 only

Perform a vertical analysis of the Income Statement for KO and PEP for the year ended 12/31/19.

Include in your vertical analysis all of following as a % of total revenue:

oCost of Revenue as a % of Total Revenue

oGross Profit as a % of Total Revenue

oSelling, gen and administrative expenses as a % of Total Revenue

oOperating Income as a % of Total Revenue

oNet Income as a % of Total Revenue

Current Ratio

Accounts Receivable turnover.Assume the total revenue on the income statement represents all sales on account for the year

Average collection period

Merchandise Inventory turnover.Assume the Cost of Revenue on the Income Statement is the same as the Cost of Goods Sold

Debt to Asset Ratio

Return on Assets Ratio

Asset Turnover

In preparing the vertical analysis and other financial analysis above; define each measure and identify the strengths and weaknesses ofKOandPEPas related to each other. Below is an example of you should set it up.