ACC – 2013 10-K for Coca-Cola and Pepsico Case

ACC – 2013 10-K for Coca-Cola and Pepsico Case

Question 2013 10-K for Coca-Cola and Pepsico

http://assets.coca-colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form-10-k

www.pepsico.com/Assets/.../PEP_Annual_Report_2013.pdf

1. According to the 2013 annual forms, what is the gross amount of Accounts Receivable for both Coke and Pepsi?

2. Compute the following ratios for the two companies:
Receivables Turnover (Coke)
Receivables Turnover (Pepsi)
Days to Collect (Coke)
Days to Collect (Pepsi)
Inventory Turnover (Coke)
Inventory Turnover (Pepsi)
Current Ratio (Coke)
Current Ratio (Pepsi)
Quick Ratio (Coke)
Quick Ratio (Pepsi)
Price/Earnings Ratio (Coke)
Price/Earnings Ratio (Pepsi)
Gross Profit Percentage (Coke)
Gross Profit Percentage (Pepsi)
Asset Turnover Ratio (Coke)
Asset Turnover Ratio (Pepsi)
Fixed Asset Turnover Ratio (Coke)
Fixed Asset Turnover Ratio (Pepsi)
Return on Equity (Coke)
Return on Equity (Pepsi)
Earnings per share (Coke)
Earnings per share (Pepsi)

3. Which company is a better investment, and why? Use examples consisting of the computed ratios.