Write a five- to seven-page comparative financial statement analysis of the three companies listed below
The Coca-Cola Company: Form 10-K (https://investors.coca-colacompany.com/filings-reports/annual-filings-10-k/content/0000021344-18-000008/0000021344-18-000008.pdf) – Financial statements and notes start on page 60.
Accounts receivable, page 81
Inventories, page 82
Depreciation, page 96
Goodwill, page 83
Keurig Dr Pepper Annual Report (https://investors.keurigdrpepper.com/annual-reports)
Click on the 2018 Annual Report
Accounts receivable, page 72
Inventories, page 72
Depreciation, page 73
Goodwill, page 74
PepsiCo Annual Report (https://www.pepsico.com/docs/default-source/annual-reports/pepsico-inc-2016-annual-report.pdf) – Financial statements and notes start on page 79.
Accounts receivable, page 124
Inventories, page 89
Depreciation, page 95
Goodwill, page 88
Provide a brief overview of the three companies (at least two pages). What industry is it in? What are its main products or services? Who are its competitors? Where is the company located?
Calculate the current ratio, quick ratio, gross profit percentage, inventory turnover, accounts receivable turnover and asset turnover ratios for all three companies for the current year.
Note: Cash includes cash and cash equivalents and short term investments.
Explain how the ratio is calculated and discuss and interpret the ratios that you calculated.
Discuss potential liquidity issues based on your calculations of the current and quick ratios.
Are there any factors that could be erroneously influencing the results of the ratios?
Discuss liquidity issues of the three companies.
Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each of the three companies.
Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document the method used for each of the three companies.
Explain the difference between LIFO and FIFO and document the method used for each of the three companies.
Explain the different categories of intangible assets and document the method used for each of the three companies.
Based on your analysis, would you recommend an individual invest in these companies? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position.
