perform research and analysis on competing companies (Coca Cola and Pepsico), accounting homework help

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ZON33615

Business Finance

Description

The activity requires students to perform research and analysis on competing companies (Coca Cola and Pepsico) and the potential implications of international standards. This real-world analysis is key to understanding how a company's profitability, liquidity, and solvency can be useful for all users. Students also learn to analyze financial statements and use managerial tools to make decisions from an investor's and creditor's standpoint.

Assignment Steps

Resources: U.S. Securities and Exchange Commission (SEC), websites such as Yahooo Finance, Annual Reports (AnnualReports.com) and Morningstar.

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Research Coca Cola and Pepsico (recommended using Yahoo Finance following steps provided for Week 1 Financial Statements Assignment) on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.

Develop a minimum 525-word examination of the financial statements and include the following:

  • Make a 5-year trend analysis for each company, using 2012 as the base year, of:
    • Net sales.
    • Net income. Discuss the significance of the trend results.
  • Compute for 2016 and 2015 the:
    • Debt to assets ratio.
    • Times interest earned. How would you evaluate each company's solvency?
  • Compute for 2016 and 2015 the:
    • Profit margin.
    • Return on assets.
    • Return on common stockholders' equity. How would you evaluate each company's profitability?
  • Evaluate the financial opportunity presented by the companies. If you were a creditor, which company would you be more likely to lend money to? Defend your decision.
  • Which company would you recommend as an investment? Discuss the items that were considered in your decision.
  • Research global implications for the international company selected. How might changing environmental factors affect organizational choices?
  • Consider the ethical climate (internal or external) of your chosen companies. Describe the ethical issues and impact on the stakeholders. What has been/is being done to resolve these issues? Do you agree with these methods for resolution? If not, what might you do differently?

Show your work in Microsoft® Word or Excel®.

Complete calculations/computations using Microsoft® Word or Excel®.

Include the four financial statements along with your assignment.

Format your assignment consistent with APA guidelines

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Explanation & Answer

Attached.

Running head: COMPARISON OF PEPSICO AND COCA-COLA COMPANIES
COMPARISON OF PEPSICO AND COCA-COLA COMPANIES
Name

Institution

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COMPARISON OF PEPSICO AND COCA-COLA COMPANIES

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Introduction
The coca-cola and PepsiCo companies are popular in the world. The two companies are
great competitors with a global outreach (Design to Grow 2015). This paper will compare the
two companies based on some financial ratios.
Net income of coca-cola company
The net income of the Coca-Cola Company in the year 2012 was 9.02 billion dollars. The
net income decreased in the year 2013, and was recorded at 8.58 billion USD. This represented a
decrease by 0.44 billion USD. The net income continued to decrease in the year 2014 to 7.1
billion USD. The decrease was significant from the previous year (reduction occurred by 1.48
billion USD or 17.24%). In the year 2015, the net income was 7.35 billion USD (Design to Grow
2015). This was a slight increase from the previous year (0.25 billion USD or 3.52%). The
decreasing trend in net income continued in the year 2016 where 6.53 billion USD was recorded.
The decrease occurred by 0.82 billion USD and represented 11.15%. The overall five-year net
income trend has been on the decrease in the case of Coca-Cola Company.
The net sales of Coca-Cola Company between the year 2012 and 2016 were 48.15B,
46.76B, 46B, 43.7B and 41.38Billion dollars respectively. The decrease between the year 2012
and 2013 was -2.88% while the decrease between the year 2013 to 2014 was -1.63%. The
decrease between the year 2015 to the year 2016 was -5.01% while the net sales decreased by 5...


Anonymous
Very useful material for studying!

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