Course: Financial Statement Analysis

Company Coca Cola (Balance Sheet and Income statement attached to Moodle week 1)

Consider the annual reports of Coca Cola for a period of 2 years (2019 and 2020). Using the different financial ratios, we covered in this course you are required to compare year 2019 with 2020.

Question 1: For the Balance sheet:

A. What is the percentage change of total assets? (Show calculations)

B. What is the percentage change of current Liabilities? (Show calculations)

C. What is the percentage change of total equity? (Show calculations)

D. Include 3 Ratio calculations for the balance sheet and show your formulas and calculations and explain your findings of each ratio.

E. Identify one strength and weakness and make recommendations for future improvement

Question 2: For the Income Statement

A. What is the percentage change of Revenue? (Show calculations)

B. What is the percentage change of Operating Income? (Show calculations)

C. What is the percentage change of Interest Expense? (Show calculations)

D. Include 3 Ratio calculations for the income statement and show your formulas and calculations and explain your findings of each ratio.

E. Identify one strength and weakness and make recommendations for future improvement.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
CONSOLIDATED NET INCOME	$ 7 768	$ 8 985
Depreciation and amortization	1 536	1 365
Stock-based compensation expense	126	201
Deferred income taxes	-18	-280
Equity (income) loss - net of dividends	-511	-421
Foreign currency adjustments	-88	91
Significant (gains) losses on sales of assets - net	-914	-467
Other operating charges	556	127
Other items	699	504
Net change in operating assets and liabilities	690	366
Net cash provided by operating activities	9 844	10 471
INVESTING ACTIVITIES
Purchases of investments	-13.583	-4.704
Proceeds from disposals of investments	13 835	6 973
Acquisitions of businesses, equity method investments and nonmarketable securities	-1.052	-5.542
Proceeds from disposals of businesses, equity method investments and nonmarkatable securities	189	429
Purchases of property, plant and equipment	-1.177	-2.054
Proceeds from disposals of property, plant and equipment	189	978
Other investing activities	122	-56
Net cash provided by (used in) investing activities	-1.477	-3.976
FINANCING ACTIVITIES
Issuances of debt	26 934	23 009
Payments of debt	-28.796	-24.850
Issuances of stock	647	1 012
Purchases of stock for treasury	-118	-1.103
Dividends	-7.047	-6.845
Other financing activities	310	-227
Net cash provided by (used in) financing activities	-8.070	-9.004
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	76	-72
CASH AND CASH EQUIVALENTS
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year	373	-2.581
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at the Beginning of the Year	6 737	9 318
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at the End of the Year	7 110	6 737
Restricted Cash and Restricted Cash Equivalents not included in Cash and Cash Equivalents on Balance Sheet	315	257
Cash and cash equivalents	$ 6 795	$ 6 480

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 6.795	$ 6.480
Short-term investments	1.771	1.467
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	8.566	7.947
Marketable securities	2.348	3.228
Trade accounts receivable, less allowances of $526 and $524, respectively	3.144	3.971
Inventories	3.266	3.379
Prepaid expenses and other assets	1.916	1.886
TOTAL CURRENT ASSETS	19.240	20.411
EQUITY METHOD INVESTMENTS	19.273	19.025
OTHER INVESTMENTS	812	854
OTHER ASSETS	6.184	6.075
Deferred Income Tax Assets	2.460	2.412
PROPERTY, PLANT AND EQUIPMENT - net	10.777	10.838
TRADEMARKS WITH INDEFINITE LIVES	10.395	9.266
GOODWILL	17.506	16.764
OTHER INTANGIBLE ASSETS	649	736
TOTAL ASSETS	87.296	86.381
CURRENT LIABILITIES
Accounts payable and accrued expenses	11.145	11.312
Notes and Loans Payable, Current	2.183	10.994
Current maturities of long-term debt	485	4.253
Accrued income taxes	788	414
TOTAL CURRENT LIABILITIES	14.601	26.973
LONG-TERM DEBT	40.125	27.516
OTHER LIABILITIES	9.453	8.510
Deferred Income Tax Liabilities	1.833	2.284
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
Common stock, $0.25 par value; authorized 11,200 shares; issued 7,040 shares	1.760	1.760
Capital surplus	17.601	17.154
Reinvested earnings	66.555	65.855
Accumulated other comprehensive income (loss)	(14.601)	(13.544)
Treasury stock, at cost 2,738 and 2,760 shares, respectively	(52.016)	(52.244)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY	19.299	18.981
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS	1.985	2.117
TOTAL EQUITY	21.284	21.098
TOTAL LIABILITIES AND EQUITY	$ 87.296	$ 86.381