HORIZONTAL ANALYSIS USING BALANCE SHEETS The consolidated 2009 and 2008 balance sheets for Cola, Inc., and Subsidiaries appear below.

Cola, Inc., and Subsidiaries Consolidated Balance Sheet

(In millions except per share amounts)

December 31, ASSETS 2009 2008 Current assets:

Cash and cash equivalents $ 226.9 $ 169.9 Short-term investments at cost which approximates market 1,629.3 1,888.5 Accounts and notes receivable, less allowance:

$128.3 in 2009 and $112.0 in 2008 1,883.4 1,588.5 Inventories 924.7 768.8 Prepaid expenses, taxes, and other current assets 499.8 426.6 Total current assets $ 5,164.1 $ 4,842.3 Investments in affiliates and other assets 1,756.6 1,707.9 Property, plant, and equipment, net 8,855.6 7,442.0 Intangible assets, net 7,929.5 6,959.0 Total assets $23,705.8 $20,951.2 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:

Short-term borrowings $ 2,191.2 $ 706.8 Accounts payable 1,390.0 1,164.8 Income taxes payable 823.7 621.1 Accrued compensation and benefits 726.0 638.9 Accrued marketing 400.9 327.0 Other current liabilities 1,043.1 1,099.0 Total current liabilities $ 6,574.9 $ 4,557.6 Long-term debt 7,442.6 7,964.8 Other liabilities 1,342.0 1,390.8 Deferred income taxes 2,007.6 1,682.3 Total liabilities $17,367.1 $15,595.5 Shareholders’ equity:

Capital stock, par value 12 3 C= per share: authorized 1,800.0 shares, issued 863.1 shares 14.4 14.4 Capital in excess of par value 879.5 667.6 Retained earnings 6,541.9 5,439.7 Currency translation adjustment and other (183.9) (99.0)

Less: Treasury stock, at cost: 64.3 shares in 2009 and 2008 (913.2) (667.0)

Total shareholders’ equity 6,338.7 5,355.7 Total liabilities and shareholders’ equity $23,705.8 $20,951.2 Required:
. Calculate the percentage that Cola’s total assets increased by during 2009.
. Determine whether any of the asset categories experienced larger increases than others.
. Indicate where Cola acquired the capital to finance its asset growth.
. Indicate whether any of the individual liability or equity items increased at a rate different from the rate at which total liabilities and equity increased.
Exercise