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Coca-Cola vs Pepsi

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Christine Worth
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Financial Statement Analysis Project Outline

Compare & Contrast Coca-Cola vs. PepsiCo

Financial Analysis
Income Statement vs Cash Flow
Accounts with greatest difference
Evaluation of Fiscal Period
Profitability
Liquidity
Leverage
Financial Reporting Practices
Methods for Accounting
Coca-Cola
Pepsi
Company Disclosures
Compare & Contrast
Clarity & Completeness
Critical Analysis Decision
Investment
Equity Investor

Coca-Cola Company verses PepsiCo
Critical Analysis of Investment

The three financial statements required for external reports are the income statement, balance sheet, and statement of cash flows. The statement of cash flow highlights the major activities that impact cash flows, which affect the overall cash balance (Garrison, Noreen & Brewer, 2012). Equity investors utilize these financial statements for a critical analysis of the firm’s financial stability before making an investment. Based on a comparison of the income statements to the statements of cash flows for Coca-Cola and PepsiCo, the following accounts report the greatest differences between net income and cash flow from operations.
Coca-Cola Company 2010 2009 2008 * Gain from Sale of Asset $(5,358) $(43) $(130) * Income of Equity Investments (671) (359) 1,128 * Change in Accounts Payable 656 319 (576) * Change in Other Working Capital (161) (510) (41)

PepsiCo 2010 2009 2008 * Income on Equity Investment $(916) $(235) $(202) * Change in Accounts Receivable (268) 188 (549) * Change in Accounts Payable 488 (133) 718 * Change in Other Working Capital 12 (408) (459) Relative profitability is concerned with ranking products, customers, and other business segments to determine which should be emphasized (Garrison, Noreen & Brewer (2012). In 2010

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