Awwain

PEPSI CO.

Before starting this project, the main concern was what topic to choose. The ACCA guidelines had given quite a number of options so I was double minded as to what topic to choose. After discussion with my mentor, I’ve decided to start my thesis on the following topic:

‘Analysis of financial situation of your choice of organization’.

There were several reasons for choosing this topic in particular. Firstly, it’s an opportunity to carry out an analysis of financial statements of a existent company which will enable me to realize the variation in ratios from year to year. Secondly, this topic has both numerical and theoretical aspects, which requires a mixture of skills and can be conducted with quite ease. Thirdly, information for this topic can be obtained with quite ease in the form of an annual report. Analysis of financial statements would also enable the users of the financial statements – shareholders in particular – to make investment decisions. This topic basically requires the candidate to compile the historical financial data of an organization, apply the formulas we’ve learned throughout our studies in ACCA on the financial statements of any organization and interpret them to the best of our knowledge. Interpretation and comparison of ratios with the past years or with any competitor is required as ratios themselves are meaningless. In my report, I will not be considering any competitor and would be comparing it with the previous year.

Now having decided the topic, next step was to decide the industry followed by the organization. After discussion with my mentor, I decided to target the industry of food and beverages. Pepsi Corporation was the first name that came into my mind which is regarded as one of the world’s largest beverage and snacks producer. Pepsi Co., which is a multi-national organization, involved with the manufacturing of food and beverages related products. Pepsi Co is the world leader in snacks and food earning...