Use Column Based On This Course Start Date

Sheet1use The Column Based Upon This Course Start Date

Use the column based upon this course start date Cost of Goods Ma

Use the column based upon this course start date Cost of Goods Ma

Use the column based upon this course start date Cost of Goods Manufactured Data Jan-Feb Mar-Apr May-Jun Jul-Aug Sept-Oct Nov-Dec Direct labor Depreciation Purchases of direct material Beginning work-in-process Ending direct materials Indirect materials Plant utilities, insurance and Property taxes Ending work-in-process Beginning direct materials Indirect labor Manufacturing Income Statement Data Net sales revenue Income taxes Beginning finished goods Supplies expense Ending finished goods inventory Cost of goods manufactured Wage expense Depreciation expense Rent expense Insurance expense

Use the column based upon this course start date Use the following information and prepare a Statement of Cash Flows in good form Jan-Feb Mar-Apr May-Jun Jul-Aug Sept-Oct Nov-Dec Net Income Depreciation Purchased fixed assets paying cash Received $90,000 cash for issuance of notes payable Received $120,000 cash for issuance of common stock Paid $20,000 for purchase of treasury stock Ending cash balance

Class Start Date Jan-Feb Mar-Apr May-Jun Jul-Aug Sept-Oct Nov-Dec Assets Current assets: Cash Accounts receivable Inventory Long-term assets Plant assets Accumulated depreciation Total Assets Liabilities Current liabilities Accounts payable Accrued liabilities Long-term liabilities Notes payable Total liabilities Stockholders equity Common stock Retained earnings Treasury stock Total stockholders equity Total stockholders equity and liabilities

Use the column based upon this course start date Breakeven Chart Jan-Feb Mar-Apr May-Jun Jul-Aug Sept-Oct Nov-Dec Sale Price $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 Variable costs $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 Fixed Costs $12,000.00 $14,000.00 $16,000.00 $18,000.00 $20,000.00 $22,000.00

“COMPARATIVE FINANCIAL STATEMENT”

Different companies have embraced the importance of financial statements as a tool for reviewing, analyzing and gauging their past, present and even predicting the future financial performance. There are different techniques commonly used during preparation of financial statements. The paper below describes the comparative financial statements for Coca-Cola Company, Keurig Dr. Pepper Inc. and PepsiCo companies.

Company Overview

Coca-Cola Company is a beverage company based in Atlanta, Georgia. It is popular for the production of non-alcoholic carbonated beverages, concentrates and syrups, which it markets and sells in different parts of the world. The company produces over 500 brands of beverages in over 200 countries globally. Besides non-alcoholic carbonated drinks, it also manufactures, markets, and distributes water, juice, tea, coffee, sports, and energy drinks. Facing stiff competition from major rivals like PepsiCo and Nestlé, Coca-Cola’s financial health and strategic positioning are crucial for maintaining market share.

Keurig Dr. Pepper Inc.

Based in Plano, Texas, Keurig Dr. Pepper specializes in retailing, manufacturing, and marketing non-alcoholic drinks. It acquired the Seven Up Bottling Group in 2006, which propelled its market penetration. The company holds over 50% of the US beverage market share, competing directly with Coca-Cola and PepsiCo. Keurig Dr. Pepper’s product diversification and distribution network have been central to its growth strategy.

PepsiCo Overview

Headquartered in the USA, PepsiCo is renowned for its wide range of beverages, including carbonated drinks, juices, teas, and smoothies. It uses a diverse portfolio strategy and operates both domestically and internationally. PepsiCo’s target demographics include younger consumers, and its financial strategies focus heavily on marketing and efficient supply chain management to sustain competitive advantages.

Financial Ratios and Liquidity Analysis

The current ratio, calculated by dividing current assets by current liabilities, and the quick ratio, which considers cash and receivables over current liabilities, are key indicators of liquidity. For Coca-Cola, the current ratio and quick ratio suggest some liquidity challenges, especially during periods of seasonal inventory buildup or sales fluctuations.

Keurig Dr. Pepper displays better liquidity, with a manageable debt level and sufficient cash reserves, though there is room for improvement. PepsiCo demonstrates a strong liquidity position, showing robust current and quick ratios, which reflect its effective asset management and operational efficiency.

Impact of Seasonal and Industry Factors on Ratios

Seasonal variability affects inventory and receivables, potentially distorting ratio analyses. For example, peak seasons may temporarily inflate assets, while off-peak seasons may portray liquidity issues. Additionally, industry-wide economic trends, such as raw material price fluctuations or consumer confidence shifts, can influence these ratios artificially.

Accounting Techniques for Accounts Receivable

The allowance method estimates bad debts and records a corresponding reserve, providing a more accurate picture of realizable accounts. Coca-Cola and Keurig Dr. Pepper both use this method, allowing for better bad debt management. PepsiCo also employs this approach but classifies bad debt expense within sales and other expenses.

Depreciation Methods and Inventory Valuation

All three companies adopt the straight-line depreciation method, which allocates an equal expense over an asset’s useful life. Regarding inventory valuation, Coca-Cola uses FIFO for its finished goods and manufacturing resources, whereas Keurig Dr. Pepper employs both FIFO and LIFO for different segments. PepsiCo's inventory is valued using LIFO, especially for its cost management in the US market.

Intangible Assets and Financial Strategy

The companies’ intangible assets include trademarks, patents, and goodwill. These are amortized over their estimated useful lives, with Coca-Cola leveraging trademarks, Keurig Dr. Pepper focusing on proprietary brewing and formulations, and PepsiCo valuing its brand equity and distribution rights.

Conclusion and Investment Recommendation

Based on the financial analysis, Keurig Dr. Pepper exhibits strong growth indicators, diversified product lines, and effective asset management, making it a promising investment. Coca-Cola, despite its global dominance, faces liquidity challenges that require strategic management. PepsiCo maintains a solid financial footing, with high liquidity and efficient operations, suitable for cautious investment considerations. Overall, Keurig Dr. Pepper’s diversified portfolio and market position make it a particularly attractive option for investors seeking growth potential in the beverage industry.

References

• Keurig Dr Pepper, Inc. (2018). Form 10-K/A: Keurig Dr Pepper Inc. Retrieved from https://www.sec.gov
• Miller-Nobles, T. L., Mattison, B. L., & Matsumura, E. M. (2018). Horngren’s accounting (12th ed.). Pearson.
• PepsiCo. (2016). 2016 Annual Report. Retrieved from https://www.pepsico.com
• United States Securities and Exchange Commission. (2017). Form 10-K: The Coca-Cola Company. Retrieved from https://www.sec.gov
• Investopedia. (2020). Liquidity ratios and analysis. Retrieved from https://www.investopedia.com
• Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning.
• Horngren, C. T., Datar, S. M., & Rajan, M. (2018). Cost Accounting: A managerial emphasis. Pearson.
• Gibson, C. H. (2019). Financial Reporting and Analysis. Cengage.
• Shapiro, A. C. (2019). Multinational Financial Management. Wiley.
• Higgins, R. C. (2018). Analysis for Financial Management. McGraw-Hill Education.