Horizontal and Vertical Financial Analysis - PepsiCo vs Coca-Cola Essay

Horizontal and Vertical Financial Analysis - PepsiCo vs Coca-Cola - Essay Example The structure of this article is framed in such a manner that firstly income statements of both the companies are analyzed on horizontal and then on vertical basis. Next section is based on the analysis of balance sheets for the two companies on horizontal basis and then followed by vertical analysis. The major components of income statements are analyzed for both the companies in respect of cost of goods sold, operating income, income before taxes and finally net income. Cost of sales for PepsiCo is around 43% of the sales whereas the same for Coca-Cola is around 35% of the sales which is substantially lower than that of PepsiCo. In respect of operating profits, Coca-Cola has also an edge over PepsiCo such that its operating income is around 26% of the sales whereas PepsiCo remained behind and has the operating profit of just around 18%. Coca-Cola remained successful in maintaining a healthy position in respect of its income before taxes such that it managed to earn income before ta xes around 28% of the sales whereas PepsiCo hardly managed to earn income before taxes of around hardly 19% of the sales. Net income for Coca-Cola has remained on a stronger side pursuing around 21% of its sales. On the other hand, PepsiCo just managed to earn net income of 13% of its sales in the three years. Following are the attached tables for percentage change on horizontal basis for two companies.... s 19.60 18.95 18.51 Provision for Income Taxes 7.08 4.69 5.28 Income from Continuing Operations 12.52 14.26 13.23 Tax Benefit from Discontinued Operations 0.00 0.13 0.00 Net Income 12.52 14.39 13.23 Coca Cola Inc.                Income Statement    Horizontal Analysis 2005    2004    2003 Net Operating Revenues 100.00 100.00 100.00 Cost of Goods Sold 35.47    35.30    37.28 GROSS PROFIT 64.53 64.70 62.72 Selling, general and administrative expenses 37.82 36.29 34.94 Other operating charges 0.37    2.21    2.75 OPERATING INCOME 26.34 26.21 25.03 Interest income 1.02 0.72 0.84 Interest expense 1.04 0.90 0.85 Equity income — net 2.94 2.86 1.95 Other loss — net (0.40) (0.38) (0.66) Gains on issuances of stock by equity investees 0.10    0.11    0.04 INCOME BEFORE INCOME TAXES 28.96 28.62 26.35 Income taxes 7.87 6.32 5.50 NET INCOME 21.09    22.29    20.84                   Income Statement Analysis on Vertical Basis In respect of vertical analysis, PepsiCo is found to have earned much more growth as compared to Coca-Cola such that PepsiCo’s revenues increased by 8% and 11% respectively as compared to previous years whereas Coca-Cola’s revenues increased with 4% and 6% during the same periods. Operating profits of PepsiCo increased by around 10% and 12% as compared to previous years, however, only 9% and 7% increase in operating income for Coca-Cola can be observed. Net income of PepsiCo decreased by 3.18% as compared to previous year but Coca-Cola managed to increase its net income by 0.52%. Following tables highlight the comparative vertical analysis for both companies. PepsiCo Inc.       Income Statement    Vertical Analysis 2005 2004 Net Revenue 11.28 8.49 Cost of sales 11.85 8.41 Selling, general and administrative expenses 11.63 8.70 Amortization of intangible

Hormones and Nerve Questions Essay Example | Topics and Well Written Essays - 3250 words

Hormones and Nerve Questions - Essay Example But it was proved that epinephrine alone could not cause this transformation to occur. It had to call on the help of a secondary messenger, cyclic AMP, for assistance. Cell membranes consist of lipid chains which makes them hydrophobic or water repelling in nature. Whereas hormones are proteins made of hydrophilic or water loving peptide chains, and they cannot readily pass through the cell membranes. This is where secondary messengers come in. they serve as a messenger between the hormones and the target cell. Secondary messengers are mostly small molecules causing a higher rate of diffusion through the cytoplasm of the cell and a faster rate of information transmission. Secondary messengers also help intensify the strength of a particular signal. Hormones in very small amounts can cause the release of thousands of secondary messengers. This means that the body can save up a lot of energy. It does not need to utilize all its nutritive resources such as proteins in the formation of h ormones, because only tiny quantities of these hormones are needed to get a response from the target cells. Therefore minimum amounts of energy are used by the body to communicate with various cells. Secondary messengers are present in the cytoplasm of cells, thereby controlling the rate of hormones and enzymes utilized by the cells. They could either cause an increase or decrease in the metabolic reactions of the cells. This means that tiny doses of hormones could cause immediate responses as the effects are amplified by the secondary messengers. Secondary messengers are also responsible for signal transduction torrents. Words: 310 NERVE QUESTION Write approximately 800 words on why it is important to understand the structure of nerve cells in order to appreciate their function. Please make sure you cover the generation of an action potential and the transmission of a nerve impulse. It is important to understand the structure of nerve cells, because it is because of their specific structure that they can carry out their important functions. A nerve is a bundle of neurons and a neuron is an individual nerve cell. There are three types of neurons: Sensory neurons Relay neurons Motor neurons These three neurons function together to transmit nerve impulses and each of them have a separate structure which facilitates the entire process. Sensory neuron endings are more concentrated in our sense organs like the retina of the eye, cochlea of the ear, etc. sensory neuron endings receive stimulus from the sense organs and then they pass the nerve impulse immediately to the dendrite which then passes them to the Dendron, which is a single fiber, and then these impulses are brought to the cell body which consists of a nucleus and cytoplasm. Finally these impulses pass through the axon and arrive at the synaptic knob which has several branches. These impulses are somewhat similar to electrical impulses. Sensory neurons are elongated cells consisting of sensory nerve endin gs at one end and synaptic knobs at the other. They are coated with a fatty layer known as the myelin sheath which acts as an electrical insulator so as not to get disturbed with other passing impulses. Gaps in the myelin sheath are known as the nodes of Ranvier, which help speed up the passage of nerve impulses. Relay neurons are smaller cells which act as a link