The Two Companies are Dr. Pepper and Coca-Cola

Your analysis should include the following:

Present a 4 or 5-year trend analysis, using the earliest year as the base year, of (1) net sales, (2) net income. For example, the trend could include 2017, 2016, 2015, 2014, and 2013 (base year). DISCUSS THE SIGNIFICANCE OF THE TREND RESULTS FOR BOTH COMPANIES AND COMPARE.

Compute the 2017 and 2016 (1) profit margin, (2) asset turnover, (3) return on assets, and (4) return on common stockholders equity. DISCUSS THE PROFITABILITY OF BOTH COMPANIES AND COMPARE.

Compute for 2017 and 2016 the (1) debt to total assets and (2) times interest earned ratio. EVALUATE THE SOLVENCY OF BOTH COMPANIES AND COMPARE.

Compute the (1) current ratio, the (2) acid-test (quick) ratio, (3) receivables turnover, and (4) inventory turnover. COMMENT ON THE LIQUIDITY OF BOTH COMPANIES AND COMPARE.

NOTE: If you do not have enough information to compute a ratio, you MUST indicate the ratio and WHY you were unable to compute it.

Prepare a report that presents ALL your computations. The report should be ORGANIZED AND easy to follow (i.e., put your computation in labeled tables like Exhibit A of this document).

Prepare a cover letter to accompany the report. The COVER LETTER should NOT go into detail about formulas and how amounts were determined. Instead, the letter should immediately (in the first paragraph) state the purpose of the analysis and your RECOMMENDATION. The paragraphs to follow should discuss HOW and WHY you make the recommendation. Most importantly, your letter MUST reference the report throughout. Be sure to mention in the first paragraph that you have attached a detailed report on which your recommendation is based.