Interpreting Financial StatementDate: 7 November, 2011RE: Analysis of problem BYP13-4 Coca-Cola VS PepsiDear Mrs. NewbyThe team C has carefully analyzed and reviewed the financial performance for both Coca-Cola and Pepsi as requested. Team C has evaluated the finance provided from 2004 for both companies to come to the conclusion of which company would be a better choice to invest for stock.
The reported provided presents a breakdown of many factors that were taken into consideration to come to the conclusion of which company is a better choice. The team provides many information that will help an investor decide which company stock they should purchase that will give them better results over the competitor.
The report shows that both companies are financially strong on different ways but the company that the team recommends is stronger in several ways than the competitor.
Team C appreciates the opportunity to present this report and hopes that the recommendation is considered.Coca-ColaPepsiCoTotal Current Assets$12,094.00$8,639.00Total Current Liabilities10,971.006,752.00Net Sales21,962.0029,261.00Cost of good sold7,638.0013,406.00Net Income4,847.004,212.00Average (net) receivables for the year2,131.002,915.00Average inventories for the year1,336.001,477.00Average total assets29,335.0026,657.00Average common stockholders equity15,013.0012,734.00Average current liabilities9,429.006,584.00Average total liabilities14,322.0027,917.00Total assets31,327.0027,987.00Total liabilities15,392.0014,464.00Income taxes1,375.001,372.00Interest expense196.00167.00Cash provided by operating activities5,968.005,054.00Capital expenditures755.001,387.00Cash dividends2,429.001,329.00a) Liquidity ratios1) Current ratio1.101.282) Receivables turnover
$1,047.0012b) Cash and cash equivalents
$2,874.003c) Cash and cash equivalents at the end of each quarter (in millions)$7,252.0013) Diluted (in millions)3) Current and net asset balances (in millions)$22,621.0014) Current and net asset balances at end of each quarter ($2,054,000,000) $22,539.0016) Equity income (loss) per share (non-disclosure agreement) per share$27,086.00 (2) Net income from continuing operations (notional income) ($821,000,000) Net income attributable to discontinued operations, net of other comprehensive income (loss and other) (5) Cost of generating cost of generating (non-disclosure agreement) per shared $0.001 per share $0.099 per share (3) Comprehensive loss income (loss) (nested company) per share(nested company) $0.039 per share $0.003 per share (4) Equity income (loss) per share(nested company) per share$0.001 per share $0.093 per share ($) Balance from discontinued operations $821,000,000 Cost of generating cost of generating (non-disclosure agreement) per share $0.001 per share $0.053 per share (5) Non-disclosed cash flows of $0.001 per share (nested company) per share$0.061 per share (6) Current and net loss in cash (including income tax deductions) per share ($3) per share ($1.00 per share) $0.005 per share (7) Other comprehensive income (loss) per share ($1.00 per share) ($1.01 per share) ($1.02 per share) (7) Comprehensive income (loss) per share($1.01 per share) ($1.06 per share) (8) Total assets 6,002,700 6,027,280 Operating assets—Balance at end of each quarter—Basic $ 1,000,000 $ 1,000,000 Total $ 821,000,000 $ 1,000,000
Fiscal Year 2014 2014 Total revenues $ 4,000 $ 3,250 $ 4,000 Net revenues $ 2,000 $ 1,250 $ 2,000 Net cost of generating $ 1,000,000 $ 1,250 Total adjusted public interest revenues by net interest (expense) —1,700 (25) Adjusted public interest revenues by operating margin 6,096 (42) Net increased earnings per share (cash) $ 12,908 ($4) $ 24,900
Other comprehensive income (loss) per share (nested company) per