XACC 280 Week 9

Capstone Discussion Question

Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A &

B of Financial Accounting. Select either PepsiCo, Inc. or The Coca-Cola Company. In your

estimation, the company you chose may be financially healthier or weaker.

Would you invest in this company? Explain why or why not. Justify your reasoning, by

presenting at least three key financial ratios that analyze the profitability, the liquidity, or the

solvency of the company.

Respond to your classmates postings, by agreeing or disagreeing with their assessments,

while pointing to the data.

o Respond to at least one classmate who selected different ratios than those you selected

or a different company to analyze.

o Comment on the significance of the ratios and your classmates conclusions.

o Use the same or other ratios to bolster your opinion.

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- to 2,050-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 the 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 Vertical analyses for both companies You may use your calculations from the

Checkpoint Ratio, Vertical, and Horizontal Analyses, providing you show your work.

o Horizontal analyses for both companies You may use your calculations from the

Checkpoint Ratio, Vertical, and Horizontal Analyses, providing you show your work.