How do I do this? Problem #5:Below is selected financial data for Coca-Cola and Pepsico.Selected Balance Sheet DataDecember 31, 2016, 2015Соса-ColaPepsico(S in millions)2016201620152015Total Assets$87,270$ 89,996$ 74,129$ 69,667Total Liabilities64,05064,23262,93057,637Stockholders' Equity23,22025,76411,19912,030TotalLiabilities&Stockholders' Equity$87,270$89,996$74,129$69,667Income StatementsFor the Year Ended December 31, 2016(S in millions)Coca-ColaPepsico$ 41,863$ 62,799Net SalesCost of Goods Sold16,46528,209Gross Profit25,39834,590Operating Expense16,77224,805Other Income243110Interest Expense7331,342Таx Expense1,5862,174Net Income$ 6,550$ 6,379Required:1. Calculate and compare the 2016 debt to asset ratio for the two companies.2. Calculate and compare the 2016 return on assets ratio for the two companies.3. Calculate and compare the 2016 times-interest earned (interest coverage) ratio for the twocompanies.ItemСоса-ColaPepsicoComparison1.2.3.

Debt to assets ratio for year 2016 of Coca cola company =Total liabilities for year 2016Total Assets…

below iS selected finar Selected Balance Sheet Data December 31, 2016, 2015 Соса-Cola (S in millions) Total Assets Pepsico 2016 $ 74,129 2016 2015 2015 $ 87,270 $ 89,996 $ 69,667 Total Liabilities 64,050 64,232 62,930 57,637 Stockholders' Equity 23,220 25,764 11,199 12,030 Total Liabilities & Stockholders' Equity $87,270 $89,996 $74,129 $69,667 Income Statements For the Year Ended December 31, 2016 (S in millions) Coca-Cola Pepsico Net Sales $ 41,863 $ 62,799 Cost of Goods Sold 16,465 28,209 Gross Profit 25,398 34,590 Operating Expense Other Income 16,772 24,805 243 110 Interest Expense 733 1,342 Таx Expense 1,586 2,174 $ 6,550 $ 6,379 Net Income Required: 1. Calculate and compare the 2016 debt to asset ratio for the two companies. 2. Calculate and compare the 2016 return on assets ratio for the two companies. 3. Calculate and compare the 2016 times-interest earned (interest coverage) ratio for the two companies.

below iS selected finar Selected Balance Sheet Data December 31, 2016, 2015 Соса-Cola (S in millions) Total Assets Pepsico 2016 $ 74,129 2016 2015 2015 $ 87,270 $ 89,996 $ 69,667 Total Liabilities 64,050 64,232 62,930 57,637 Stockholders' Equity 23,220 25,764 11,199 12,030 Total Liabilities & Stockholders' Equity $87,270 $89,996 $74,129 $69,667 Income Statements For the Year Ended December 31, 2016 (S in millions) Coca-Cola Pepsico Net Sales $ 41,863 $ 62,799 Cost of Goods Sold 16,465 28,209 Gross Profit 25,398 34,590 Operating Expense Other Income 16,772 24,805 243 110 Interest Expense 733 1,342 Таx Expense 1,586 2,174 $ 6,550 $ 6,379 Net Income Required: 1. Calculate and compare the 2016 debt to asset ratio for the two companies. 2. Calculate and compare the 2016 return on assets ratio for the two companies. 3. Calculate and compare the 2016 times-interest earned (interest coverage) ratio for the two companies.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.8P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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