Question
QUESTION 2 Briefly explain how common-size analysis is used to evaluate the financial health of an organization. (2 marks) COCA COLA COMPANY INCOME STATEMENT FOR
QUESTION 2
- Briefly explain how common-size analysis is used to evaluate the financial health of an organization. (2 marks)
| COCA COLA COMPANY |
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| INCOME STATEMENT |
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| FOR YEAR ENDED DECEMBER 31 | ||||||
| (RM amounts are in million) |
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| 2019 |
| 2018 |
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Net Sales |
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| 35119 |
| 30900 | |
Cost of goods sold |
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| 12693 |
| 11066 | ||
Gross margin |
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| 22426 |
| 19902 | |
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Expenses: |
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Selling and administrative expenses |
| 13158 |
| 11358 | |||
Other operating expenses |
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| 819 |
| 313 | ||
Operating income |
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| 8449 |
| 8231 | ||
Interest expense |
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| 733 |
| 355 | |
Other income (expenses; net) |
| 6477 |
| 968 | |||
Income before taxes |
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| 14193 |
| 8864 | ||
Income tax expense |
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| 2384 |
| 2040 | ||
Net Income |
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| 11809 |
| 6824 |
Required:
Prepare common-size analysis of the company for Year 2019 and 2018.
(8 marks)
(Total: 10 marks)
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