Use the 2019 Form 10-K (fiscal year ended December 29, 2019) for Coca-Cola Bottling Co.

Consolidated to complete the following requirements. Be aware that Coca-Cola Bottling Co. Consolidated (COKE) is a separate company from the Coca-Cola Company (KO), so do not

confuse them. You can use the EDGAR system or the company's website at:

www.cokeconsolidated.com.

REQUIRED

1. Does COKE consider shipping and handling costs and advertising costs to be direct or

indirect costs in relation to the manufacturing of its products?

a.___________________________

2. Based on COKE's discussion the seasonality of its business ("Item 1. Business"), should

the depreciation of production equipment recorded in a given month be based on the

volume of drinks produced that month, or should the depreciation for each month be

1/12th of the estimated annual depreciation COKE expects to incur? Explain your

answer.

..

3. As "Item 2. Properties" indicates, COKE appears to have significant excess capacity at its

plants. Approximately what percentage of available production capacity was NOT being

used by COKE in 2019? What are some possible reason COKE might want to have this

much excess capacity?

a.___________________________