Using these 2007 annual reports for The Coca-Cola Company and PepsiCo, Inc., answer the followingquestions. Write these up in a Word document, clearly identifying your response to each lettered item.Show supporting calculations for the items lettered c, f, h, l, m, o, p, r, s and u. a. What are the primary lines of business of these two companies as shown in their notes to thefinancial statements? b. Which company has the dominant position in beverage sales?c. Which company has the greater percentage increase in total assets from 2006 to 2007?d. Which company had more depreciation and amortization expense for 2007? Provide a rationaleas to why there is a difference in these amounts between the two companies.e. What type of income format(s) is used by these two companies? Identify any differences inincome statement format between these two companies.f. What are the gross profits, operating profits, and net incomes for these two companies over thethree-year period 2005-2007? Which company has had better financial results over this periodof time? g. What format(s) did these companies use to present their balance sheets?h. How much working capital did each of these companies have at the end of 2007? Speculate asto their rationale for the amount of working capital they maintain.i. What is the most significant difference in the asset structure of the two companies? Whatcauses this difference?j. What were the two companies’ trends in net cash provided by operating activities over theperiod 2005 to 2007?k. What were the cash and cash equivalents reported by Coca-Cola and PepsiCo at the end of2007? What does each company classify as cash equivalents?l. What were the accounts receivable (net) for Coca-Cola and PepsiCo at the end of 2007? Whichcompany reports the greater allowance for doubtful accounts receivable (amount andpercentage of gross receivable) at the end of 2007? m. What is the amount of inventory reported by Coca-Cola at December 31, 2007, and by PepsiCoat December 29, 2007? What percent of total assets is invested in inventory by each company?n. What inventory costing methods are used by Coca-Cola and PepsiCo? How does each companyvalue its inventories?o. Compute and compare the inventory turnover ratios and days to sell inventory for Coca-Colaand PepsiCo for 2007. Indicate why there might be a significant difference between the twocompanies.m. What is the amount of inventory reported by Coca-Cola at December 31, 2007, and by PepsiCoat December 29, 2007? What percent of total assets is invested in inventory by each company?n. What inventory costing methods are used by Coca-Cola and PepsiCo? How does each companyvalue its inventories?o. Compute and compare the inventory turnover ratios and days to sell inventory for Coca-Colaand PepsiCo for 2007. Indicate why there might be a significant difference between the two companies.