The following information was summarized from the 2008 and 2007 consolidated statements of income of The Coca-Cola Company and Subsidiaries (for years ended December 31 each year) and PepsiCo, Inc. and Subsidiaries (for years ended December 27, 2008, and December 30, 2007).

Required
1. Calculate the gross profit ratios for Coca-Cola and PepsiCo for 2008 and 2007.
2. Which company appears to be performing better? What factors might cause the difference in the gross profit ratios of the two companies? What other information should you consider to determine how these companies are performing in thisregard?

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2008 2007 Sales $31,944 43,251 Cost of Goods SoldSales Cost of Goods Sold $10,406 18,038 (in Millions) Coca-Cola PepsiCo $11,374 20,351 $28,857 39,474 Described as "Net operating revenues by Coca-Cola and as "Net revenue" by PapsiCo. Described as "Cost of Sales" by PepsiCo.