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 equation the two properly the data from their financial tilts has to be understood. This penning will examine the financial statements released by the two companies. This reputation will excuse the inter-relationships between the provided data. The paper will excessively 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 troika primary financial statements that coca genus gage and Pepsi report on in their 2006 and 2007 annual reports are the balance tatter, the income statement, and the statement of hard notes flows. The balance sheet reports the assets, the liabilities and coca 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 state ments are as follows:THE COCA-COLA COMPANY A! ND SUBSIDIARIESCONSOLIDATED equipoise SHEETSDecember 31, 20072006(In millions neglect 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 expenses and other(a) assets 2,260 1,623TOTAL CURRENT ASSETS 12,105 8,441INVESTMENTSEquity method investments:Coca-Cola Enterprises Inc. 1,637... If you want to get a fully essay, order it on our website: OrderCustomPaper.com

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