Financial Analysis

Financial Analysis Financial Analysis-XACC/Accounting Essay Financial Analysis XACC/280 Anthony Issakhan Financial Analysis Comparing a minimum of two years of financial data is needed to make a financial analysis of a company against their competitor. In this paper I will be making a comparison of two companies, Coca Cola Company and PepsiCo Inc.. As this research paper was finalized, the financial analysis contradicted my previous thoughts and showed Coca Cola as the prime investment option. Further information provided in this paper will lay out the details found doing this research of why Coca Cola Company is the better option. When comparing companies it is necessary to identify key properties in both, to identify who the stable companies are. Investing money into a company is a big commitment and knowing its position is critical. Profitability, liquidity, and solvency are used in this process to determine the health of the companies that are being compared. Detailed financial documents will provide all the information needed to calculate the health of these companies. In order to document a company’s vertical and horizontal analysis, it is required to see what trend the company has had over the years. A ratio analysis is used from the liquidity, profitability, and solvency through analyzing this data. This will provide an educated prediction of what the company might do in the future, which will help determine if it would be a good investment or not. Financial Dictionary defines liquidity as â€Å"the measure for a company’s ability to meet short-term obligations using its liquid assets†. In other words, liquidity is a number expressing the ability of a company paying their short-term debts. This number is expressed as a percentage or ratio of current liabilities. Liquidity can be calculated into a ratio by dividing the current cash by current liabilities. This number is sometimes referred to as the current ratio. The importance of this ratio is that it shows the ability of the company to cover short-term debts if something bad happens. This number will help tell potential investors if the company is in a healthy position or not. Per Investopedia.com, â€Å"The higher the ratio, the larger the safety margin the company has to cover short-term debts†. The ability for the company to produce money from product, as well as their efficiency to do so, can also be considered liquidity ratio. Another determining fac tor of liquidity is when a company has trouble receiving payment on receivables. For PepsiCo Inc., in order to get the liquidity ratio we use the formula Current Ratio = Current Assets divided by Current Liabilities. To use this formula, retrieve the data from the balance sheet and input them into the appropriate place. Current ratio of PepsiCo Inc.: Current Ratio 2005 = 10,554 (current assets) à · 9,406 (current liabilities) = 1.12 = 1.12:1 Current Ratio 2004 = 8,639 (current assets) à · 6,752 (current liabilities) = 1.28 = 1.28:1 Coca Cola Liquidity Ratio: Current Ratio 2005 = 10,250 (current assets) à · 9,836 (current liabilities) = 1.04 = 1.04:1 Current Ratio 2004 = 12,281 (current assets) à · 11,133 (current liabilities) = 1.10 = 1.10:1 Total Assets from cash and cash equivalents 2005: 4,701 (cash and cash equivalents) à · 29,427 (total assets) = 0.1598 = 15.98% Total Assets from cash and cash equivalents 2004: 6,707 (cash and cash equivalents) à · 31,441 (total assets) = 0.2133 = 21.33% Percent of current assets in 2005: 10,250 (current assets) à · 29,427 (total assets) = 0.348 = 34.8% Percent of current assets in 2004: 12,281 (current assets) à · 31,441 (total assets) = 0.392 = 39.2% Now to find increase or decrease between the two years: 10,250 (total current assets 2005) à · 12,281 (total current assets 2004) = 0.835 = 83.5% From 2004 to 2005 there is a 83.5% decrease. Now subtract the 2005 from 2004 and there is a 16.5% decrease in total current assets. 9,836 (total current liabilities 2005) à · 11,133 (total current liabilities 2004) =

President John Adams Fast Facts

President John Adams Fast Facts John Adams (1735-1826) was one of Americas founding fathers. He is often seen as the forgotten president. He had been quite influential at the First and Second Continental Congresses. He nominated George Washington to be the first President. He also helped write the treaty that officially ended the American Revolution. However, he only served one year as president. The passage of the Alien and Sedition Acts harmed his reelection and legacy.   Following is a list of fast facts for John Adams. You can also read the: John Adams BiographyTop 10 Things You Should Know About John Adams Birth: October 30,  1735 Death: July 4, 1826 Term of Office: March 4, 1797-March 3, 1801 Number of Terms Elected: 1 Term First Lady: Abigail Smith John Adams Quote: Let me have my farm, family and goose quill, and all the honors and offices this world has to bestow may go to those who deserve them better and desire them more. I court them not. Additional Adams Quotes Major Events While in Office: XYZ Affair (1797)Alien and Sedition Acts (1798)Kentucky and Virginia Resolutions (1798)Navy Department and Marine Corps Created (1798)Capital moved to Washington, D.C. (1800)Library of Congress established (1800)Midnight Appointments (1801) John Adams Quotes: The people, when they have been unchecked, have been as unjust, tyrannical, brutal, barbarous, and cruel, as any king or senate possessed of uncontrollable power. The majority has eternally, and without one exception, usurped over the rights of the minority. If national pride is ever justifiable or excusable it is when it springs, not from power or riches, grandeur or glory, but from  conviction  of national innocence,  information  and benevolence.... The history of our Revolution will be one continued lie from one end to the other. The essence of the whole will be that Dr. Franklins electrical rod smote the earth and out sprang General Washington. That Franklin electrified him with his rod - and  thenceforward  these two conducted all the policies, negotiations, legislatures, and war. The balance of power in a society accompanies the balance of property in land. My country has in its wisdom contrived for me the most insignificant office that ever the invention of man contrived or his imagination conceived. (Upon being elected as the first  Vice President) I pray Heaven to bestow the best of blessings on this house and all that shall hereafter inhabit it. May none but honest and wise men ever rule under this roof. (Upon moving into the White House) I must study politics and war that my sons may have liberty to study mathematics and philosophy. Did you ever see a portrait of a great man without perceiving strong traits of pain and anxiety? Every man in [Congress] is a great man, an orator, a critic, a statesman; and therefore every man upon every question must show his oratory, his criticism, and his political abilities. Modesty is a virtue that can never thrive in public. Related John Adams Resources: These additional resources on John Adams can provide you with further information about the president and his times. The Boston MassacreJohn Adams was an attorney for the defense during the aftermath of the Boston Massacre. But who was to blame for the Massacre? Was it truly an act of tyranny or just an unfortunate event of history? Read the conflicting testimonies here. Revolutionary WarThe debate over the Revolutionary War as a true revolution will not be resolved. However, without this struggle America might still be part of the British Empire. Find out about the people, places and events that shaped the revolution. Treaty of ParisThe Treaty of Paris officially ended the American Revolution. John Adams was one of the three Americans sent to negotiate the treaty. This provides the complete text of this historic treaty. Other Presidential Fast Facts George WashingtonThomas JeffersonList of American Presidents