ACC 400 Wk 4 Team Assignment - Interpreting Financial Statements

ACC 400 Week 4 Team Assignment - Interpreting Financial Statements Report 
 
Learning Team B
 
1234 Phoenix Street
 
Phoenix, AZ 4321
 
17 May 2010
 
 
 
Mrs. Lydia Sneed, CEO
 
Learning Team B
 
1234 Phoenix Street
 
Phoenix, AZ 4321
 
 
 
Dear Mrs. Sneed
 
 
 
Further to your request, we hereby attach our report analyzing the Coca-Cola Company and PepsiCo, Inc. As outlined in your request, we have paid particular attention in our analysis to the ratios and commentaries derived from the ratios, useful information outside the annual report for investors, which company is more profitable, and preferable company stock.
 
 
 
This report provides detailed financial ratios for Coca-Cola Company and PepsiCo, Inc. in addition to our observations of such ratios.
 
 
 
Our analysis reveals PepsiCo, Inc is more liquid but uses a higher percentage of debt financing than The Coca-Cola Company. Therefore, The Coca-Cola Company proves more solvent than PepsiCo. However, PepsiCo uses assets more efficiently and the return on stockholders’ equity is higher than Coca-Cola.
 
 
 
We thank you for affording us the opportunity to work with you on this project. We will be glad to discuss any questions you may have at our meeting next week.
 
 
 
Sincerely
 
 
 
Learning Team B
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