DE13-19 The Coca-Cola Company has earned solid rates of return on its assets and its stockholders' equity
Question:
DE13-19 The Coca-Cola Company has earned solid rates of return on its assets and its stockholders' equity in recent years. Coca-Cola's 1999 financial statements reported the fol- lowing items with 1998 figures given for comparison (adapted, in millions): Balance sheet 1999 1998 Total current assets. $ 6,480 $ 6,380 Total long-term assets. 15.143 12,765 Total assets. $21.623 $19.145 Total liabilities.. $12,110 $10,742 Total stockholders' equity (all common). 9,513 8.403 Total liabilities and equity $21.623 $19,145 Income statement Net sales. Cost of goods sold. Gross profit.. Selling, administrative, and general expenses.. Interest expense All other expenses, net. Net income.. $19,805 6.009 13,796 9,814 337 1,214 $ 2.431 Compute Coca-Cola's rate of return on total assets and rate of return on common stockhold- ers' equity for 1999. Do these rates of return look high or low?
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones