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Coke and Pepsi

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Coke and Pepsi
A) Coca-Cola is predominantly a manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups. They also manufacture finished beverages.

Pepsi is a manufacturer or use manufacturers, market and sell a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods through their North American and international divisions.

B) Coca-Cola has the dominant position in beverage sales.

C) Coca-Cola 2006 $29,963, 2007 $43,269 The difference is $13,306 for a 44.4% increase.

Pepsi 2006 $29,930, 2007, $34,628 The difference is $4,698 for a 15.6% increase.

D) Pepsi had $1,426 which was more than Coca-Cola’s $1,163. Pepsi has more long term assets which are depreciable.

E) Both companies use a Condensed Income Statement which is the condensed version of the multistep format. Pepsi uses cost of sales while Coke uses cost of goods sold, Pepsi uses operating profit while Coke uses operating income. Pepsi uses bottling equity income while Coke uses equity income.

F)

|Coca-Cola | |2005 |2006 |2007 |
| |Gross profits |14,909 |15,924 |18,451 |
| |Operating profits |6,085 |6,308 |7,252 |
| |Net income |4,872 |5,080 |5,981 |
| | | | | | |
|Pepsi | |2005 |2006 |2007 |
| |Gross profits |18,386 |19,375 |21,436 |
| |Operating profits |5,984 |6,502 |7,170 |
| |Net income |4,078 |5,642 |5,658 |
| | | | | |

Coca-Cola has been more efficient than Pepsi in producing a greater net income in two out of

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