The Coca-Cola Company and PepsiCo, Inc., are fierce competitors in the beverage and snack markets. A perennial

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The Coca-Cola Company and PepsiCo, Inc., are fierce competitors in the beverage and snack markets. A perennial question among consumers is "Coke or Pepsi"? In this case, we will be looking at the financial positions of both companies to answer the question of which company is in a stronger financial position, Coke or Pepsi.
Following is a table of various financial data and ratios for both Coca-Cola and PepsiCo. The data are arranged in alphabetic order.
The Coca-Cola Company Selected Financlal Data For years ended December 31 PepsICo, Inc. Selected Financlal Data For year

Requirements
1. Rearrange the data and ratios into a report format that groups similar data and ratios together, to make it easier to analyze the data.
2. Using the given financial data for The Coca-Cola Company, discuss the company's:
a. Ability to pay current liabilities;
b. Ability to sell inventory and collect receivables;
c. Ability to pay long-term debt; and
d. Profitability.
3. Using the given financial data for PepsiCo, Inc., discuss the company's:
a. Ability to pay current liabilities;
b. Ability to sell inventory and collect receivables;
c. Ability to pay long-term debt; and
d. Profitability.
4. Now compare Coca-Cola's financial position to PepsiCo's financial position. How do the two companies compare in the following areas?
a. Ability to pay current liabilities
b. Ability to sell inventory and collect receivables
c. Ability to pay long-term debt
d. Profitability
5. What conclusions can you draw from your analysis of the two companies? Which company do you think is in a stronger financial position?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

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