The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.

Instructions

Use the companies’ financial information to answer the following questions.

a. What were Coca-Cola’s and PepsiCo’s net revenues (sales) for the year 2017? Which company increased its revenue more (dollars and percentage) from 2016 to 2017?

b. Are the revenue recognition policies of Coca-Cola and PepsiCo similar? Explain.

c. In which foreign countries (geographic areas) did Coca-Cola and PepsiCo experience significant revenues in 2017? Compare the amounts of foreign revenues to U.S. revenues for both Coca-Cola and PepsiCo.