Accounting

• Steps to Avoiding Plagiarism (Links to an external site.)
• The Coca-Cola Company: Form 10-K (Links to an external site.)(Financial information, pp. 72–83)
• Form 10-K/A: Keurig Dr Pepper Inc (Links to an external site.). (Dr. Pepper financial information, pp. 59–70)
• 2016 PepsiCo Annual Report (Links to an external site.) (Financial information, pp. 95–124)
Write a five- to seven-page comparative financial statement analysis of the three companies listed below, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial health of these companies with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: Company Overview, Comparison of Accounting Methods, Ratio Analysis, Final Recommendation, Conclusions. Provide a brief overview of the three companies (at least two pages). What industry is it in? What are its main products or services? Who are its competitors? Where is the company located?
• Calculate the current ratio (current assets divided by current liabilities), quick ratio (liquid assets (current assets minus inventory minus prepaid assets) divided by current liabilities), gross profit percentage (gross profit divided by selling price) (gross profit = Sales minus COGS), inventory turnover (COGS divided by Average Inventory (add beginning inventory and ending inventory and divide by 2)), accounts receivable turnover (net credit sales divided by average net accounts receivable(take the net accounts receivable at the beginning of the year, add it to the account receivable at the end of the year, and divide it by 2)) and asset turnover ratios (net sales divided by average total assets (prior two years of balance sheets)) for all three companies for the current year.
• Note: Cash includes cash and cash equivalents and short term investments.
• Explain how the ratio is calculated and discuss and interpret the ratios that you calculated.
• Discuss potential liquidity issues based on your calculations of the current and quick ratios.
• Are there any factors that could be erroneously influencing the results of the ratios?
• Discuss liquidity issues of the three companies.
In your paper, ascertain from the notes of the financial statements the following:
• Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each of the three companies.
• Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document the method used for each of the three companies.
• Explain the difference between LIFO and FIFO and document the method used for each of the three companies.
• Explain the different categories of intangible assets and document the method used for each of the three companies.
Based on your analysis, would you recommend an individual invest in these companies? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position.
I’ll do the cover page, I need the last page to be the reference page.