Financial Analysis Xacc280 Final Project - 1784 Words

Financial Analysis/ Final Project XACC/280 Eden Lord Financial Analysis, Final Project Based upon my knowledge learned on financial reporting, I had compared to companies reporting statistics. The two companies in comparison are PepsiCo Incorperated and The Coca-Cola Company in which both have reported annual statistics for 2004 and 2005. During my comparison of net incomes, gross expenses, stock statistics, and assets accumulations, I have suggested some strategies for each business to take into consideration for better future results. As an accountant in training, I will be giving specific details of my analysis and recommendations, as these are my opinions for financial success. As an investor both of these companies are up for†¦show more content†¦Increase in assets is a positive successful outcome; however, an increase in liabilities is not a positive unless the company has expanded or upgraded. Regardless, that the assets grew the liabilities increased they are still under asset accumulation but not leaving much net profit, and the liabilities gained too much too fast without explanation. Not a positive for investors and stockholders because liabilities are priority before net is to be paid to council. Investors and creditors will want to see the increases in the assets and net profits but in return do not want to see the liabilities rise. Of course, liabilities will be expected to increase at one point or another but a 39% increase in just one physical year is not a good business move without proper acknowledgement of the plan in place or reasoning of actions. Much documented short-term liabilities are listed or as other with no detail, as the financial advisor I would definitely be asking more questions or proof of liabilities. PepsiCo’s revenue has increased dramatically per prior year stated about five thousand higher. Price of stock is $2.39 @ 1,782 shares in which is higher according to shares compared to the industry market however. Price dropped in the prior year, not significantly but for the revenue increase; this is not good for investors or for future investment opportunities. Continuing operations revenue has decreased slightly; exploring this avenue could result in larger net revenue for future