Question: Prepare a vertical analysis or same size income statement and balance sheet for Pepsi and Coca Cola for 2016 and 2017. Write a paragraph highlighting
Prepare a vertical analysis or same size income statement and balance sheet for Pepsi and Coca Cola for 2016 and 2017. Write a paragraph highlighting what you learn from the percentages of sales or total assets calculated from the financial statements. Write also about the comparison between 2016 and 2017 and between Coke and Pepsi. Compare Pepsis income statement for 2016 with their income statement for 2017 calculate the change in dollars and percent for all of the revenues and expenses. What do the changes indicate about Pepsis success in 2016 relative to 2017? Do the same comparison for Cokes income statement. What do the changes indicate about Cokes improvement or lack thereof between 2016 and 2017? With this comparison of both companies over time now compare Coke vs. Pepsi and explain why one company is better than the other. Based on all of your calculations and observations described above, make a recommendation as to which company would be a better investment. Give the reasons for your conclusion.
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