Financial Accounting Concepts
PepsiCo, Inc. and The Coca Cola Company have both been in production for ages. Both PepsiCo, Inc. and The Coca Cola Company have become common house hold names through out the world today. Pepsi is one of the best selling products in American history. “Pepsi is the number 2 soft drink company producer, the world over. Pepsi’s number one priority is making sure that their shareholders investments are profitable. Pepsi has been able to achieve this goal for the most part via increased sales, keeping cost low, and spending money wisely. Pepsi takes pride in the name, they have built an excellent brand by deliver a product that is satisfying to
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The price of goods sold was 111.63% compared to 2004's. The cost of commodities sold for The Coca Cola Company was $7,674 and $ 8,195. The cost of commodities sold increased for The Coca Cola Company in 2005 than in 2004. In general and administration expenses of PepsiCo, Inc were $12,674 and $14,176. The operating expenses was 111.85% in 2005 and 11.85% more than 2004's.The total operating expenses for The Coca Cola Company was 110.75% and 10.75% in comparison to 2004's. PepsiCo, Inc had higher operating expenses than The Coca Cola Company. The operating income for PepsiCo, Inc was $5,259 and $5,922 in 2004 and 2005. The Coca Cola Companies total operating income was $5,698 and $6,085 in 2004 and 2005. PepsiCo, Inc.total operating income was 112.61% over earlier years. The Coca Cola Companies total operating income was 106.79% over earlier years. The Coca Cola Companies interest expenses for 2005 were $240 and for PepsiCo, Inc $256. PepsiCo, Inc. interest expenses were more than The Coca Cola Companies. PepsiCo, Inc. net income was $4,078 and $4,212 in 2005 and 2004, PepsiCo, Inc sustained losses in 2005 compared to 2004. The net income for The Coca Cola Company was $4,847 and $4,872 in 2005 and 2004. The Coca Cola Company earned more in 2005 than 2004.
Consolidated Balance Sheet
The total current assets of PepsiCo, Inc. were $8,639 and $10,454 in 2004 and 2005. The total current assets of PepsiCo, Inc. were 121.01% prior year’s