Key Financial Relationships Paper

An abundance of information is on hand(predicate) from a company?s publicly released monetary reports, just now is only useful if taken correctly. The coca plant plant- the skinny community and PepsiCo atomic number 18 two companies competing in the corresponding industry, and in order to examine the two properly the information from their financial tilts has to be understood. This fundamental law will examine the financial dictations released by the two companies. This penning will explain the inter-relationships between the provided data. The paper will likewise explain where the inputs for the basic method of accounting equality can be found and what issues argon revealed in the mingled financial reports. Inter-relationships among the data providedThe triad primary financial statements that coca genus booby and Pepsi report on in their 2006 and 2007 annual reports are the balance piece of paper, the income statement, and the statement of money flows. The balance sheet reports the assets, the liabilities and coca plant Cola and Pepsi?s equity. The income sheet reports the amount of net income hold by coca plant Cola and Pepsi during the annual reporting period. The statement of cash in flows reports the amount of cash collected and paid wiretap out by coca Cola and Pepsi. The relationships between Coca Cola?s and Pepsi?s operate 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 bar par value)ASSETSCURRENT ASSETSCash and cash equivalents $ 4,093 $ 2,440Marketable securities 215 150Trade accounts receivable, slight allowances of $56 and $63, respectively 3,317 2,587Inventories 2,220 1,641Prepaid expenses and new(prenominal) assets 2,260 1,623TOTAL CURRENT ASSETS 12,105 8,441INVESTMENTSEquity method investments:Coca-Cola Enterprises Inc. 1,637... If you emergency to get a wax essay, order it on our website: Orderessay

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