As chief lending officer for a bank, you need to decide whether to make a loan to The Coca-Cola Company. The current items, listed in alphabetical order, are taken from the consolidated balance sheets of The Coca-Cola Company and its competitor PepsiCo at the end of 2014 and 2013:

Required
Part A. The Ratio Analysis Model
A banker must be able to assess a company's liquidity before loaning it money. Liquidity is the ability of a company to pay its debts as they come due. Replicate the five steps in the Ratio Analysis Model on pages 73-74 to analyze the current ratios for The Coca-Cola Company and PepsiCo:
1. Formulate the Question
2. Gather the Information from the Financial Statements
3. Calculate the Ratio
4. Compare the Ratio with Other Ratios
5. Interpret the Ratios
Part B. The Business Decision Model
A banker must consider a variety of factors, including financial ratios, before making a loan. Replicate the five steps in the Business Decision Model on page 74 to decide whether to make a loan to The Coca-Cola Company:
1. Formulate the Question
2. Gather Information from the Financial Statements and Other Sources
3. Analyze the Information Gathered
4. Make the Decision
5. Monitor Your Decision

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The Coca-Cola Company 12/31/14 12/31/13 S 9,577 Accounts payable and accrued expenses Accrued income taxes Assets held for sale Cash and cash equivalents Current maturities of long-term debt Inventories Loans and notes payable Liabilities held for sale Marketable securities Prepaid expenses and other assets Short-term investments Trade accounts receivable, less allowances S 9,234 400 679 8,958 3,552 3,100 19,130 58 3,665 3,066 9,052 309 10,414 1,024 3,277 16,901 3,147 2,886 6,707 4.466 4,873 of $331 and $61, respectively PepsiCo Accounts and notes receivable, net Accounts payable and other current liabilities Cash and cash equivalents Inventories Prepaid expenses and other current assets Short-term investments Short-term obligations 12/27/14 12/28/13 6,651 13,016 6,134 3,143 2,143 2,592 5,076 6,954 12,533 9,375 3,409 2,162 303 5,306