Refer to the financial statements and related notes of The Coca-Cola Company in Appendix A of this

Question:

Refer to the and related notes of The Coca-Cola Company in Appendix A of this book.

Required
1. Was the fair value of the company’s available-for-sale securities higher or lower than the cost at the end of 2004? By how much?
2. Is the fair value of the company’s held-to-maturity securities different from their cost at December 31, 2004? At December 31, 2003?
3. Explain why the company has cost method investments.
4. If the company included the assets and liabilities of its equity investments in its December 31, 2004 instead of using the equity method, determine whether the effects on the assets, liabilities, and debt ratio would be material.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...