Interpreting Financial Statement
Autor: samaria1227 • November 21, 2011 • Case Study • 1,638 Words (7 Pages) • 1,433 Views
Memo
To:
Date: 7 November, 2011
RE: Analysis of problem BYP13-4 Coca-Cola VS Pepsi
Dear Mrs. Newby
The 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-Cola PepsiCo
Total Current Assets $12,094.00 $8,639.00
Total Current Liabilities 10,971.00 6,752.00
Net Sales 21,962.00 29,261.00
Cost of good sold 7,638.00 13,406.00
Net Income 4,847.00 4,212.00
Average (net) receivables for the year 2,131.00 2,915.00
Average inventories for the year 1,336.00 1,477.00
Average total assets 29,335.00 26,657.00
Average common stockholder's equity 15,013.00 12,734.00
Average current liabilities 9,429.00 6,584.00
Average total liabilities 14,322.00 27,917.00
Total assets 31,327.00 27,987.00
Total liabilities 15,392.00 14,464.00
Income taxes 1,375.00 1,372.00
Interest expense 196.00 167.00
Cash provided by operating activities 5,968.00 5,054.00
Capital expenditures 755.00 1,387.00
Cash dividends 2,429.00 1,329.00
a) Liquidity ratios
1) Current ratio 1.10 1.28
2) Receivables turnover
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