I want you take everything we have learned about debits, credit, and the basic accounting equation to analyze two companies’ financial statements.
You will assess the financial statements of Pepsico and The Coca Cola company. You will be required to perform calculations and draw conclusions from the data you generate. Your final deliverable will be a 2-3 page written report .
Complete the calculations. Determine the percentage increase (decrease) in net sales and net income, the percentage increase in total assets and total common stockholder’s equity, and the basic earnings per share and price earnings ratio as detailed in your scenario. You should submit these calculations as an appendix to your written report.
Write your report. In this 2-3 page paper you should answer the following question: What conclusions concerning the two companies can be drawn from the data you calculated? In drafting your report consider each of the calculations mentioned above. You analysis should address both operational and strategic aspects of the case.
Comparative Analysis Problem: PepsiCo, Inc. vs. The Coca-Cola Company
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.
(a) Based on the information contained in these financial statements, determine each of the following for each company.
1. The percentage increase (decrease) in (i) net sales and (ii) net income from 2018 to 2019.
2. The percentage increase in (i) total assets and (ii) total common stockholders’ (shareholders’) equity from 2018 to 2019.
3. The basic earnings per share and price-earnings ratio for 2019. (For both PepsiCo and Coca-Cola, use the basic earnings per share.) Coca-Cola’s common stock had a market price of $55.35 at the end of fiscal-year 2019, and PepsiCo’s common stock had a market price of $137.54.
(b) What conclusions concerning the two companies can be drawn from these data?
