Coca-Cola’s vs Pepsi’s Comparative Analysis
(a)What type of income format(s) is used by these two companies? Identify any differences in
income statement format between these two companies
Both Coca-Cola and Pepsi have used and probably still using multiple income statement formats
that shows different activity levels that is going on the company such as gross profits, operating
profit, and net income.
(b)What are the gross profits, operating profits, net incomes, and net incomes attributable to
noncontrolling interests for these two companies over the 3-year period 2012-2014?
Over a 3 year period from 2012-2014 Coca-Cola’s (in millions) gross profits in total were
$85,506, operating profits were $30,715, net income $24,836 and their net income attributable
to noncontrolling interest were in total was $135
Over a 3 year period from 2012-2014 Pepsi’s (in millions) gross profits in total were $105,172,
operating profits were $28,398, net income $19,559, and their net income attributable to non
controlling interest were in total were $19,431
Which company has had better financial results over this period of time? Pepsi had a better
financial result over this time period
(c)What income statement format do these two companies use to report comprehensive income?
They both use a consolidated income statement to report their comprehensive income