Financial Accounting Concepts: Pepsico, Inc. and the Coca Cola Company

Financial Analysis Randall Meeks Financial Accounting Concepts Mr. Carraher 9-12-2010 PepsiCo, Inc. and The Coca Cola Company have both been in production for ages. Both PepsiCo, Inc. and The Coca Cola Company have become common house hold names through out the world today. Pepsi is one of the best selling products in American history. â€Å"Pepsi is the number 2 soft drink company producer, the world over. Pepsi’s number one priority is making sure that their shareholders investments are profitable. Pepsi has been able to achieve this goal for the most part via increased sales, keeping cost low, and spending money wisely.Pepsi takes pride in the name, they have built an excellent brand by deliver a product that is satisfying to the consumer, as well as safe. The investors in the company also can be happy with the return of investment†(investorguide. com). â€Å"The Coca Cola Company is likely, one of the most significant brands in American history. Coke can go in a ca tegory with a company like McDonalds when it comes to brand value, these two trademarks are 2 of the most recognized in the world. Coke is the highest seller of soft drinks, moving 1. 3 billion beverages that are served daily†(investorguide. com).Pepsi and Coke have been mass producing soft-drinks on an assembly line for a very long time and they both have been competing for the number one soft drink seller spot. PepsiCo, Inc and The Coca Cola Company targets all income segments of customers in the entire world as their products are high quality and very recognizable. Coke and Pepsi offer products so similar that you probably could not tell the difference in a blindfolded taste test. It is a well known fact that when a business goes outside of the United States borders, that production and supply channel become very important concerns.Both Coke and Pepsi own plants that manufacturer their products all over the world in many different countries and continents.. Both companies c ompete with each other and try to make sure they stay relevant. They also tend to copy each other and try to outdo one another on a day to day basis. I will go in detail to explain the financial comparison and contrasting between both companies. I will also explain the vertical and horizontal comparison between the two companies. The main point I will make is to show the difference between both companies financially. Vertical AnalysisConsolidated Income Statement The cost of goods of PepsiCo Inc was $11,031 and $12,314 in 2004 and 2005. The price of product sold in 2004 was 38% of net sales and in 2005, it was 37. 82% of net sale. The price of goods sold went down in 2005. The cost of commodities was $7,674 and $8,195 in 2004 and 2005 for Coke. It was 35% and 35. 47% of net sales in 2004 and 2005. Cost of commodities sold increased for The Coca Cola Company and decreased for PepsiCo, Inc. The operating expense for PepsiCo, Inc was 43% and 43. 54% of net sales in 2004 and 2005. The o perating expenses for Coca Cola were 36% and 37. 2% of net sales in 2004 and 2005. PepsiCo, Inc and The Coca Cola Companies operating expense increased in 2005. The earning before T&I of PepsiCo Inc was 18% and 18. 19% of sales in 2004 and 2005.The operating income for The Coca Cola Company was 26% and 26. 34% in 2004 and 2005. PepsiCo, Inc and The Coca Cola Companies operating income increased. The net income for PepsiCo, Inc. and The Coca Cola Company for 2005 was 21. 09% and 12. 52% The Coca Cola Companies net income ratios was higher than PepsiCo, Inc. Consolidated Balance Sheet The current and total assets for PepsiCo, Inc were 31% and 32. 5% in 2004 and 2005. On the opposite side, the total current assets were 39% and 34. 83% in 2004 and 2005. The liquidity position for PepsiCo, Inc. decreased in 2005 and The Coca Cola Company increased in 2005. The additional assets and fixed assets for PepsiCo Inc, were 69% and 67. 05% in 2004 and 2005. The Coca Cola Companies fixed assets w ere 61% and 65. 17% in 2004 and 2005. The current liabilities for PepsiCo, Inc were $6,752 and $9,406 in 2004 and 2005. The total assets were 24% and 29. 65%. The current liabilities for The Coca Cola Company were $11,133 and $9. 836 in 2004 and 2005.The total assets were 35% and 33. 43%. The current liabilities for PepsiCo, Inc increased while the current liabilities for The Coca Cola Company decreased in 2005. The total liabilities for both companies in 2005 were 55. 08% and 44. 42% of total assets in 2005†¦ The equity for PepsiCo, Inc. was 48% assets in 2004 and 44. 92% assets in 2005. In 2005 PepsiCo, Inc. share holder’s holdings reduced. The equity shares were 55. 58% of assets in 2005 for The Coca Cola Company while in 2004, there were only 51% equity shares. The Coca Cola Companies equity shares were more in relative value as compared to PepsiCo.Horizontal Analysis Consolidated Income Statements The total revenue for PepsiCo, Inc in 2005 and 2004 were $32,562 and $29,261. PepsiCo, Inc had a considerable amount of net revenue in 2005 compared to 2004. The base year of analysis is 2004. The net revenue for PepsiCo, Inc. was 111. 11% in 2005. The total revenue for The Coca Cola Company in 2005 and 2004 were $23,104 and $21,742. Both 2005 and 2004’s revenues were less than PepsiCo, Inc. The net revenue of the company in 2005 was 106. 26% over 2004. The net revenue for 2005 was 6. 26% while 2004 was less.The growth rate of revenue for The Coca Cola Company is less than PepsiCo, Inc. The growth rate of revenue for both PepsiCo and Coca Cola was 11. 11% and 6. 26%. The cost of commodities sold for PepsiCo, Inc was $11,031 and $12,314 in 2004 and 2005. The price of goods sold went up as sales went up. The price of goods sold was 111. 63% compared to 2004's. The cost of commodities sold for The Coca Cola Company was $7,674 and $ 8,195. The cost of commodities sold increased for The Coca Cola Company in 2005 than in 2004. In general and adminis tration expenses of PepsiCo, Inc were $12,674 and $14,176.The operating expenses was 111. 85% in 2005 and 11. 85% more than 2004's. The total operating expenses for The Coca Cola Company was 110. 75% and 10. 75% in comparison to 2004's. PepsiCo, Inc had higher operating expenses than The Coca Cola Company. The operating income for PepsiCo, Inc was $5,259 and $5,922 in 2004 and 2005. The Coca Cola Companies total operating income was $5,698 and $6,085 in 2004 and 2005. PepsiCo, Inc. total operating income was 112. 61% over earlier years. The Coca Cola Companies total operating income was 106. 79% over earlier years.The Coca Cola Companies interest expenses for 2005 were $240 and for PepsiCo, Inc $256. PepsiCo, Inc. interest expenses were more than The Coca Cola Companies. PepsiCo, Inc. net income was $4,078 and $4,212 in 2005 and 2004, PepsiCo, Inc sustained losses in 2005 compared to 2004. The net income for The Coca Cola Company was $4,847 and $4,872 in 2005 and 2004. The Coca Cola Company earned more in 2005 than 2004. Consolidated Balance Sheet The total current assets of PepsiCo, Inc. were $8,639 and $10,454 in 2004 and 2005. The total current assets of PepsiCo, Inc. were 121. 1% prior year’s current assets. PepsiCo, Inc. current assets increased in 2005. The total current assets for The Coca Cola Company were $10,250 and $12,281 in 2004 and 2005. PepsiCo, Inc. current assets were 21. 01% more than prior year’s and The Coca Cola Company were 16. 57% less than previous year's assets. Further more the quick assets of PepsiCo, Inc were more than The Coca Cola Companies quick assets. It shows that PepsiCo, Inc liquidity was more than The Coca Cola Company. PepsiCo, Inc total assets were $27,987 and $31,727 in 2004 and 2005. PepsiCo, Inc. total assets increased by 13. 6%. The Coca Cola Companies total assets were $31,441 and $29,427. The Coca Cola Company decreased by 6. 41%. It shows that PepsiCo, Inc. increased in 2005 more than The Coca Cola Co mpany. PepsiCo, Inc. current liabilities were $6,752 and $9,406 in 2004 and 2005. The total current liabilities of company were 139. 31% over prior year's liabilities. The current liabilities of Coca Cola were $11,133 and $9,836 in 2004 and 2005. The current liabilities were 88. 35% of previous year's liabilities. The Coca Cola Companies current assets and current liabilities decrease in 2005.The total liabilities of PepsiCo, Inc were $14,464 and $17,476 in 2004 and 2005. The total liabilities in 2005 were 120. 82% prior years. The Coca Cola Companies total liabilities were $15,506 and $13,072 in 2004 and 2005. The Coca Cola Companies assets and liabilities decreased in 2005. In 2005 PepsiCo, Inc. share holder’s equity were $20,638 and The Coca Cola Company $16,355. The share holder’s equity increased in both PepsiCo, Inc. and The Coca Cola Company. PepsiCo Inc. equity increased by11. 90% and The Coca Cola Company 2. 64%. Ultimately after reviewing and analyzing PepsiC o, Inc. nd The Coca Cola Company I have came to the conclusion that the net profit of PepsiCo, Inc. and The Coca Cola Company decreased in 2005 and in 2004 there was a profit. The operating expenses of PepsiCo, Inc. and The Coca Cola Company improved quite a bit in 2005. I believe both companies should reduce their operating expense. The interest expenses were also high in 2005. I believe all expenses for interest on a loan made to a corporation or other entities or finances from equity shares should be kept at a minimum. The main purpose of this paper is to explain the financial comparison between The Coca Cola Company and PepsiCo, Inc.Further more I explained vertical and horizontal analyses for the years of 2005 and 2004 for The Coca Cola Company and PepsiCo, Inc. The main idea was to show how both companies are financially different from each other. References Coca Cola Company (2010). Coca Cola Company. Retrieved September 8, 2010. From www. coca-cola. com PepsiCo Inc. (2010). PepsiCo Inc. Retrieved September 9. From www. pepsico. com Investorguide (2010). PepsiCo, Inc. Retrieved September 8, 2010. From investorguide. com Investor Guide (2010). The Coca Cola Company. Retrieved September 8, 2010. From investorguide. com

A Jobless Recovery essays

A Jobless Recovery essays In present day America we live in comfort and trust in our nations government to do the right thing for us Americans. Sometimes those decisions must endure hardships to get through to the gold at the end of the rainbow. Since decisions made in office take a long time to come into effect, it is hard to pinpoint problems and where to deal with them when talking about income and jobs. Since the recession of 2000 the distribution of income has become quite uneven. This due to an ever increasing unemployment rate. Well as Americans we would demand something be done top help this. However it is not the sole purpose of the American Government to make sure that every person is employed. Jared Bernstein stated in his article The Jobless Recovery, that a stimulus is needed to correct these problems. Well the stimulus he is looking for cant come from some economic program or grant, but only from the people themselves. In America today the root of most of these problems lies within the people and their unwillingness to follow laws. A lot of government resources are being dished out to immigrant children whos mothers crossed over the border, birthed their children and bounced. Money that could be going to something usefull is being wasted. Another example of wasted Government expenditure is the welfare system. Unfortunately the system that was set up to help those who could not provide for themselves ad their families is now being used and abused. People know how to beat the system and find every loop hole known to man to squeeze every bit of money out of the Government as possible. Why is there a huge loss of jobs and large unemployment? Thank you for asking. It all comes down to the laziness of the American people. Most Americans who are physically able to work just milk off government disability programs and choose not to get a job. These programs pay a pretty penny for those who know how to...

Clouds Essays - Cloud, The Clouds, Serbian Folklore, Shapeshifting

Clouds Essays - Cloud, The Clouds, Serbian Folklore, Shapeshifting Clouds Clouds I'VE OPENED THE CURTAIN of my east window here above the computer, and I sit now in a holy theater before a sky-blue stage. A little cloud above the neighbor's trees resembles Jimmy Durante's nose for a while, then becomes amorphous as it slips on north. Other clouds follow, big and little and tiny on their march toward whereness. Wisps of them lead or droop because there must always be leading and drooping. The trees seem to laugh at the clouds while yet reaching for them with swaying branches. Trees must think that they are real, rooted, somebody, and that perhaps the clouds are only tickled water which sometimes blocks their sun. But trees are clouds, too, of green leavesclouds that only move a little. Trees grow and change and dissipate like their airborne cousins. And what am I but a cloud of thoughts and feelings and aspirations? Don't I put out tentative mists here and there? Don't I occasionally appear to other people as a ridiculous shape of thoughts without my intending to? Don't I drift toward the north when I feel the breezes of love and the warmth of compassion? If clouds are beings, and beings are clouds, are we not all well advised to drift, to feel the wind tucking us in here and plucking us out there? Are we such rock-hard bodily lumps as we imagine? Drift, let me. Sing to the sky, will I. One in many, are we. Let us breathe the breeze and find therein our roots in the spirit. I close the curtain now, feeling broader, fresher. The act is over. Applause is sweeping through the trees.

How to Find the Meaning and Origin of Your Surname

How to Find the Meaning and Origin of Your Surname With a few exceptions, hereditary surnames- the last names passed down through the male family lines- didnt exist until about 1000 years ago. While it may be hard to believe in todays world of passports and retinal scans, surnames just werent necessary before that. The world  was much less crowded than it is today, and most folks never ventured more than a few miles from their place of birth.  Every man knew his neighbors, so  first, or given names, were the only designations necessary.  Even kings got by with a single name. During the middle ages, as families got bigger and villages got a bit more crowded, individual names became inadequate to distinguish friends and neighbors from one another. One John might be called John son of William to distinguish him from his neighbor, John the smith, or his friend John of the dale. These secondary names, werent quite yet the surnames as we know them today, however, because they werent passed down from father to son. John, son of William, for example, might have a son known as Robert, the fletcher (arrow maker). Last names that were passed down unchanged from one generation to the next first came into use in Europe about 1000 A.D., beginning in southern areas and gradually spreading northward. In many countries, the use of hereditary surnames began with the nobility who often called themselves after their ancestral seats. Many of the gentry, however, did not adopt surnames until the 14th century, and it was not until about 1500 A.D. that most surnames became inherited and no longer transformed with a change in a persons appearance, job, or place of residence. Surnames, for the most part, drew their meanings from the lives of men in the Middle Ages, and their origins can be divided into four main categories: Patronymic Surnames Patronymics- last names derived from a fathers name- were widely used in forming surnames, especially in the Scandinavian countries. Occasionally, the name of the mother contributed the surname, referred to as a matronymic surname. Such names were formed by adding a prefix or suffix denoting either son of or daughter of. English and Scandinavian names ending in son are patronymic surnames, as are many names prefixed with the Gaelic Mac, the Norman Fitz, the Irish O, and the Welsh ap. Examples: The son of John (Johnson), son of Donald (MacDonald), son of Patrick (Fitzpatrick), son of Brien (OBrien), son of Howell (ap Howell). Place Names or Local Names One of the most common ways to differentiate one man from his neighbor was to describe him in terms of his geographic surroundings or location (similar to describing a friend as the one who lives down the street). Such local names denoted some of the earliest instances of surnames in France, and were quickly introduced into England by the Norman nobility who chose names based on the locations of their ancestral estates. If a person or family migrated from one place to another, they were often identified by the place they came from. If they lived near a stream, cliff, forest, hill, or other geographic feature, this might be used to describe them. Some last names can still be traced back to their exact place of origin, such as a particular city or county, while others have origins lost in obscurity (Atwood lived near a wood, but we dont know which one). Compass directions were another common geographic identification in the Middle Ages (Eastman, Westwood). Most geographic-based surname s are easy to spot, though the evolution of language has made others less obvious, i.e. Dunlop (muddy hill). Examples: Brooks lived along a brook; Churchill lived near a church on a hill; Neville came from Neville-Seine-Maritime, France or Neuville (New Town), a common place name in France; Parris came from- you guessed it- Paris, France. Descriptive Names (Nicknames) Another class of surnames, those derived from a physical or other characteristic of ​the  first bearer, make up an estimated 10% of all surname or family names. These descriptive surnames are thought to have originally evolved as nicknames during the Middle Ages when men created nicknames or pet names for his neighbors and friends based on personality or physical appearance. Thus, Michael the strong became Michael Strong and black-haired Peter became Peter Black. Sources for such nicknames included: an unusual size or shape of the body, bald heads, facial hair, physical deformities, distinctive facial features, skin or hair coloring, and even emotional disposition. Examples: Broadhead, a person with a large head; Baines (bones), a thin man; Goodman, a generous individual; Armstrong, strong in the arm Occupational Names The last class of surnames to develop reflect the occupation or status of the first bearer. These occupational last names, derived from the specialty crafts and trades of the medieval period, are fairly self-explanatory. A Miller was essential for grinding flour from grain, a Wainwright was a wagon builder, and Bishop was in the employ of a Bishop. Different surnames often developed from the same occupation based on the language of the country of origin (Mà ¼ller, for example, is German for Miller). Examples:  Alderman, an official clerk of the court; Taylor, one that makes or repairs garments; Carter, a maker/driver of carts; Outlaw, an outlaw or criminal Despite these basic surname classifications, many last names  or surnames of today seem to defy explanation. The majority of these are probably corruptions of the original surnames- variations that have become disguised almost beyond recognition.  Surname spelling  and pronunciation has evolved over many centuries, often making it hard for current generations to determine the origin and evolution of their surnames. Such  family name derivations, resulting from a variety of factors, tend to confound both genealogists and etymologists. It is fairly common for different branches of the same family to carry different last names, as the majority of English and American surnames have, in their history, appeared in four to more than a dozen variant spellings. Therefore, when researching the origin of your surname, it is important to work your way back through the generations in order to determine the  original family name, as the surname that you carry now may have an entirely different meaning than the surname of your distant ancestor. It is also important to remember that some surnames, though their origins may appear obvious, arent what they seem. Banker, for example, is not an occupational surname, instead meaning dweller on a hillside.

Ameresco Inc.(AMRC) Research Paper Example | Topics and Well Written Essays - 500 words

Ameresco Inc.(AMRC) - Research Paper Example important to explain that current ratio under 1 indicates that a company does not have enough money which can be used in financing its daily operations or activities. A high current ratio is good for the organization. During the same period, the quick ratio of Ameresco was 0.98 (Ameresco Inc, 2015). This is a good indication, and it means that the company has enough liquidity, to meet its short term liabilities. On the other hand, the debt/equity ratio of the company is 0.37 (Ameresco Inc, 2015). This is a very low figure, which denotes that the company does not use debts for purposes of financing its operations. Based on this analysis, it is important to explain that the financial health of Ameresco as per the year 2012/2013 was very good. The major competitor of Ameresco is Johnson Controls. Johnson Controls is one of the Fortune 500 companies, and it has an employee base, of around 170,000 people. Due to its large size, it enjoys the benefits of economies of scale, in comparison to Ameresco. As of 2013, the current ratio of the company was 1.13 (Johnson Controls Inc, 2015). This is a lower figure compared to that of Ameresco, which stood at 1.90. This is an indication that Ameresco had a better capability of catering to its short term liabilities, when compared to Johnson Controls. In the same year, the quick ratio of the company was 0.68 (Johnson Controls Inc, 2015). This is a very low figure compared to Ameresco, and it is an indication that the company is struggling to pay off its bills. The debt to equity ratio of the company for the year 2013 was 0.37 (Johnson Controls Inc, 2015). This figure is the same, compared to that of Ameresco, and it is an indication that the company does not rely on debt to finance its operations. Based on this analysis, it is important t o explain that despite the large size of Johnson Controls, Ameresco has a better financial health. The uses of ratios, currency evaluations, capital budgeting and financial leverages are

Strength Training Essay Example | Topics and Well Written Essays - 250 words

Strength Training - Essay Example ing my understanding that muscles have to develop with relaxation from the training schedule, I have opted to alternate the training regularly, is this case; I do train four times in a week. In the four session of the week, I take a standardized time for each training day- one and a half hours. Evaluating the training session, I can gauge my training intensity in a scale of 1-10 to be 8 out of the possible 10. I carry out my training in a public gym facility with the motivation to develop the power to make stronger service and hit during plays. I decided to read the article, â€Å"How Weight training Improves Your Body†, as it i addresses some of the fundemetals of training that are overlooked by the trainees of which I found very educative on the issues relating to strength training and how to train without harm or exhaustion of the body. The information from this article informs my fitness regime on the various types of weight training exercise and what they signify, which made my training goal-oriented avoiding the random training with no target. In conclusion, I have learnt that there are several factors that determines muclses development and thattraining gains are reversible, if one opts using weight that are below the usual capacity. In this regard, I have come to realise that there is the tolerance level even in weight

A Science Column Essay Example | Topics and Well Written Essays - 1000 words

A Science Column - Essay Example A physical quantity is defined by the sequence of operations used to determine its value (Wiliamson). The grouping of several physical quantities to find out the values of each in relation to each other is what constitutes a physical law which is defined as. The laws of thermodynamics relate the heat with temperature changes in materials of different kinds. To be clearer on this, let us begin by defining the various laws of thermodynamics. To begin with the first laws which states that Heat is a form of energy, and energy is conserved (Wiliamson). Here the first law confirms that heat is a form of energy and that it can be conserved. This is seen when we use electricity in our homes, the electrical energy is usually stored in the form of water which is then used to drive turbines hence generating electricity which we often use in our homes. This can always be conserved to minimize wastages by either conserving the water stored in a dam or switching off the electricity when not in use . The second law of thermodynamics can be stated in three different ways as defined by three different scholars. For our study we are going to use the definition of Kelvin which states that No cyclic process exists which produces no other effect than the extraction of heat from a body and its conversion into an equivalent amount of work (Wiliamson). The second law of thermodynamics here brings out the reversibility of thermodynamic processes, that is heat is never lost to the surrounding environments given that all factors such as heat loss to the surroundings through evaporation and other heat transfer processes are under control. This is always carried out in the laboratory by using a calorimeter, a laboratory instrument which is used to measure the amount of heat generated through chemical reactions and other physical changes. The calorimeter is designed for this purpose as it is made in such a way that it can minimize heat loss to the surrounding environment as well as heat gain from the same thus ensuring that heat contained in the materials is the same that is used in the entire experiment. It was upon the realization of the limiting factors in the definition of the term temperature by the two thermodynamic laws that the Zeroth law was devised the help in bridging the gap that was omitted. The zeroth law suggests that If two systems are in thermal equilibrium with a third system, then they are in equilibrium with each other (Wiliamson). This law enables one to order systems according to the direction of heat flow when these two systems are put into contact with each other. For this reason, a system is said to be hotter if heat flows from it into the other system which in this case is considered a colder one than the other when these two systems are put into contact with each other. The reverse is however true in the other direction. The third law of thermodynamics on the other and explains that the entropy of a system approaches a constant value as the t emperature approaches absolute zero (Wiliamson). This law suggests that all motions in a material tend to come a standstill, cease within that particular material as the temperature of that material reduces to absolute zero. All materials however must reach a state whereby the temperatures reduce to absolute zero hence no thermodynamic motions occurring within them. The three laws of