1.b is 5 million instead of 50 million

1) Consider the following events that might have occurred to Coca Cola's company in 2018. For each one, indicate which line items in Coke's balance sheet would be affected and by how much. Also indicate the change to Coca Cola's book value of equity. Use the balance sheet provided. a. Coca Cola used all its available cash and cash equivalents to repay its long- term liabilities. b. $550 million worth of Coca Cola's uninsured inventory was destroyed. c. Coca Cola's used $50 million in cash and $5 million in new long-term debt to purchase a $10 million building. d large customer owing $30 million for products it already received declared bankruptcy, leaving no possibility that Coca Cola would ever receive payment. e. Cocu Cola discovered a new manufacturing process that will cut the cost of its flagship product by more than 50%. f. A key competitor announces a radical new pricing policy that will drastically undercut Coca Cola's prices. 2) Using the financial statement data and for Coca Cola Corp. a. By what percentage did Coca Cola revenues grow each year from 2016 to 2018? b. By what percentage did net income grow each year? c. Why might the growth rates of revenues and net income differ? 3) Using Coca Cola's financial statement data. Suppose Coca Cola had purchased additional equipment for $670 million at the end of 2015, and this equipment was depreciated by S80 million per year in 2011, 2012, and 2013. Given a tax rate of 35%, what impact would this additional purchase have had on Coca Cola's net income in years 2016-2018? THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2017 $ ,926 2,025 10,951 5,013 3.396 2,766 1,962 6,546 30,634 19.407 867 4.139 2.667 R0232 6,682 $ 6,006 9,352 15,358 5,317 3,667 2,655 2,000 219 7,329 36,545 20,856 1,096 4,230 330 8,203 6,729 10,263 224 9,401 $83.216 $ 87,896 n eppure) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASIL CASH FOUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade cuts receivable, les allows of $489 and 54177, respectively Inventories Prepaid expense and other acts Auch for sale Authold for sale discontinued operatis TOTAL CURRENT ASSETS FOUTTY METIOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS DEFERRED INCOME TAX ASSETS PROPERTY PLANT AND EQUIPMENT et TRADEMARKS WITH INDEFINITE LIVES BOTILERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS BILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Laws and notes payable Curreht maturities of long-terin debt Accrued income taxes jahilies held for sale iabilities held for sale - discontinued operations TAL CURRENT LIABILITIES WG-TERM DEBT TER LIABILITIES ERRED INCOME TAX LIABILITIES COCA-COLA COMPANY SHAREOWNERS' EQUITY mmon stock, 50.25 par value; Authorired - 11,200 shares sued - 7,040 and 7,040 shares, respectively tal surplus ested carnings mulated other comprehensive income (loss) ury stock, al cost-2,772 and 2,781 shares, respectively Y ATTRIBUTARLE TO SHAREOWNERS OF THE COCA-COLA COMPANY ATTRIBUTARLE TO NONCONTROLLING INTERESTS EQUITY CAL LIABILITIES AND EQUITY $ $ 8,932 13,194 4,997 378 1,722 29,223 25,364 7,638 1,933 8,748 13,205 3,298 410 37 1,496 27,194 31,182 8,021 2,522 1,760 16,520 63.234 (12,814) (51,719) 16,981 2,077 19,058 $ 83,216 1,766 15,864 60,430 (10,305) (50,677) 17,072 1,905 18,977 $ 87,896 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 2016 2015 2017 1,079 Year Tinded December 31, (In millions except per share data) NET OPERATING REVENUES Sats Cost of goods sold -GROSS PROFIT Selling general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) nel Other income (loss) - net INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes from continuing operations NET INCOME FROM CONTINUING OPERATIONS Income (loss) from discontinued operations (net of income taxes of $126, S47 and SM, respectively) CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 31.256 $ 35,410 $ 41,863 11.770 13,255 16,465 20,086 22,155 25,398 10. 12.654 15.370 1,902 1,371 8.700 7,599 8,657 677 642 919 841 733 1.008 1.071 (1.121) (1,764)_ (1,265) R350 6,742 8,136 1.623 S.560 1.586 6,727 1,182 6,550 (251) 101 6,476 1,283 4235 6,550 23 $ 6,434 S 1,248 $ 6,527 $ $ 1.51 $ $ Basic net income per share from continuing operations! Basic net income (loss) per share from discontinued operations! BASIC NET INCOME PER SHARE Siluted net income per share from continuing operations iluted net income (loss) per share from discontinued operations LUTED NET INCOME PER SHARE ERAGE SHARES OUTSTANDING - BASIC ct of dilutive securities RAGE SHARES OUTSTANDING DILUTED 1.58 (0.07) 1.51 1.57 (0.07) 1.50 4.259 40 4,299 0.28 $ 0.02 0.299 $ 0.27 0.02 0.29 S 4,272 $ 1.49 4,317 4,324 4,367 carsh you have lett 2017 2017 2016 2018 $ $ 1,283 $ 6.550 6,476 251 6,727 1.086 260 219 (1.256) (628) (450) (457) 6,550 1,787 258 (RS) (449) 158 1,146 647 (224) 189 1.450 1,218 (269) 3.44 KZ (1.202) 7,320 (225) 8,792 6,930 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Finded December 31, (In millions) OPERATING ACTIVITIES Consolidated met income (Income loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation expce Deferred income taxes Equity (income) loss-het of dividends Foreign currency adjustments Significant (gains) locs on sales of acts-net Other operating charges Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITTES Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and no marketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipmeht 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) (2254) (16,626) 17,842 (838) 1,035 (2,262) 150 (305) (1,005) 27,339 (30,568) 1,476 (1,912) (6,644) (243) (10,552) 29,857 (28,768) 1,595 (3,682) (6320) (91) (1,409) 27,281 (25,615) 1,434 (3,681) (6,043) 307 (421) 2,945 6,373 9,318 (2,477) 8,850 6,373 367 6,006 392 8,926 $ $ 8,555 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY. 2015 2017 2016 4,259 4,288 4,324 53 (329) 4,268 1,760 (82) 4.259 1,760 (86) 4.288 1,760 $ $ $ 15,864 467 14.993 655 14,016 589 130 258 225 219 3 16,520 15,864 14,993 65,502 65,018 Year Ended December 31, (In millions except for share data) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING Balance at beginning of year Treasury stock issued to employees related to stock compcnsation plans Purchases of stock for treasury Balance at chd of year COMMON STOCK CAPITAL SURPLUS Balance at beginning of year Stock issued to employees related to stock compensation plans Tix benefit (charge) from stock compensation plats Stock-based compensation expche Other activities Balance at end of year REINVESTED EARNINGS Balance at beginning of year Adoption of accounting standards Net Income attributable to shareowners of The Coca-Cola Company Dividends (per share - $1.56, $1.48 and $1.40 in 2018, 2017 and 2016, respectively) Balance at end of year ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year Adoption of accounting standards Net other comprehensive income (loss) Balance at end of year TREASURY STOCK Balance at beginning of year Treasury stock issued to employees related to stock compensation plans Purchases of stock for treasury Balance at end of year TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at beginning of year Net income attributable to no controlling interests Net forcign currency translation adjustments Dividends paid to no controlling interests Contributions by noncontrolling interests Business combinations Deconsolidation of certain chtities Other activities 60,430 3,014 6,434 (6,644) 63,234 1.248 (6,320) 60,430 6,527 (6,043) 65,502 (11,205) (10,174) (10,305) (409) (2,100) (12,814) 900 (10,305) (1.031) (11,205 (50,677) 704 (1,746) (51,719) $ 16,981 (47,988) 909 (3,598) (50,677) $ 17,072 (45,066) 811 3,733) (47,988) $ 23,062 $ 1,905 $ 158 $ 210 (31) (15) (25) TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS $ 2,077 $ 1,905 $ 158