The financial statements of The Coca-Cola Company and PepsiCo, Inc. can be accessed at the book’s website.
Instructions
Use information found at the book’s website to answer the following questions.
(a) Based on the information contained in these financial statements, determine each of the following for each company.
(1) Cash used in (for) investing activities during 2006 (from the statement of cash flows).
(2) Cash used for acquisitions and investments in unconsolidated affiliates (or principally bottling companies) during 2006.
(3) Total investment in unconsolidated affiliates (or investments and other assets) at the end of 2006.
(4) What conclusions concerning the management of investments can be drawn from these data?
(b) (1) Briefly identify from Coca-Cola’s December 31, 2006, balance sheet the investments it reported as being accounted for under the equity method. (2) What is the amount of investments that Coca-Cola reported in its 2006 balance sheet as “cost method investments,” and what is the nature of these investments?
(c) In its Note 11 on Financial Instruments, what total amounts did Coca-Cola report at December 31, 2006, as: (1) trading securities, (2) available-for-sale securities, and (3) held-to-maturity securities?