XACC 280 Week 9 Final Project - Financial Analysis

Final Project: Financial Analysis

• Review the annual reports for PepsiCo, Inc and The Coca-Cola Company in Appendixes A & B, especially the Consolidated Statements of Income and the Balance sheets on pp. A4, A6, B1 & B2 of Financial Accounting.
• Write a 1750 – 2050 – word paper in APA format with citations and references that provides a financial comparison of the two companies and your recommendations to improve the financial status of each.
• Include the following:
o An introductory paragraph with a statement of purpose of your paper and a synopsis of what readers may expect to find in the paper – It is best to write this after writing the rest of the paper.
o At least 2 Vertical analyses for both companies – you may use your calculations form the Checkpoint Ratios, Vertical and Horizontal analysis, providing you show your work
o At least 2 Horizontal analyses for both companies – you may use your calculations form the Checkpoint Ratios, Vertical and Horizontal analysis, providing you show your work
o Ratio analysis for both companies, including a test of

• Liquidity with work
• Solvency with work
• Profitability with work

o An explanation of which company appears to be more financially sound. Data must be used in the comparison.
o At least 3 recommendations to improve each company’s financial health
A concluding paragraph summarizing the analysis and recommendations






Introduction
Coca Cola and PepsiCo, Inc are both universally recognized companies. Introducing these companies is not a necessity, as everybody in the world knows about them and their products. These companies have been producing soft drinks, drinking water and flavored waters for centuries and have been competing in the same market for ages. We have come to know about this rivalry as “Cola War” which has its own celebrated history. In this market, there are many players, some are regional companies and some are multinational companies but main competitor of PepsiCo, Inc is Coca Cola and vice versa. The operations of the companies are beyond the national boundaries. Coca Cola and PepsiCo, Inc targets all income segments of customers in the entire world, as their products are attractive and likeable. Both companies produce parallel products and services (Coca Cola Company, 2009).
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