The following table provides selected financial information for PepsiCo, Inc. and The Coca-Cola Company for the fiscal year 2023:

($ millions)	PepsiCo, Inc.	The Coca-Cola Company
Net sales	$86,000	$66,000
Cost of sales	44,000	30,000
Gross profit	42,000	36,000
Operating expenses:
Selling, general, and administrative	15,500	13,500
Research and development	1,200	1,000
Operating income	25,300	21,500
Interest and other (income) expense	2,500	2,000
Interest and investment income	(1,000)	(700)
Earnings before provision for income taxes	23,800	20,200
Provision for income taxes	6,000	5,200
Net earnings	$17,800	$15,000

Required: a. Calculate the return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for PepsiCo, Inc. and The Coca-Cola Company. Assume a tax rate of 25%. b. Disaggregate the ROA into profit margin (PM) and asset turnover (AT) for both companies. Discuss the primary factors affecting their ROA. c. Analyze the trend in advertising expenses over the past five years for both companies. How does it impact their market share and revenue growth? d. Evaluate the current ratio and quick ratio for PepsiCo, Inc. and The Coca-Cola Company. What does it reveal about their short-term liquidity? e. Compare the dividend payout ratios for PepsiCo, Inc. and The Coca-Cola Company. What insights can be drawn regarding their dividend policies?