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Provide four ratio calculations (i.e., one ratio each for liquidity, solvency, profitability, and market) as well as an analysis

Provide four ratio calculations (i.e., one ratio each for liquidity, solvency, profitability, and market) as well as an analysis

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I have to use the balance sheets below to

  • Provide four ratio calculations (i.e., one ratio each for liquidity, solvency, profitability, and market) as well as an analysis

Can you help with the calculations

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2018 2017 (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments $ 8,926 2,025 $ 6,006 9,352 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 10,951 15,358 Marketable securities 5,013 3,396 2,766 1,962 5,317 3,667 2,655 2,000 Trade accounts receivable, less allowances of $489 and $477, respectively Inventories Prepaid expenses and other assets Assets held for sale Assets held for sale – discontinued operations 219 6,546 7,329 TOTAL CURRENT ASSETS 30,634 36,545 20,856 1,096 4,230 330 EQUITY METHOD INVESTMENTS 19,407 867 OTHER INVESTMENTS OTHER ASSETS 4,139 2,667 8,232 6,682 DEFERRED INCOME TAX ASSETS PROPERTY, PLANT AND EQUIPMENT – net TRADEMARKS WITH INDEFINITE LIVES 8,203 6,729 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 51 138 10,263 274 GOODWILL 9,401 OTHER INTANGIBLE ASSETS 368 TOTAL ASSETS $ 83,216 $ 87,896 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt $ 8,932 13,194 4,997 $ 8,748 13,205 3,298 Accrued income taxes 378 410 Liabilities held for sale 37 Liabilities held for sale – discontinued operations 1,722 1,496 TOTAL CURRENT LIABILITIES 29,223 27,194 31,182 8,021 2,522 LONG-TERM DEBT 25,364 7,638 1,933 OTHER LIABILITIES DEFERRED INCOME TAX LIABILITIES THE COCA-COLA COMPANY SHAREOWNERS’ EQUITY Common stock, $0.25 par value; Authorized – 11,200 shares; Issued – 7,040 and 7,040 shares, respectively Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost - 2,772 and 2,781 shares, respectively 1,760 1,760 16,520 63,234 (12,814) (51,719) 15,864 60,430 (10,305) (50,677) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 16,981 2,077 17,072 1,905 TOTAL EQUITY 19,058 18,977 TOTAL LIABILITIES AND EQUITY $ 83,216 $ 87,896
Transcribed Image Text:THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2018 2017 (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments $ 8,926 2,025 $ 6,006 9,352 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 10,951 15,358 Marketable securities 5,013 3,396 2,766 1,962 5,317 3,667 2,655 2,000 Trade accounts receivable, less allowances of $489 and $477, respectively Inventories Prepaid expenses and other assets Assets held for sale Assets held for sale – discontinued operations 219 6,546 7,329 TOTAL CURRENT ASSETS 30,634 36,545 20,856 1,096 4,230 330 EQUITY METHOD INVESTMENTS 19,407 867 OTHER INVESTMENTS OTHER ASSETS 4,139 2,667 8,232 6,682 DEFERRED INCOME TAX ASSETS PROPERTY, PLANT AND EQUIPMENT – net TRADEMARKS WITH INDEFINITE LIVES 8,203 6,729 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 51 138 10,263 274 GOODWILL 9,401 OTHER INTANGIBLE ASSETS 368 TOTAL ASSETS $ 83,216 $ 87,896 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt $ 8,932 13,194 4,997 $ 8,748 13,205 3,298 Accrued income taxes 378 410 Liabilities held for sale 37 Liabilities held for sale – discontinued operations 1,722 1,496 TOTAL CURRENT LIABILITIES 29,223 27,194 31,182 8,021 2,522 LONG-TERM DEBT 25,364 7,638 1,933 OTHER LIABILITIES DEFERRED INCOME TAX LIABILITIES THE COCA-COLA COMPANY SHAREOWNERS’ EQUITY Common stock, $0.25 par value; Authorized – 11,200 shares; Issued – 7,040 and 7,040 shares, respectively Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost - 2,772 and 2,781 shares, respectively 1,760 1,760 16,520 63,234 (12,814) (51,719) 15,864 60,430 (10,305) (50,677) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 16,981 2,077 17,072 1,905 TOTAL EQUITY 19,058 18,977 TOTAL LIABILITIES AND EQUITY $ 83,216 $ 87,896
THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 2017 2016 (In millions) OPERATING ACTIVITIES $ 6,476 $ 1,283 $ 6,550 (101) Consolidated net income (Income) loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation expense 251 6,727 1,086 1,182 1,260 219 6,550 1,787 225 258 (450) (457) (38) Deferred income taxes (1,256) (628) (856) (449) Equity (income) loss – net of dividends Foreign currency adjustments Significant (gains) losses on sales of assets – net Other operating charges 281 158 1,459 1,218 189 1,146 558 647 (224) (225) Other items 682 (269) 3,464 Net change in operating assets and liabilities Net cash provided by operating activities (1,202) 7,320 6,930 8,792 INVESTING ACTIVITIES (7,789) 14,977 (1,040) 1,362 (1,347) (16,626) 17,842 (838) 1,035 (2,262) 150 Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by (used in) investing activities (17,296) 16,694 (3,809) 3,821 (1,675) 245 104 (60) (93) (2,254) (305) 6,348 (1,004) FINANCING ACTIVITIES 29,857 (28,768) 1,595 (3,682) (6,320) (91) (7,409) 27,281 (25,615) 1,434 (3,681) (6,043) 79 Issuances of debt 27,339 (30,568) 1,476 (1,912) (6,644) (243) (10,552) Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by (used in) financing activities (6,545) CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations Net cash provided by (used in) financing activities from discontinued operations 307 111 (421) (58) (38) 205 Net cash provided by (used in) discontinued operations 91 15 EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS (262) 241 CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 2,945 6,373 (2,477) 8,850 1,238 7,612 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year Less: Restricted cash and restricted cash equivalents at end of year Cash and cash equivalents at end of year 9,318 392 8,850 295 6,373 367 $ 8,926 $ 6,006 $ 8,555
Transcribed Image Text:THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 2017 2016 (In millions) OPERATING ACTIVITIES $ 6,476 $ 1,283 $ 6,550 (101) Consolidated net income (Income) loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation expense 251 6,727 1,086 1,182 1,260 219 6,550 1,787 225 258 (450) (457) (38) Deferred income taxes (1,256) (628) (856) (449) Equity (income) loss – net of dividends Foreign currency adjustments Significant (gains) losses on sales of assets – net Other operating charges 281 158 1,459 1,218 189 1,146 558 647 (224) (225) Other items 682 (269) 3,464 Net change in operating assets and liabilities Net cash provided by operating activities (1,202) 7,320 6,930 8,792 INVESTING ACTIVITIES (7,789) 14,977 (1,040) 1,362 (1,347) (16,626) 17,842 (838) 1,035 (2,262) 150 Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by (used in) investing activities (17,296) 16,694 (3,809) 3,821 (1,675) 245 104 (60) (93) (2,254) (305) 6,348 (1,004) FINANCING ACTIVITIES 29,857 (28,768) 1,595 (3,682) (6,320) (91) (7,409) 27,281 (25,615) 1,434 (3,681) (6,043) 79 Issuances of debt 27,339 (30,568) 1,476 (1,912) (6,644) (243) (10,552) Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by (used in) financing activities (6,545) CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations Net cash provided by (used in) financing activities from discontinued operations 307 111 (421) (58) (38) 205 Net cash provided by (used in) discontinued operations 91 15 EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS (262) 241 CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 2,945 6,373 (2,477) 8,850 1,238 7,612 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year Less: Restricted cash and restricted cash equivalents at end of year Cash and cash equivalents at end of year 9,318 392 8,850 295 6,373 367 $ 8,926 $ 6,006 $ 8,555
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