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This is for my Managerial Accounting class. Its for Managerial Accounting class. Coca-Cola vs Pepsi Financial Analysis Create a vertical (same-size) & horizontal analysis (change

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This is for my Managerial Accounting class.
Its for Managerial Accounting class.
Coca-Cola vs Pepsi Financial Analysis Create a vertical (same-size) & horizontal analysis (change in dollars and percent of change) for Coca-Cola and Pepsi, for 2016 and 2017. Also, calculate the following ratios for Coca-Cola and Pepsi, for 2016 and 2017: current ratio & quick ratio - show calculations accounts receivable turnover & days sales in receivables inventory turnover & days in inventory gross profit margin ratio, profit margin & return on investment After completing all the necessary calculations and analyses, explain what that information tells us about the companies: 1. Write a comparison of each company's 2016's current & quick ratio to its 2017 ratios, and a comparison of Pepsi's current & quick ratio to Coca-Cola's. Which company seems to be more liquid? What are the advantages and disadvantages of liquidity? 2. Write a comparison of each company's 2016's accounts receivable turnover and days sales in receivables to its 2017 ratios, and a comparison of Pepsi's accounts receivable turnover and days sales in receivables to Coca- Cola's. Which of the two seems to be doing a better job with receivables? How does this collection process affect the overall success of the companies? 3. Write a comparison of each company's 2016's inventory turnover and days in inventory to its 2017 ratios, and a comparison of Pepsi's inventory turnover and days in inventory to Coca-Cola's. Calculate for both companies for 2016 and 2017. Write a paragraph comparing 2016 with 2017 and Coca-Cola with Pepsi using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? 4. Indicate which company shows the best prospects for future profits and explain in detail why you think the ratios support your observation. -gross profit 5. Write a summary comparison of each company's 2016's vertical analysis to its 2017 analysis, and a summary comparison of Pepsi's vertical analysis to Coca-Cola's. Explain why vertical analyses are beneficial. 6. Write a summary comparison of each company's 2016's horizontal analysis to its 2017 analysis, and a summary comparison of Pepsi's horizontal analysis to Coca-Cola's. What do the changes indicate about the companies' improvement or lack thereof between 2016 and 2017? Explain why one company is better than the other. Based on all of your calculations and observations described above, make a recommendation as to which company would be a better investment. Give the reasons for your conclusion. Coca-Cola vs Pepsi Financial Analysis Create a vertical (same-size) & horizontal analysis (change in dollars and percent of change) for Coca-Cola and Pepsi, for 2016 and 2017. Also, calculate the following ratios for Coca-Cola and Pepsi, for 2016 and 2017: current ratio & quick ratio - show calculations accounts receivable turnover & days sales in receivables inventory turnover & days in inventory gross profit margin ratio, profit margin & return on investment After completing all the necessary calculations and analyses, explain what that information tells us about the companies: 1. Write a comparison of each company's 2016's current & quick ratio to its 2017 ratios, and a comparison of Pepsi's current & quick ratio to Coca-Cola's. Which company seems to be more liquid? What are the advantages and disadvantages of liquidity? 2. Write a comparison of each company's 2016's accounts receivable turnover and days sales in receivables to its 2017 ratios, and a comparison of Pepsi's accounts receivable turnover and days sales in receivables to Coca- Cola's. Which of the two seems to be doing a better job with receivables? How does this collection process affect the overall success of the companies? 3. Write a comparison of each company's 2016's inventory turnover and days in inventory to its 2017 ratios, and a comparison of Pepsi's inventory turnover and days in inventory to Coca-Cola's. Calculate for both companies for 2016 and 2017. Write a paragraph comparing 2016 with 2017 and Coca-Cola with Pepsi using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? 4. Indicate which company shows the best prospects for future profits and explain in detail why you think the ratios support your observation. -gross profit 5. Write a summary comparison of each company's 2016's vertical analysis to its 2017 analysis, and a summary comparison of Pepsi's vertical analysis to Coca-Cola's. Explain why vertical analyses are beneficial. 6. Write a summary comparison of each company's 2016's horizontal analysis to its 2017 analysis, and a summary comparison of Pepsi's horizontal analysis to Coca-Cola's. What do the changes indicate about the companies' improvement or lack thereof between 2016 and 2017? Explain why one company is better than the other. Based on all of your calculations and observations described above, make a recommendation as to which company would be a better investment. Give the reasons for your conclusion

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