Question
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
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 |
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