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    Analysis of Coca-cola and Pepsi through the Solvency Ratios

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    Given the following data, prepare a solvency analysis of Coca-cola and PepsiCo.

    Coca-Cola PepsiCo
    Total current asset $ 12,094 $ 8,639
    Total current liabilities 10,971 6,752
    Net sales 21,962 29,261
    Cost of goods sold 7,638 13,406
    Net income 4,847 4,212
    Average (net) receivables for the year 2,131 2,915
    Average inventories for the year 1,336 1,477
    Average total assets 29,335 26,657
    Average common stockholders' equity 15,013 12,734
    Average current liabilities 9,429 6,584
    Average total liabilities 14,322 27,917
    Total assets 31,327 27,987
    Total liabilities 15,392 14,464
    Income taxes 1,375 1,372
    Interest expense 196 167
    Cash provided by operating activities 5,968 5,054
    Capital expenditures 755 1,387
    Cash dividends 2,429 1,329

    © BrainMass Inc. brainmass.com October 9, 2019, 11:01 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/241120

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    Solution Summary

    The solution analyses the performance of both PepsiCo and Coca-cola through ratios.

    Ratios express a relationship between two values. The ratios, calculated and compared, are the solvency ratios

    $2.19