Question

Calculate and compare the Pepsi and Coke based on the broader ratios.                                                     

BALANCE   SHEET
Pepsi            Coke
Assets	2019	2019
Cash	7,282	9,000
Short   term investment	0	48,600
Acc.   Receivable	632,160	351,200
Inventories	1,287,360	715,200
Total   current assets	1,926,802	1,124,000
Fixed   Assets
Plant   & Equipment	1,202,950	491,000
Less:   Acc dep	263,160	146,200
	939,790	344,800
Total   assets	2,866,592	1,468,800
Liabilities   & Equities
Current   liability
A/c   Payable	524,160	145,600
Notes   payable	720,000	200,000
Accruals	489,600	136,000
total   Current liability	1,733,760	481,600
Long-term   debt	1,000,000	323,432
Common   Stock	460,000	460,000
Retained   Earning	-327,168	203,768
	1,132,832	987,200
Total   equities	2,866,592	1,468,800
Income   Statement
Sales	5,834,400	3,432,000
Cost   of Goods Sold	5,728,000	2,864,000
Other   expense	680,000	340,000
dep	116,960	18,900
EBIT/   LOSS	-690,560	209,100
Interest   expense	176,000	62,500
EBT/   LOSS	-866,560	146,600
tax	-346624	58640
net   income/loss	-519,936	87,960

                                                                       

 

 

 

 

 

 

 

 

 

                                   

 

 

 

 

 

 

 

Required:

Explain the broader concept of these ratio areas and calculate at least three ratios in each area for both companies and compare the firm performance.

1. Liquidity

2. Profitability

3. Leverage

4. Efficiency ratio/Asset Activity

5. Market ratio

6. Du Pont Ratio