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Answer fully thanks ANALYZE, THINK, COMMUNICATE ATC 9-1 Business Applications Case Analyzing segments at Coca-Cola The following excerpt is from Coca-Cola Company's 2014 annual report
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ANALYZE, THINK, COMMUNICATE ATC 9-1 Business Applications Case Analyzing segments at Coca-Cola The following excerpt is from Coca-Cola Company's 2014 annual report filed with the SEC: Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury related items, such as interest income and expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss before income taxes. Below are selected segment data for Coca-Cola Company for the 2014 and 2013 fiscal years. Dollar amounts are in millions. Eurasia& North Latin Africa Europe America America Pacific 2014 Fiscal Year Net operating revenues Income before taxes Identifiable operating assets 1,298 3,358 2.426 33,066 1,793 2013 Fiscal Year Net operating revenues Income before taxes Identifiable operating assets 1.273 3,731 2,918 33,964 1,922 $2,730 $5,536 $4,657 $21,479 $5,746 1,084 2,852 2,316 2,447 2,448 $2,763 $5,334$4,939 $21,590 $5,869 2,432 2,478 ,087 2,859 2,908 Required a. Compute the ROI for each of Coke's geographical segments for each fiscal year. Which segment appears to have the best performance during 2014 based their ROIs? Which segment showed the most improvement from 2013 to 2014 Assuming Coke's management expects a minimum return of 30 percent, calculate the residual income for each segment for each fiscal year. Which segment appears to have the best perfor- mance based on residual income? Which segment showed the most improvement from 2013 to 2014? b Step by Step Solution
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