Comparative Analysis Case

The Coca Cola Company and PepsiCo, Inc.

Instructions

Go to the book’s companion website and use information found there to answer the following questions related to The Coca Cola Company and PepsiCo, Inc.

(a) What type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companies.

(b) What are the gross profits, operating profits, and net incomes for these two companies over the 3 year period 2007–2009? Which company has had better financial results over this period of time?

(c) Identify the irregular items reported by these two companies in their income statements over the 3 year period 2007–2009. Do these irregular items appear to be significant? Financial Statement Analysis Cases