• Coca-Cola Company invested $2 billion in expanding its bottling operations. The company reported the following financial information:
  • Investment in Bottling Operations: $2 billion
  • Total Assets: $80 billion
  • Total Liabilities: $40 billion
  • Net Income: $8 billion

• Requirements:
  1. Calculate Coca-Cola’s total assets after accounting for the investment in bottling operations.
  2. Prepare a balance sheet reflecting the investment in bottling operations and adjusted total assets.
  3. Analyze the impact of the investment on Coca-Cola’s financial leverage.
  4. Discuss the accounting treatment of investments in bottling operations in Coca-Cola’s financial statements.
  5. Evaluate the potential return on investment from Coca-Cola’s expansion of its bottling operations.