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Coca-Cola Company, a leading beverage company, provided the following data: Sales Revenue: $1,800,000,000 Variable Costs: $1,000,000,000 Fixed Costs: $400,000,000 Interest Expense: $60,000,000 Depreciation: $50,000,000 Tax

  1. Coca-Cola Company, a leading beverage company, provided the following data:
    • Sales Revenue: $1,800,000,000
    • Variable Costs: $1,000,000,000
    • Fixed Costs: $400,000,000
    • Interest Expense: $60,000,000
    • Depreciation: $50,000,000
    • Tax Rate: 25%
    • Total Assets: $1,500,000,000
    • Total Liabilities: $900,000,000
    • Shareholders' Equity: $600,000,000

Requirements:


    1. Prepare an Income Statement for Coca-Cola.
    2. Calculate the Contribution Margin.
    3. Determine the Break-Even Point in units (assume the average sales price per unit is $2).
    4. Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.

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