Competitor Financial Statement AnalysisCompare The Coca Cola Company (ticker symbol-KO) and PepsiCo,...

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Competitor Financial Statement AnalysisCompare The Coca Cola Company (ticker symbol-KO) and PepsiCo, Inc. (ticker symbol-PEP) for the 2018–2020 years using the financial statement information provided in their annual 10-k reports which can be found through the U.S. Securities and Exchange Commission using their respective ticker symbols.Part ICalculate the listed trends and ratios, showing your work and formulas.A. Calculate the dollar and percentage changes from 2018 to 2019 and 2019 to 2020 for cash, total assets, net sales, and net income (loss).B. Prepare trend analysis for cash, total assets, net sales, and net income (loss) for 2018 (base year), 2019, and 2020.C. Calculate the following ratios for 2020 and 2019 (show your formulas and calculations).a. Working Capital. Cuent Ratioc. Quick Ratiod. Debt Ratioe. Return on Assetsf. Return on Equityg. Accounts Receivable Turnover and Days Sales Outstandingh. Inventory Turnover and Days Inventory Outstandingi. Gross Profit (Margin) Percentagej. Net Income as a Percentage of Salesk. P/E Ratio—you will need to find the stock price as of the balance sheet datesPart II: Decision-MakingUse the information from Part I as well as any other relevant information to answer the two scenarios and prepare a detailed explanation for your decision-making and rationale.1. Assume that you are the credit manager for a national bank. Both companies are seeking a significant loan (10% of total assets). Prepare a detailed memo (minimum two pages) assessing which company would you consider to be the safer credit risk and why. Fully explain the ratios used and why they are important in your assessment.2. Assume that you are an investment oker seeking to purchase 10% of the outstanding stock for one of the two companies. Prepare a detailed memo (minimum two pages) assessing which company’s stock would you purchase and why. Fully explain the ratios used and why they are important in your assessment.Three  pages word docments ,APA FORMAT .

Khushboo · Accepted Answer

Part 1
Dollar and percentage change and trend analysis
Coco Cola Inc.
	Particulars
	2018
	2019
	$ Change
	% Change
	Cash
	    9,077 
	    6,480 
	      -2,597 
	-28.61%
	Total assets
	 83,216 
	 86,381 
	       3,165 
	3.80%
	Net Sales
	 34,300 
	 37,266 
	       2,966 
	8.65%
	Net income
	    6,476 
	    8,985 
	       2,509 
	38.74%
	Particulars
	2019
	2020
	$ Change
	% Change
	Cash
	    6,480 
	    6,795 
	           315 
	4.86%
	Total assets
	 86,381 
	 87,296 
	           915 
	1.06%
	Net Sales
	 37,266 
	 33,014 
	      -4,252 
	-11.41%
	Net income
	    8,985 
	    7,768 
	      -1,217 
	-13.54%
Pepsico Inc
	Particulars
	2019
	2019
	$ Change
	% Change
	Cash
	    8,721 
	    5,509 
	      -3,212 
	-36.83%
	Total assets
	 77,648 
	 78,547 
	           899 
	1.16%
	Net Sales
	 64,661 
	 67,161 
	       2,500 
	3.87%
	Net income
	 12,559 
	    7,353 
	      -5,206 
	-41.45%
	Particulars
	2019
	2020
	$ Change
	% Change
	Cash
	    5,509 
	    8,185 
	       2,676 
	48.58%
	Total assets
	 78,547 
	 92,918 
	     14,371 
	18.30%
	Net Sales
	 67,161 
	 70,372 
	       3,211 
	4.78%
	Net income
	    7,353 
	    7,175 
	         -178 
	-2.42%
Ratio analysis
Coco Cola Inc
	Ratio Name
	Formula
	2020
	2019
	
	
	 Figures 
	Ratio
	 Figures 
	Ratio
	Working capital
	Current assets
	   19,240 
	4639
	   20,411 
	-6562
	 
	Current liabilities
	   14,601 
	 
	   26,973 
	 
	 
	 
	 
	 
	 
	 
	Current ratio
	Current assets
	   19,240 
	     1.32 
	   20,411 
	     0.76 
	 
	Current liabilities
	   14,601 
	 
	   26,973 
	 
	 
	 
	 
	 
	 
	 
	Quick ratio
	Liquid assets
	   14,058 
	     0.96 
	   15,146 
	     0.56 
	 
	Current liabilities
	   14,601 
	 
	   26,973 
	 
	 
	 
	 
	 
	 
	 
	Debt ratio
	Total liabilities
	   66,012 
	75.62%
	   65,283 
	75.58%
	 
	Total assets
	   87,296 
	 
	   86,381 
	 
	 
	 
	 
	 
	 
	 
	Return on assets
	Net income
	      7,768 
	8.95%
	      8,985 
	10.60%
	 
	Average total assets
	   86,839 
	 
	   84,799 
	 
	 
	 
	 
	 
	 
	 
	Return on equity
	Net income
	      7,768 
	36.66%
	      8,985 
	44.75%
	 
	Average equity
	   21,191 
	 
	   20,078 
	 
	 
	 
	 
	 
	 
	 
	Accounts receivable turnover
	Net sales
	   33,014 
	     9.28 
	   37,266 
	     9.74 
	 
	Average receivable
	      3,558 
	 
	      3,828 
	 
	 
	 
	 
	 
	 
	 
	Days sales outstanding
	365
	         365 
	   39.33 
	         365 
	   37.49 
	 
	Accounts receivable turnover
	              9 
	 
	            10 
	 
	 
	 
	 
	 
	 
	 
	Inventory turnover
	COGS
	   13,433 
	     4.04 
	   14,619 
	     4.53 
	 
	Average inventory
	      3,323 
	 
	      3,225 
	 
	 
	 
	 
	 
	 
	 
	Days inventory outstanding
	365
	         365 
	   90.28 
	         365 
	   80.52 
	 
	Inventory turnover
	              4 
	 
	              5 
	 
	 
	 
	 
	 
	 
	 
	Gross profit margin
	Gross profit
	   19,581 
	59.31%
	   22,647 
	60.77%
	 
	Net revenue
	   33,014 
	 
	   37,266 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	Net income margin
	Net income 
	      7,768 
	23.53%
	      8,

Competitor Financial Statement Analysis Compare The Coca Cola Company (ticker symbol-KO) and PepsiCo, Inc. (ticker symbol-PEP) for the 2018–2020 years using the financial statement information...

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