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Prior to making an investment in to any company, you would need to first have some opportunity to review and examine the financial records of the business. I have been given the chance to review the financial documents of two major businesses; Pepsi Co and The Coca Cola Company and decided which company is more fiscally sound. In order to make the best choice, I will look at the 3 financial statement analyses on each and every business and compare them. The three components of financial statement analysis I will review will be the Horizontal Analysis that assesses a collection of financial statement data over a time period. The objective of this analysis is to ascertain the increase or reduction that's taken place. The Vertical Analysis which evaluates financial statement data by expressing every thing in a financial statement as a percentage of a base level. Vertical analysis shows the relative dimensions that the groups in the balance sheet. Additionally, it can show the percentage change in the respective asset, liability, and stockholdersвЂ™ equity things. Finally the Ratio Analysis that expresses the relationship among selected items of financial statement information. The connection is expressed by percent, rate, or percentage (University of Phoenix, Axia College, 2009). First we will calculate the horizontal analysis for both companies. We look at the percentage change in current asset for Pepsi Co between 2004 and 2005. The percentage change was $10,454/ 8,639= 1.21% or 10,454-8,639/ 8,639= 21% increase. Then we'll look at the percentage change in current assets for Coco Cola between 2004 and 2005. The percentage change was $10,250/ 12,281= 0.83% or 10,250-12,281/ 12,281= 16.5% decrease. Based on these calculations, Pepsi Co increased their cur...