The Pepsi Cola Company owns some of the world's most well-known soft drinks, brands ranging from Pepsi Cola to Seven – Up and Mirinda. In fact, the Pepsi Cola Company has developed a well diversified portfolio of products meant to cover all ranges of taste, age and consumer preference. Initially, there was Pepsi Cola and a whole range of brands developed along this line to match the diet orientation of certain times (Pepsi Diet), the preference of cola and sour taste (Pepsi Lime, Pepsi Twist) or different other tastes merged with the cola taste (Pepsi Wild Cherry or Pepsi Vanilla).
             However, as mentioned, the company also developed its portfolio of products by purchasing other brands. In 1964, it acquired Mountain Dew, from the Tip Corporation, while in 1986, 7 – Up was acquired in Canada, as well as Mug Root Beer. Among its other products, we can mention Lipton Iced Tea, Mirinda Orange, Tropicana Twister Soda, Aquafina or Sierra Mist1.
             The history of Pepsi Cola begins in 1898, when a young pharmacist called Caleb Bradham developed a combination of soft drinks called "Brad's Drink" in the beginning. He turns the name to Pepsi Cola and registers the patent with the US Patent Office in 1902. The initial experimentation turns to a real business. After initial decades of huge success, the 1920s brought two successive bankruptcies and several ownership changes. 1934 marked an expected revival and the company has been increasingly profitable ever since, bringing in new brands to the portfolio and promoting a well-known image throughout the world.
             According to page 75 of the 2005 Annual Report, the financial statements were audited by KPMG LLP and they included the management's assessment of the effectiveness of its internal controls2.
             The four main basics financial statements are the balance sheet, the income statement, the cash flow statement and the statement of shareholders' equity...