Coca Cola Case

a. Both companies use a Condensed Income Statement which is the condensed version of
the multistep format. Pepsi uses cost of sales while Coke uses cost of goods sold, Pepsi
uses operating profit while Coke uses operating income. Pepsi uses bottling equity
income while Coke uses equity income.
b. Coca Cola
Operating Profit: $112,651,000,000
Gross Profit: $70,654,000,000
Net Income: $27,399,000,000
Pepsi
Operating Profit: $98,498,000,000
Gross Profit: $55,386,000,000
Net Income: 17,512,000,000
Coca Cola had better financial results over the three year period from 2009-2011.
c. Coca Colas Irregular Expenses totaled $82,000,000 over the three year period from
2009-2011, while Pepsis totaled 465,000,000.
Irregular items are not significant because by their definition they will not happen again.