Assessment Description The purpose of this assignment is to employ accounting principles and relevant business practices to evaluate a company’s performance and financial position through a comparison...

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Assessment Description

The purpose of this assignment is to employ accounting principles and relevant business practices to evaluate a company’s performance and financial position through a comparison to industry data.


Locate the Critical Thinking CT 10.4 problem at the end of Chapter 10 in the textbook. This will serve as the structure for your assignment. Begin by choosing two competing publicly traded companies from the list below.



  1. Coca-Cola and PepsiCo

  2. Walmart and Target

  3. Nike and Adidas


For the pair of companies selected, you will need to use each company’s stock symbol to locate the liquidity, solvency, and profitability ratios on the MSN Money website. As part of your research, you will need to identify each company’s stock symbol for the American market.


Review the competing companies’ ratios provided at the MSN Money websitehttps://www.msn.com/en-us/moneywww.msn.com. Navigate to My Watchlist and enter the name of the company in the Quote Search. Identify and select the correct stock symbol.


Under the “Analysis” heading, use the Growth, Profitability, Price Ratios, Financial Health, Trading Statistics, and Management Effectiveness information to complete a 750-1,000 word comparison addressing the following:



  1. Evaluate each company’s liquidity relative to its competitor using at least three ratios

  2. Evaluate each company’s solvency relative to its competitor using at least two ratios

  3. Evaluate each company’s profitability relative to its competitor using at least three ratios


Note: You will be assessed on your ability to evaluate each company’s performance based on the information provided at MSN Money. You do not need to calculate the ratios for individual companies or the industry averages.


Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center.


This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.


You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.



Benchmark Information



This benchmark assignment assesses the following programmatic competencies:



BS Applied Management



1.2: Utilize financial statements to measure the fiscal performance of an organization.

Answered 1 days AfterFeb 13, 2022

Answer To: Assessment Description The purpose of this assignment is to employ accounting principles and...

Garima answered on Feb 14 2022
111 Votes
Title:
Accounting principles and relevant business practices to evaluate a company’s performance and financial position.
Objectives:
(a) To compare two publicly traded companies Coca-Cola and PepsiCo in terms of growt
h, profitability, price Ratios, financial health, trading statistics, and management effectiveness.
(b) Evaluate each company’s liquidity relative to its competitor using at least three ratios
(c) Evaluate each company’s solvency relative to its competitor using at least two ratios
(d) Evaluate each company’s profitability relative to its competitor using at least three ratios
Methods used:
MSN Money Website https://www.msn.com/en-us/moneywww.msn.com.
Introduction:
The Coca-Cola Co (KO) and PepsiCo, Inc (PEP) are two gigantic companies who have dominated the market for producing cola-flavored sodas. They also produce other beverages like juices, mineral water, smoothies etc with Coca-Cola Co being total beverage company while PepsiCo, Inc diversifying into food and beverage company. Coca-Cola Company has more than 200 brands while PepsiCo owns 23 brands. They have been market rivals for a very long time and have been targeting each other’s marketing campaigns for direct competition between different product lines. The competition can be called as duopoly because the two companies control the entire market for cola-flavoured sodas.
Analysis:
Growth:
Both Coca-Cola Co (NYSE: KO) and PepsiCo, Inc (NASDAQ: PEP) have nearly similar business models with regards to flagship products, industry and consumers. However, PepsiCo has diversified itself into food and snacks industry with 23 brands while Coca-Cola Co is majorly a beverage company owning over 200 brands of varying types like tea, coffee, milk etc. For the financial year 2021-22 (FY 2021), Coca-Cola Co (https://www.msn.com/en-in/money/stockdetails/analysis/nys-ko/fi-a1wljc) revenues grew by 17.09% as compared to FY 2020 to 3,865.50cr. While for PepsiCo (https://www.msn.com/en-in/money/stockdetails/analysis/nas-pep/fi-axyhnm), revenues for FY 2021 grew by 12.93% as compared to FY 2020 to 7,947.40cr. Net income for Coca-Cola Co grew 26.13% to 977.10cr, while for PepsiCo, net income grew 9.66%...
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