Key Financial Relationships Paper

An abundance of information is available from a company?s publicly released monetary reports, but is only useful if interpreted correctly. The coca plant- the skinny Company and PepsiCo atomic number 18 two companies competing in the same industry, and in order to differentiate the two properly the data from their financial tilts has to be understood. This write up will examine the financial statements released by the two companies. This topic will relieve the inter-relationships between the provided data. The paper will overly explain where the inputs for the basic accounting equality can be found and what issues are revealed in the mingled financial reports. Inter-relationships among the data providedThe tether primary financial statements that coca genus the skinny and Pepsi report on in their 2006 and 2007 annual reports are the balance public opinion poll, the income statement, and the statement of interchange flows. The balance sheet reports the assets, the liab ilities and coca plant Cola and Pepsi?s equity. The income sheet reports the amount of net income get by Coca Cola and Pepsi during the annual reporting period. The statement of cash flows reports the amount of cash collected and paid bug out by Coca Cola and Pepsi. The relationships between Coca Cola?s and Pepsi?s operating statements (the income statements and the statement of cash flows) and their relative balance sheets is referred to as articulation and items on the operating statements serve up explain the change of items on the balance sheets from 2006 to 2007. The interrelationships of Coca Cola?s 2006 and 2007 financial statements are as follows:THE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED equipoise SHEETSDecember 31, 20072006(In millions object par value)ASSETSCURRENT ASSETSCash and cash equivalents $ 4,093 $ 2,440Marketable securities 215 150Trade accounts receivable, less allowances of $56 and $63, respectively 3,317 2,587Inventories 2,220 1,641Prepaid expen ses and new(prenominal) assets 2,260 1,623T! OTAL CURRENT ASSETS 12,105 8,441INVESTMENTSEquity method investments:Coca-Cola Enterprises Inc. 1,637... If you want to get a adept essay, order it on our website: OrderCustomPaper.com

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