Question: 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

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?

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.

Step by Step Solution

★★★★★

3.39 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Gross profit ratios dollar amounts in millions Co... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

79-B-M-A-I (801).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Use Figure 23.7. Suppose the LIBOR rate when the first listed Eurodollar contract matures in December 2019 is 3.1%. What will be the profit or loss to each side of the Eurodollar contract? (Do not...

The following information was summarized from the consolidated statements of income of Wal-Mart Stores, Inc. and Subsidiaries for the years ended January 31, 2009 and 2008, and the consolidated...

The following information was summarized from the 2009 annual report of Wal-Mart Stores, Inc. and Subsidiaries: (in millions) Cost of sales for the year ended January 31: 2009 .....................

The following information was summarized from the balance sheets included in the Form 10-K for the 2014 fiscal year of Kellogg Company and Subsidiaries at January 3, 2015, and General Mills, Inc. and...

Calculation of Gross Profi t Ratio for Coca-Cola and PepsiCo The following information was summarized from the 2008 and 2007 consolidated statements of income of The Coca-Cola Company and...

2015 2016 2018 2019 Table 2: Biogen Inc. and Subsidiaries Consolidated Balance Sheet (in millions) For the years ended December 31 2015 2016 2017 2018 2019 Revenues Total revenues 10,796.8 11,448.8...

Operations Effectiveness. Does it appear that the Mayo Clinic management team is operating effectively as a nonprofit organization? Are they controlling operations? Why or why not? What evidence can...

Required: a) Calculate the current ratio, quick ratio, gross profit margin, profit margin, and debt to total assets for both years. Explain whether the ratios are improving or declining. b) Review...

1. At December 31, 2021, what is the book value of Inventories that are accounted for under the LIFO cost flow assumption? 2. If Dow only used FIFO for its inventory, would the ending inventory...

The following information was summarized from the 2010 and 2009 consolidated statements of income of The Coca-Cola Company and Subsidiaries (for years ended December 31 each year) and PepsiCo, Inc....

2. Compute the payables period and cash cycle for these two companies in 2015. Which company is more efficient at collecting the cash from a sale? Boeing Payable Turnover COGS Average Payable Payable...

Calculate the amount of overhead costs applied to production if the predetermined overhead rate is $4 per direct labor hour and 1,200 direct labor hours were worked.

A study was conducted in a school on how students travel to school. Following are the data collected for three methods students use to travel to school: Methods Number of People Carpool 35 Drive 14...

Determine limx 2 + f ( x ) given the definition of f ( x ) below . ( If the limit does not exist, enter . ) f ( x ) = x 2 + 2 x + 1 ifx

Roadrunner Bookstore uses the perpetual inventory system. Roadrunner Bookstore is owned by Tina Smith. The company had the following transactions for the month of September. Sep 1 Sep 2 Sep 4 Sep 5...

Formulate a linear program which can be used to generate a comprehensive plan for the whole Far Eastern operations. Clearly define every variable used in your formulation. Start your report with an...

The shareholders of X Ltd. are unhappy about the top manager's performance. While the manager's effort in running the firm cannot be observed, it is felt that he or she puts in effort amounting to...

The results below are based on data collected as part of a student project for an introductory statistics class at UF. If there is more than one group/treatment, the first group mentioned is group 1....

Pat and Mandy are married and have a son, Steve, age 8. Mandy, age 29, earns $40,000 annually from her job. Pat, age 31, earns $50,000 annually from his job. Assume that Pat will die before Mandy....

Using a dictionary that gives word origins, such as the American Heritage College Dictionary, Merriam- Websters Collegiate Dictionary, or the NewOxford American Dictionary, find at least ten English...

Income Statement Ratio The 2008 income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest...

Missing Income Statement Amounts For each of the following cases, fill in the blank with the appropriate dollar amount. Net sales Cost of goods sold Gross profit Selling expenses General and...

Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is...

Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,066,000 and will last for six years. Variable costs are 40 percent of sales, and fixed...

5-A company just paid its annual dividends of $1.30 per year. The company has developed a new technique to manufacture its product that is anticipated to provide abnormal dividend growth of 12% per...

This subarea of finance involves methods and techniques to mske appropriate decisiens sbout what kinds of socuenies to own, which firtis' socurfies to buy, and how to be paid back in the form that...