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Pepsi Coke Analysis Paper

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Question;A. What are the primary lines of business of these two companies as shown in their notes to the financial statements?;B. Which company has the dominant position in beverage sales?;C. Which company has the greater percentage increase in total assets from 2006-2007?;D. Which company had more depreciation and amortization expense for 2007? Provide a rationale as to why there is a difference in these amounts between the two companies.;E. What type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companies.;F. What are the gross profits, operating profits and net incomes for these two companies over the three year period 2005-2007? Which company has had better financial results over this period of time? (in millions);G. What format(s) did these companies use to present their balance sheets?;H. How much working capital did each of these companies have at the end of 2007?;I. What is the most significant difference in the asset structure of the two companies? What causes this difference?;J. What were the two companies? trends in net cash provided by operating activities of the period 2005 to 2007?;K. What were the cash and cash equivalents reported by Coca-Cola and PepsiCo at the end of 2007? What does each company classify as cash equivalents?;L. What were the accounts receivable (net) for Coca-Cola and PepsiCo at the end of 2007? Which company reports the greater allowance for doubtful accounts receivable (amount and percentage of gross receivable) at the end of 2007?;M. What is the amount of inventory reported by Coca-Cola at December 31, 2007, and by PepsiCo at December 29, 2007? What percent of total assets is invested in inventory by each company?;N. What inventory costing methods are used by Coca-Cola and PepsiCo? How does each company value its inventories?;O. Compute and compare the inventory turnover ratios and days to sell inventory for Coca-Cola and PepsiCo for 2007. Indicate why there might be a significant difference between the two companies.;P. What amount is reported in the balance sheets as property, plant, and equipment (net) of Coca-Cola at December 31, 2007, and of PepsiCo at December 29, 2007? What percentage of total assets is invested in property, plant, and equipment by each company?;Q. What depreciation methods are used by Coca-Cola and PepsiCo for property, plant, and equipment? How much depreciation was reported by Coca-Cola and PepsiCo in 2007, 2006, and 2005?;R. Compute and compare the following ratios for Coca-Cola and PepsiCo for 2007: Asset turnover, Profit margin on sales and Rate of return on assets.;S. What amounts for intangible assets were reported in their respective balance sheets by Coca-Cola and PepsiCo? What percentage of total assets is each of these reported amounts?;T. what periods of time did Coca-Cola and PepsiCo amortize their intangible assets?;U. What were Coca-Cola?s and PepsiCo?s net revenues (sales) for the year 2007? Which company increased its revenues more (dollars and percentage) from 2006-2007?;V. Are the recognition policies of Coca-Cola and PepsiCo similar? Explain.

 

Paper#51127 | Written in 18-Jul-2015

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