# Xacc 280 week 9 final project

*Ratio, Vertical, and Horizontal Analyses The calculations you perform for this CheckPoint form the basis of your analysis of your capstone project. *

*WHAT I NEED: Financial Analysis *

**Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A & B, especially the Consolidated Statements of Income and the Balance Sheets on pp. A4, A6, B1, & B2 of Financial Accounting.**

**Vertical analyses for both companies – You may use your calculations from the Checkpoint Ratio, Vertical, and Horizontal Analyses, providing you show your work. **

**Horizontal analyses for both companies – You may use your calculations from the Checkpoint Ratio, Vertical, and Horizontal Analyses, providing you show your work.**

**An explanation of the three tools of financial statement analysis and the function of each. **

Examine PepsiCo, Inc.’s Consolidated Balance Sheet on p. A6 in Appendix A of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.

Calculate the following for PepsiCo, Inc. and show your work:

• The Current Ratio for 2005

• The Current Ratio for 2004

• Two measures of vertical analysis—for example, compute the current assets divided by total assets for each year, and express your result as a percentage

• Two measures of horizontal analysis—for example, compute the total change in assets by percentage, by dividing current assets in 2005 by current assets in 2004. Compute a similar percentage for current liabilities

Examine The Coca-Cola Company’s Consolidated Balance sheet on p. B2 in Appendix B of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2005 and 2004.

**Calculate the following for Coca-Cola and show your work: **

• The Current Ratio for 2005

• The Current Ratio for 2004

• Two measures of vertical analysis—for example, compute the current assets divided by total assets for each year, and express your result as a percentage

• Two measures of horizontal analysis—for example, compute the total change in assets by percentage, by dividing current assets in 2005 by current assets in 2004. Compute a similar percentage for current liabilities