This and similar cases in later chapters focus on the financial statements of a real company: The Coca-Cola Company and Subsidiaries (NYSE: KO), a total beverage company whose products are sold in more than 200 countries and territories. Coca-Cola Company sells sparkling soft drinks, water, enhanced water, sports drinks, tea, coffee, and energy drinks. The business owns and markets four of the world’s top five nonalcoholic sparking soft drink brands: Coca-Cola, Diet Coke, Fanta, and Sprite. As you work each case, you will gain confidence in your ability to use the financial statements of real companies. Visit http://www.pearsonhighered.com/Horngren to view a link to Coca-Cola Company’s December 31, 2021 Annual Report.

Requirements 

1. How much in cash (including cash equivalents) did Coca-Cola Company have on December 31, 2021?

2. What were the company’s total assets at December 31, 2021? At December 31, 2020?

3. Write the company’s accounting equation at December 31, 2021, by filling in the dollar amounts:

Assets = Liabilities + Equity 

4. Identify total sales (net operating revenues) for the year ended December 31, 2021. How much did total revenue increase or decrease from December 31, 2020, to December 31, 2021?

5. How much net income (net earnings) or net loss did Coca-Cola Company earn for 2021 and for 2020? Based on net income, was 2021 better or worse than 2020?

6. Calculate Coca-Cola Company’s return on assets for the year ending December 31, 2021. Round to one decimal place.
7. How did Coca-Cola Company’s return on assets compare to PepsiCo, Inc.’s return on assets?