1.

a) On the 2018 statement of cash flows, not including net income, what was the largest item (absolute value) listed in the Operating Section? Is this added or subtracted from Net Income?

A. Other operating charges; added to net income

B. Deferred income taxes; subtracted from net income

C. Significant (gains) losses on sales of assets, added to Net income

D. Net change in operating assets and liabilities; subtracted from net income

b) Does Coca-Cola use the direct or indirect method to report cash flows from operations?

A. Indirect

B. direct

c) Examine the investing and financing activities. List the three largest outflows of cash during 2018.

A. Issuances of debt, payments of debt, and dividends paid

B. Purchase of investments, payments of debt, and dividends paid

C. Purchases of investments, proceeds from disposal of investments and issuances of debt

D. Purchases of investments, issuances of debt and payments of debt

d) What was free cash flow for the year ended 2018?

2018 2017 2016 6,550 $ 6,476 $ 1,283 $ 6,550 251 (101) 6,727 1,182 1,086 1,260 1,787 225 219 258 (450) (1,256) (856) (457) (628) (449) (38) 281 158 189 1,459 1,146 558 1,218 647 682 (269) (224) (1,202) 3,464 (225) 7,320 6,930 8,792 Year Ended December 31, (In millions) OPERATING ACTIVITIES Consolidated net income (Income) loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss - net of dividends Foreign currency adjustments Significant (gains) losses on sales of assets net Other operating charges Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by (used in) investing activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by (used in) financing activities CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations Net cash provided by (used in) financing activities from discontinued operations Net cash provided by (used in) discontinued operations EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year Less: Restricted cash and restricted cash equivalents at end of year Cash and cash equivalents at end of year (7,789) 14,977 (1,040) 1,362 (1,347) 245 (60) 6,348 (17,296) 16,694 (3,809) 3,821 (1,675) 104 (93) (2,254) (16,626) 17,842 (838) 1,035 (2,262) 150 (305) (1,004) 27,339 (30,568) 1,476 (1,912) (6,644) (243) (10,552) 29,857 (28,768) 1,595 (3,682) (6,320) (91) (7,409) 27,281 (25,615) 1,434 (3,681) (6,043) 79 (6,545) 307 (421) 205 111 (58) (38) 15 91 (262) 241 (5) 2,945 (2,477) 1,238 6,373 8,850 7,612 9,318 6,373 8,850 392 367 295 $ 8,926 $ 6,006 $ 8,555 Refer to Notes to Consolidated Financial Statements