Respond to the following in a minimum of 175 words: As discussed in the chapter, 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.
Q: of medicines for diabetes P 10,000.00 70,000.00 Sale of medicine for hypertension…
A: Medical, dental and veternary services except those rendered by professional are VAT exempted…
Q: Describe any debates to overturn the ACA
A: The Affordable Care Act (ACA), also known as Obamacare, has been a subject of debate and attempts to…
Q: Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2022.…
A: It is important for companies to maintain an appropriate balance between current assets and current…
Q: Under nominal circumstances, the relationship between total sales revenue and output volume over the…
A: The relationship between total sales revenue and output volume is influenced by several factors,…
Q: Juan died leaving his wife, Juana, the following net conjugal properties: Gross estate, including…
A: To compute the estate tax due, we need to determine the net estate first. The net estate is…
Q: ABC Company is experiencing financial difficulty and is negotiating debt restructuring with its…
A: Answer:- Debt restructuring meaning:- Debt restructuring is a procedure that enables an organization…
Q: Requirements 1. Supply the missing amounts in the preceding table. 2. Prepare the income statement…
A: Operating expenses are the expenses that any entity or business incurs in its normal course of…
Q: be ful for 10 years. Prepare Celine Dion's journ the patent and 2019 amortization. entries to record…
A: Patent is an intellectual property, it is an exclusive right provide to inventor to prevent others…
Q: 9-23 Problem 9-6A (Algo) Understand a bond amortization schedule (LO9-5) [The following information…
A: Bonds provide a way for issuers to borrow money from investors and for investors to earn a fixed…
Q: Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total…
A: Lets understand the basics.Contribution margin ratio is a ratio which shows contribution as a…
Q: A company purchased 90 units for £20 each on January 31. It purchased 200 units for £30 each on…
A: The FIFO stands for First In First Out. Using FIFO method, the older inventory is sold first. The…
Q: Cascade Company was started on January 1, Year 1, when it acquired $167,000 cash from the owners.…
A: Income Statement -The Income Statement includes Revenue earned and Expenses incurred during the…
Q: a. Compute the unit product cost for Year 1, Year 2, and Year 3. o. Prepare an income statement for…
A: Under absorption costing, unit product cost includes costs such as direct materials, direct labor…
Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 440,000 shares of $8 par…
A: When the corporate charter states the nominal stock price of a share, it is referred to as par value…
Q: On January 1, 2025, Crane Animation sold a truck to Cullumber Finance for $40,000 and immediately…
A: The lease is a legal agreement between the lessor and the lessee. The lessor offers the asset on…
Q: Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and…
A: The predetermined overhead rate is calculated as estimated overhead costs divided by the estimated…
Q: Current Attempt in Progress Sunland Company acquires a delivery truck at a cost of $53,000 on…
A: Depreciation rate as per declining balance method = 2 × Depreciation rate as per straight line…
Q: 1106 Scenarlo A: After 2 years of using the equipment, the company estimates that the residual value…
A: Changes in accounting estimates should be made when new information or circumstances indicate that…
Q: E3.6 (LO 2, 3, 4), AN Mendoza Company accumulates the following adjustment data at December 31. 1.…
A: The unearned revenue represents the advance received from the customers for which the entity has to…
Q: Assume that Toys Galore store bought and sold a line of dolls during December as follows: Dec. 1…
A: The value of the ending inventory is affected by the inventory valuation method. According to FIFO,…
Q: For each of the following transactions below: 1. prepare the journal entries (if one is required) to…
A: No.Account NameDebitCredita.Prepaid rent213000Cash213000Adjusting Entry:a.Rent expense (213000 /…
Q: Current Attempt in Progress Sweet Company is in the process of preparing its financial statements…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs…
A: Contribution margin = Selling price - Variable costThe savings in cost by eliminating commercial…
Q: Concord Video Center accumulates the following cost and net realizable data at December 31.…
A: The question is based on the concept of Financial Accounting.Inventory is usually recorded at the…
Q: Ayala Corporation accumulates the following data relative to jobs started and finished during the…
A: The difference between the standard cost of overhead allowed for the actual output obtained and the…
Q: ABC Company is experiencing financial difficulty and is negotiating debt restructuring with its…
A: Shares are generally issued at par or their nominal value, but sometimes the shares are issued at an…
Q: Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107-were…
A: T-accounts are an informal term for a group of financial records that use double-entry accounting.…
Q: Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of…
A: The income which is subject to taxable at ordinary rates is known as the ordinary income. The…
Q: 1 Use the following table for the following questions (Hint Identify which accounts are in…
A: Net Sales -Net Sales are the sales after deducting Sales returns and allowances and Sales discounts.…
Q: The manager of Gratiot Flooring estimates operating costs for the year will include $591,000 in…
A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…
Q: Aunt Martha Bakery reported net sales revenue of $39,000 and cost of goods sold of $28,000. Compute…
A: Gross profit is the amount of profit earned by the entity after deducting the cost of goods sold…
Q: Required information [The following information applies to the questions displayed below] Electronic…
A: Given,Value of bond = $ 11,300,000Interest rate = 9% Years = 5 years
Q: Shady Fabrication Group (SFG) manufactures components for manufacturing equipment at several…
A: ABC costing, also known as Activity-Based Costing, is a method of cost allocation that assigns costs…
Q: At December 31, 2023, Novak Corporation had the following shares outstanding: 6% cumulative…
A: Earnings per share is the per share amount of earnings available to the common shareholders. It is…
Q: You have the following information for Cullumber Inc. for the month ended October 31, 2025.…
A: The inventory valuation method includes:FIFO methodLIFO MethodWeighted average methodFIFO method -…
Q: Measure maps Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that…
A: At Break-evenpoint, Fixed cost = Contribution margin Break-even point is point at which the…
Q: During the current year, Tyson sells land to Black Corporation for $170,000. Tyson purchased the…
A: A formal agreement between two or more parties to run a business and split the profits is called a…
Q: st 1 -u ($ and units in 000s) Units Sales COGS Gross Profit Selling Expense Administrative Expense…
A: The common-size statements are prepared by the entities to analyze the percent variation in the…
Q: The following is information for Monty Corp. for the year ended December 31, 2023: Sales revenue…
A: Operating income is the difference between total revenue and total operating expense of the…
Q: XYZ Corporation had the following cash flow information for the year: Cash inflows from…
A: Net cash flow is a measure of the overall change in a company's cash position over a specific…
Q: Sales and Production Budgets Archer Company produces two products: the custom and the basic. The…
A: Sales budget :— This budget is prepared to estimate the sales to be generated during the period.…
Q: On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: Required: Assume that the company allocates service department costs to production departments using…
A: Secondary distribution statementMeans a statement in which overhead of service department are…
Q: As of December 31 of the current year, Armani Company’s records show the following. Hint: The owner…
A: Income statement is one of the financial statement which is used for the purpose of reporting the…
Q: Explain the nature of the liability, if any, by Mr. Daniel in each of the following situations. a.…
A: Mr Daniel's liability for unpaid debts would be unlimited and he may need to pay out of his private…
Q: Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system.…
A: The entity makes sales on cash and also sales on account. The entity makes sales on account to…
Q: Daisy, an Australian resident taxpayer, received a fully franked dividend of $2,800 from a small…
A: Daisy must include the grossed-up amount of the fully franked dividend she received from Step Up Pty…
Q: ! Required information Use the following information for the Exercises 8-10 below. (Static) [The…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. The gross margin…
Q: Costs Miller Company's contribution format income statement for the most recent month is shown…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Thalassines Kataskeves, S.A, of Greece makes marine equipment. The company has been experiencing…
A: Even if a product ceases to exist, there may be depreciation, contractual commitments, and other…
Respond to the following in a minimum of 175 words:
As discussed in the chapter, 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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- You are a financial Manager of Chevron Corp. You need to assess the effectiveness of working capital management of the company for 2018 using the following data. What is the 2018 Receivable turnover? 2017 Account Receivable = 15,353 000 2018 Account Receivable = 15.050,00O 2017 Inventory = 5,585.000 2018 Inventory = 5 704.00O 2017 Accounts Payable= 14 565 00I 2018 Accounts Payable = 13 953 000 2017 Sales 134,674 000 2018 Sales 158.902 000. 2017 Cost of Sales = 95 114.000 2018 Cost of Sales = 113 997 000 2017 Purchases= 95 114 000 2018 PurchaSes = 123 435 000Refer to the financial statements and related disclosure notes of The Kroger Company for the fiscal year endingJanuary 30, 2016. You can locate the report online from “investor relations” at www.kroger.com.Notice that Kroger’s net income has increased over the three years reported. To supplement their analysis ofprofitability, many analysts like to look at “free cash flow.” A popular way to measure this metric is “structuralfree cash flow” (or as Warren Buffett calls it, “owner’s earnings”), which is calculated as net income from operations, plus depreciation and amortization, minus capital expenditures.Required:Determine free cash flows for Kroger in each of the three years reported. Compare that amount with net incomeeach year. What pattern do you detect?Central Bank has the following information (in $million). 2017 ($ million) 2018 ($ million) Revenue 780 890 Net income 240 375 Assets 22,450 27,850 Equity 2,250 2,980 Which of the following statements about Central Bank is CORRECT? Select one: a. From 2017 to 2018, its Return on Equity decreased, Return on Assets decreased, and Leverage Multiplier increased. b. From 2017 to 2018, its Return on Equity increased, Return on Assets increased, and Leverage Multiplier decreased. c. From 2017 to 2018, its Return on Equity increased, Return on Assets increased, and Leverage Multiplier increased. d. From 2017 to 2018, its Return on Equity increased, Return on Assets decreased, and Leverage Multiplier increased.
- You are a financial Manager of Chevron Corp. You need to assess the effectiveness of working capital management of the company for 2018 using the following data. What is the 2018 Inventory turnover? 2017 Account Receivable = 15,353,000 2018 Account Receivable = 15,050,000 2017 Inventory = 5,585,000 2018 Inventory = 5,704,000 2017 Accounts Payable = 14,565,000 2018 Accounts Payable = 13,953,000 2017 Sales = 134,674,000 2018 Sales = 158,902,000 2017 Cost of Sales = 95,114,000 2018 Cost of Sales = 113,997,000 2017 Purchases = 95,114,000 2018 Purchases = 123,435,000Cash flow identity. Use the data from the following financial statements in the popup window,. The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ (Round to the nearest dollar.)Andrew Potter is comparing the cash- flow- generating ability of Microsoft with that of Apple Inc. He collects information from the companies’ annual reports and prepares the following table. Cash Flow from Operating Activities as a Percentage of Total Net Revenue 2017 (%) 2016 (%) 2015 (%) Microsoft 43.9 39.1 31.7 Apple Inc. 27.7 30.5 34.8 As a Percentage of Average Total Assets 2017 (%) 2016 (%) 2015 (%) Microsoft 18.2 18.1 17.1 Apple Inc. 18.2 21.5 31.1 What is Potter likely to conclude about the relative cash- flow- generating ability of these two companies?
- You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the…You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the…You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: Table 1: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the…
- Cash flow identity. Use the data from the following financial statements in the popup window, . The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ 24,380. (Round to the nearest dollar.) The cash flow to creditors is $ (Round to the nearest dollar.)You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the course of 2018…You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information: FBC statement of financial position (R millions) 2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633 Total fixed assets 3 909 3 856 Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220 Long term debt 1 800 1 650 Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100 Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the course of 2018…