Question coca-cola and pepsico both produce and market, Ask an Expert

Accounting

Question: Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures (in $ millions) for these businesses over the past year follow.

Key Figures ($ millions) Coca-Cola PepsiCo

Sales . . . . . . . . . . . . . . . . . . . . . . . . . $30,990 $43,232

Net income . . . . . . . . . . . . . . . . . . . 6,906 5,979

Average assets . . . . . . . . . . . . . . . . . 44,595 37,921

Required: 1. Compute return on assets for (a) Coca-Cola and (b) PepsiCo.

2. Which company is more successful in its total amount of sales to consumers?

3. Which company is more successful in returning net income from its assets invested?

Analysis Component

4. Write a one-paragraph memorandum explaining which company you would invest your money in and why. (Limit your explanation to the information provided.)

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92336652

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