1. Analyze the financial statements using horizontal analysis.

2. Explain what the ratio is saying for the given companies.

3. Decide which company is better based on the chosen ratio and explain why.

Note: I decided to go with horizontal analysis, but I think ratio analysis would have been better, but I'm eveb more confused about how to use that one.

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 2014 2013 Year Ended December 31, (In millions except per share data) NET OPERATING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) -net Other income (loss)net INCOME BEFORE INCOME TAXES Income taxes CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY BASIC NET INCOME PER SHARE DILUTED NET INCOME PER SHARE AVERAGE SHARES OUTSTANDING Effect of dilutive securities AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 2012 45,998 46,854 $ 48,017 17,88918,42 19,05 28,109 28,433 28,964 17,218 17,310 17,738 447 1,183 895 594 483 769 (1,263) 9,708 10,228 10,779 471 397 819 137 534 463 602 576 2,201 7,124 26 9,32511,477 11,809 2,851 2,723 9,086 67 8,626 42 $ 7,098 8,584 $ 9,019 $ 1.62 1.94 2.00 $ 1.60 1.90 1.97 4,3874,4344,504 80 63 75 4,450 4,509 4,584 Calculated based on net income attributable to shareowners of The Coca-Cola Company