Financial Statement Analysis and Decision Making Activity

Resources: U.S. Securities and Exchange Commission (SEC)

Tutorial help on Excel® can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. 

Select two competing companies, Dr. Pepper and Coca-Cola both must be American and publicly traded and locate annual reports for these two companies on the company's website. DO NOT use summary sites-go directly to your company site.  

Research the two companies and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows. 

Develop a maximum 200-word examination of the financial statements and include the following:

IN AN EXCEL SPREADSHEET:

· Compute for the two most recent years the:  

· Profit margin 

· Asset turnover 

· Return on assets 

· How would you evaluate each company's profitability?