The Coca-Cola Company and PepsiCo, Inc., provide refreshments to every corner of the world. Selected data from the 2014 consolidated financial

The Coca-Cola Company and PepsiCo, Inc., provide refreshments to every corner of the world. Selected data from the 2014 consolidated financial statements for the Coca-Cola Company and for PepsiCo, Inc., are presented here (in millions). Coca-ColaPepsiCoTotal current assets$12,551$12,571Total current liabilities 13,721 8,756Net Sales 30,99043,332Cost of Goods Sol 11,088 20,099Net income 6,8245,946Average (net) accounts receivable for the year 3,424 4,654Average inventories for the year 2,271 2,570Average total assets 44,59537,921Average common stockholders' equity22,63614,556Average current liabilities 13,335 8,772Average total liabilities21,96023,466Total assets 48,67139,848Total liabilities 23,87223,044Income taxes 2,040 2,100Interest expense 355 397Net cash provided by operating activities 8,186 6,796Capital expenditures 1,993 2,128Cash dividends3800 2,732Instructions: ACompute the following liquidity ratios for 2014 for Coca-Cola and PepsiCo and comment on the relative liquidity of the two competitors. BCurrent ratio CAccounts receivable turnove DAverage collection period EInventory turnover FDays in inventory GCurrent cash debt coverage. HCompute the following solvency ratios for the two companies and comment on the relative solvency of the two competitors. IDebt to asset ratio JTimes interest earned KCash debt coverage LFree cash flow. MCompute the following profitability ratios for the two companies and comment on the relative probability of the two competitors. NProfit margin OAsset turnover PReturn on assets QReturn on common stockholders' equity. RInterpret your findings for the ratio comparatives analysis for Coca-Cola and PepsiCo. SEvaluate what, if any, options with regard to financial activities should Coca-Cola and PepsiCo consider (i.e., how can these companies improve financial performance)? What impact would each of these have on the above ratios? 5-7 pages. 12 in time new roman. 3 references