Essay on Xacc 280 Week 9 Final

The liquidity of firm can be measured by computing certain ratio’s such as current ratio and acid ratio. For measuring Target Corporation’s 2014 liquidity; the firm’s current ratio and the acid ratio is computed. The company’s current ratio is 0.91 times which is computed by comparing current asset ($11, 573,000) with current liabilities ($12,777, 000) of the year 2014 (TGT Company Financial, n.d). The firm’s acid ratio is 0.26 times which is computed by deducting inventory ($8,278,000) from current assets. The inventory is deducted from current assets because the company has not received any money for the unfinished good or from unsold inventory worth ($8,278,000). To analyze the Target Corporation’s liquidity trend in 2014; the current ratio and acid ratio of 2014 is compared with the 2015’s ratios. In 2015, the firm’s current ratio was 1.20 times and the acid ratio was 0.45 times. These liquidity ratios reflect that the firm’s liquidity was better in 2015 than 2014. (See Table 1).

Rivalry: The rivalry between Coca-Cola and Pepsi is extremely high; however, both companies continue to remain profitable. Prior to the 1980s, pricing wars negatively affected profitability for Coca-Cola and Pepsi. After Coca-Cola renegotiated its franchise bottling contract and both companies increased concentrate prices, the rivalry began to focus on differentiation and advertising strategies. Through creative advertising campaigns, such as the “Pepsi Challenge” where Pepsi ran blind taste tests to demonstrate that consumers

-3 x 1.66 pts. = minus 5 pts. = 45 pts. out of 50 pts. = 90%

You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.

ACC290 Week 4 Exercises - P4-8A | | | | | | | | | | | | | | | | | | | | | | | | | | P4-8A | | | | | | A. Journalize Transactions | | | | | | | | | | | | | | Date | Account Titles and Explanations | Debit | Credit | | | | 2012 | | |   | | | | 07/01/12 | Cash | 12000 |   | | | |   | Common Stock | | 12000 | | | |   | (Issued Stock for Cash) | |   | | | | 1 | Equipment | 8000 |   | | | |   | Cash | | 2000 | | | |   | Accounts Payable | | 6000 | | | |   | (Purchased Truck with Cash and Account) | |   | | | | 3 | Supplies | 900 |   | | | |   | Accounts Payable | | 900 | | | |   | (Purchased Supplies on Account) | |   |

For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used

The rivalry between coke and Pepsi is legendary and not just only product development and occasionally get personal collusions which sometimes resonate their marketing and promotional activates.

You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.

Because the current ratio measures a company’s ability to pay back short term loans I would be less uncomfortable with the slight drop in liquidity from Coca-Cola rather than the substantially larger drop from PepsiCo. Both current ratios are quite healthy though when compared to others in the industry.

Financial ratios are significant tools of measurement of the soundness and stability of a firm within its internal structures and operations. The computation of the various financial ratios enables a firm in evaluating its financial and market position relative to the industry competition. This paper aims to assess the financial position of Ford Motor Company in comparison with General Motors Company. The evaluation will consider the computation of ratios such as; liquidity ratios, profitability ratios, dividend policy ratios, asset turnover ratios, and financial leverage ratios. The automotive companies are both listed on the NYSE exchange with the symbol ‘F’ being the ticker representation of Ford Motor Company, and ‘GM’ is the ticker symbol for General Motors Company.

Nestle: Nestle is also one of the company that competes with Coca-Cola. Nestle is considered the world’s number one drinks and food organisation in terms of sales. (https://www.nestleprofessional.us/ ).

Looking at the pricing strategies of PepsiCo and Coca-Cola they are taking two very different plans. The products they sell are similar with

Coca Cola and Pepsi vied for "throat share" of the world's beverage market for over a century. The biggest battles of the cola wars were fought over the $60 billion industry in the U.S, where the average American consumed 53 gallons of carbonated soft drinks per years. In a carefully waged competitive struggle, from 1975 to 2000 both Coke and Pepsi achieved annual growth of around 10% as both U.S and worldwide carbonated soft drink consumption consistently rose. This cozy relationship was threatened in the late 1990's , however , when U.S carbonated soft drink consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response both firms began to modify their bottling, pricing and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice , sports drinks and bottled water.

Here is a Graph displaying the different categories Pepsi and Coca-Cola compete in and what their results are:

The local and international markets for carbonated and the non-carbonated soft drinks have remained competitive over the last century (Yoffie and Wang 12). The key players in the beverage industry include Coca-Cola, Pepsi, and Nestle companies. The companies have been involved in the famous competitive war termed ‘cola wars,’ which revolve around Coca-Cola and Pepsi companies. The companies were formed approximately at the same time, with Coca-Cola being launched two years earlier. The two companies have been competing for the same market share as producers of both carbonated and non-carbonated drinks in the international market. Their competitiveness by today has taken diverse ways, including pricing wars,