Use the provided Financiai Data (Excel flee) for Coke and Popsi to complete the following analysis: 1. Calculate the current ratio and quick ratio for both companies for 2020 and 2021 . Write a paragraph describing what these ratios indicate about the liquidity of each company in 2021 compared to 2020. Write a paragraph describing what these ratios indicate about the liquidity of Pepsi compared to Coke for both years. Which company seems to be more liquid? What are the advantages and disadvantages of liquidity? 2. Calculate the accounts receivable tumover and the average collection period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate the effectiveness of their accounts receivable collections. Which of the two companies seem to be doing a better job with receivabies? How does this collection process affect the overall success of the company? 3. Calculate the inventory turnover and the average sales period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke 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. Calculate the gross margin percentage, net profit margin percentage, and return on assets for both companies for 2020 and 2021. Explain in a paragraph what these ratios show about each company's profitability compared to the year before and compared to each other. Indicate which company shows the best prospects for future profits and explain in detail why you think the ratios support your observations. 5. Prepare a vertical analysis on the income statement and the balance sheet for Pepsi and Coca Cola for 2020 and 2021 . Write a paragraph highlighting what you have learned from the percentages of sales or total assets calculated from the finsncial statements. Write also about the comparison between 2020 and 2021 and between Coke and Pepsi. 6. Prepare a horizontal analysis on the income statement and the balance sheet for Pepsi and Coca Cola for 2020 and 2021. Be sure to calculate the change in dollars and percentages for all of the revenves and expenses. What do the changes indicate about Pepsi's success in 2021 relative to 2020? Do the same comparison for Coke's income statement. What do the changes indicate about Coke's improvement or lack thereof between 2021 and 2020? With this comparison of both companies over time now compare Coke v5. Pepsi and explain why one company seems to do better than the other, financially speaking. 7. 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. - Cover Page (include your name, the course name and number, professor's name, assignment name, and date of submission) - Introduction (One to two paragraphs briefy introducing the assignment and what your work will be comprised of) - Body (This is lkely several pages answering ALL questions, show your work, explein your analysis) NOTE: If you use Excel for your calculations, copylpaste your work in this section where appropriate - Conclusion (One to two paragraphs summarizing your analysis and conclusions) - Reference Page or Works Cited Hintsotes: - All sales are on credit. Therefore, net sales or net revenue, or net operating revenue are considered Credit Sales. - Average Collections Period and Average Sales Period are "in days". Therefore, round up to the next full day. Example, a calculated average collections period of 12.47 , should be rounded up to 13 days. - Gross Profit percentage, net profit percentage, and ROA must be presented as a percentage. Example, ROA is .4742 , show it as a percentage, 47.42%, rounded to 2 decimal places if needed. - All other ratios are times ratios. That is, X to 1. Example, a calculated current ratio of 1.32 means 1.32 to 1 . There is no need to add the "to 1 " in your presentation of these ratios, however. PEPSICO Consolidated Statement of Income - USO (\$) shares in Mitlions, 5 in Millioes Income Statement [Abstract] Net Revenue 20212020201912Monthinded Cost of sales Gross profit Selling, general and administrative expenses Operating Protit Other pension and retiree medical benefits incoene/lexpensel Net interest expense and other Income before income taxes Provision for income taxes Net income Less: Net income attributable to noncontrolling interests Net income Attributable to Pepsico Net income Actributable to PepsiCo per Common Share Basic Diluted Weighted-average common shares outstanding Basic Diluted