Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Questions with detailed explanations please 1a . The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and

Questions with detailed explanations please

1a. The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and they reported investment revenue of more than $1 billion in 2017. Explain why Coke accounts for some of its investments by the equity method and what that means. Is the over $1 billion in revenue reported in 2017 cash they can use? Provide an explanation for your response

1b. Temporary differences result in future taxable or deductible amounts when the related asset or liability is recovered or settled. Some differences, though, are not temporary. What events create temporary differences? What events create permanent differences? Using an event at your own company or a company you are familiar with, provide an example of temporary and permanent differences.

1c. Discuss the role that pension funds play in company pension plans.What benefits accrue to companies who elect to use pension funds?How does the use of a pension fund change the accounting that must be done with respect to employee pension amounts?

1d. Discuss the 4 types of dividends.Whichof the 4 isused most often, and why?What may happen to a companys share price when dividends areannounced orpaid?Why do you think this is so?

1e. In a recent annual report, J.M. Smucker, changed a previously reported inventory amount of $52 million to $54 million. How can an accounting change cause a company to increase a previously reported inventory amount? Are all accounting changes reported this way? If not, what are the other approaches to reporting accounting changes and provide an example for each.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Statements A Manager S Guide

Authors: David S. Murphy Ph.D. ,Ernest W. Murphy

1st Edition

1530688787, 978-1530688784

More Books

Students also viewed these Accounting questions