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Unformatted text preview: Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A & B of Financial Accounting . Select either PepsiCo, Inc. or The Coca-Cola Company. In your estimation, the company you chose may be financially healthier or weaker. Would you invest in this company? Explain why or why not. Justify your reasoning, by presenting at least three key financial ratios that analyze the profitability, the liquidity, or the solvency of the company Based upon the information provided on PepsiCo, Inc. and The Coca Cola Company, I would make a recommedation to invest in The Coca Cola Company Liquidity Ratios Coca Cola Pepsi INDUSTR Y Current Ratio 1.10 1.00 1.20 Quick Ratio 1.00 0.70 1.00 Interest Coverage NA 11.30 2.80 Leverage Ratio 2.30 3.20 2.60 In terms of liquidity, The Coca Cola Company is far better positioned to meet its short term deby obligations. In addition, In terms of liquidity, The Coca Cola Company is far better positioned to meet its short term deby obligations....
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This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.
- Spring '11