The following information was summarized from the 2010 and 2009 consolidated statements of income of The Coca-Cola Company and Subsidiaries (for years ended December 31 each year) and PepsiCo, Inc. and Subsidiaries (for years ended December 25, 2010, and December 26, 2009).

Required
1. Calculate the gross profit ratios for Coca-Cola and PepsiCo for 2010 and 2009.
2. Which company appears to be performing better? What factors might cause the difference in the gross profit ratios of the two companies? What other information should you consider to determine how these companies are performing in this regard?

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2010 2009 in Millions Coca-Cola PepsiCo SalesCost of Goods SoldSalesCost of Goods Sold** $35,119 57,838 $12,693 26,575 $30,990 43,232 $11,088 20,099