complete ALE 4A steps 1. Use the information in the Cohesion Case. You may not be able to calculate every ratio listed on page 111, but do the best you can. I do not want you to look up these company ratios. I want you to try and calculate them from the financial statements in the cohesion case. What do these ratios tell us about Coca Cola's overall financial position?

EXHIBIT 2 Coke's Balance Sheets (in millions of dollars) Liabilities Equity Source: Based on information at www.coca-colacompany.com CHAPTER 4 - THE INTERNAL ASSESSMENT 111 TABLE 4-9 A Summary of Key Financial Ratios III. Activity Ratios Inventory Turnover COGS/Inventory Whether a firm holds excessive stocks of inventories and whether a firm is slowly selling its inventories compared to the industry average IV. Profitability Ratios Gross Profit Margin Gross Profit/Sales The total margin available to cover operating expenses and yield a profit Operating Profit Margin Earning before interest and taxes EBIT Profitability without concern for taxes and Net Profit Margin SalesSalesNetincomeinterestAfter-taxprofitsperdollarofsales Return on Total Assets (ROA) Net income After-tax profits per dollar of assets; this ratio