Coke or Pepsi? (Comparison/Contrast including annual reports, using Accounting Principles)

Almost everyone in the world prefers one brand to another. In comparing Coca Cola and Pepsi we must look at the financial pictures of both organizations. By comparing balance sheets, statements of income, statement of cash flows, statement of changes in owners' equity we can determine the choice of soda drinkers. By reviewing the 2000 Consolidated Statement of Income of PepsiCo, Inc. and Subsidiaries, one can determine annual net sales of $20,438 (in terms of millions). Costs …

…of $835, and deferred income taxes of $358.) Shareholder's equity equals $9,316, which has decreased from $9,513 in 1999. See Consolidated Balance Sheet table. Based on this assessment it appears that Pepsi and Coke are doing a very similar business. Each company is maintaining excellent sales growth and market share. Assets are almost identical, with Coca-Cola having slightly more ($2,495). Pepsi has many more liabilities such as a difference in long-term debt of $1,511, deferred income taxes of $1,003, and other liabilities at $2,444.