Your parents are considering investing in Coca-Cola Co. (KO) common stock. They ask you, as an accounting expert, to make an analysis of the company for them.

Obtain a copy of Coca-Cola’s most recent annual report (10-K) from Annual & Other Reports and complete the following:

1. Make a five-year trend analysis of net sales and net earnings. Comment on the significance of the trend results.

2. For the two most recent years, compute the debt to assets ratio and the times interest earned. How would you evaluate the long-term solvency Coca-Cola Co. (KO)?

3. For the two most recent years, compute the profit margin, asset turnover, return on assets, and return on common stockholders’ equity. How would you evaluate Coca-Cola’s profitability?

4.Using financial sites (i.e., http://www.nasdaq.com, or www.finance.yahoo.com research the beverage industry. List two competitors’ of Coca-Cola. How are they performing in comparison to Coca-Cola?