The company I chose to execute my one-year study analysis on was The Coca Cola Company. I chose this company because they are a well-established company that would give me a good thought of what a big company’s one-year study might look like. Coca-Cola is the world’s largest retail merchant of non-alcoholic drinks. The company sells merchandises in over 200 states around the universe and owns over 500 trade names world-wide ( “Coca-Cola” which is deemed the world’s most valuable trade name ) . They besides sell dressed ores and sirups marketed to jobbers. retail merchants and distributers. The Coca-Cola central office are located in Atlanta. Georgia on a 35-acre commercial belongings. The company has an 870. 000 square pes complex adjacent to another 264. 000 square pes place. The physical reference is 10 Glenlake Parkway. Atlanta. Georgia. The financial twelvemonth for 2013 ended on December 31. 2013. In 2013. The Chief Executive Officer was Muhtar Kent. he joined the company in 1978 and was elected the CEO and manager of the company in December 2006. The Coca-Cola Company’s chief country of operation is North America. Although it is sold in about all states. North America accounted for 54 % of its capital outgos.
1. Who are the firm’s hearers? Do they supply a clean sentiment on the fiscal statements? Coca Cola was audited by Ernst & A ; Young. LLC. Ernst & A ; Young. LLC. ARE independent hearers that were used to measure amalgamate balance sheets and other fiscal statements for the Coca-Cola Company in for the 2013 financial twelvemonth. Ernst & A ; Young reported that the balance sheets. income statements. shareholder equity. hard currency flows and other fiscal studies accurately and reasonably reported the Coca-Cola Company’s fiscal place. In our sentiment. the fiscal statements referred to above present reasonably. in all material respects. the amalgamate fiscal place of the Coca-Cola Company and subordinates at December 31. 2013 and 2012. and the amalgamate consequences of their operations and their hard currency flows for each of the three old ages in the period ended December 31. 2013. in conformance with U. S. by and large accepted accounting rules.
2. Have at that place been any subsequent events. mistakes and abnormalities. illegal Acts of the Apostless. or related-party minutess that have a material consequence on the fiscal statements? There has been certain factors that could perchance impact the concern and fiscal conditions in future periods. Consumers. public wellness functionaries and authorities functionaries are extremely concerned about the public wellness effects of fleshiness. peculiarly among immature people. In add-on. some research workers. wellness advocators and dietetic guidelines are proposing that ingestion of sugar-sweetened drinks. including those sweetened with HFCS or other alimentary sweetenings. is a primary cause of increased fleshiness rates and are promoting consumers to cut down or extinguish ingestion of such merchandises. Increasing public concern about fleshiness ; possible new or increased revenue enhancements on sugar-sweetened drinks by authorities entities to cut down ingestion or to raise gross ; extra governmental ordinances refering the selling. labeling. packaging or sale of our sugar-sweetened drinks ; and negative promotion ensuing from existent or threatened legal actions against us or other companies in our industry associating to the selling. labeling or sale of sugar-sweetened drinks may cut down demand for or increase the cost of our sugar-sweetened drinks. which could adversely impact our profitableness.
Water scarceness and hapless quality could negatively impact the Coca-Cola system’s production costs and capacity. Water is the chief ingredient in well all of our merchandises. is critical to our fabrication processes. and is needed to bring forth the agricultural ingredients on which our concern relies. It is besides a limited resource in many parts of the universe. confronting unprecedented challenges from overuse. a turning population. increasing demand for nutrient merchandises. increasing pollution. hapless direction and the effects of clime alteration. As the demand for H2O continues to increase around the universe. and as H2O becomes scarcer and the quality of available H2O deteriorates. the Coca-Cola system may incur higher production costs or face capacity restraints that could adversely impact our profitableness or cyberspace operating grosss in the long tally.
3. Describe the tendency in entire assets and entire liabilities for the old ages presented. The balance sheet for Coca Cola includes 2 old ages which are 2012 and 2013. Harmonizing to the amalgamate balance sheet. both entire assets and entire liabilities increased from January 30. 2012 to January 29. 2013. At first glimpse of their balance sheet. Coca Cola appears to be making good. Their entire assets are big plenty to cover their entire liabilities which is what people would be looking at. but when I took a closer expression. the entire assets merely increased by $ 3881 where the entire liabilities increased by $ 3881. ( Reported in 1000000s ) The entire hard currency. hard currency equivalent. and short-run investings increased from 2012 to 2013. The entire current assets significantly inclined from 2012 to 2013. The entire assets significantly inclined from 2012 to 2013. The entire current liabilities inclined from 2012 to 2013. Long term debt. capital excess. and reinvested net incomes all inclined from 2012 to 2013. The entire equity inclined in add-on to entire liabilities and equity.
4. What are the company’s three largest assets for the most recent twelvemonth presented? The three largest assets for Coca Cola:
Cash and hard currency equivalents $ 10. 414 $ 8. 442Property. PLANT AND EQUIPMENT — net 14. 967 14. 476GOODWILL 12. 312 12. 2555. What are the company’s three largest liabilities for the most recent twelvemonth presented? The three largest liabilities for the most recent twelvemonth presented are: Reinvested net incomes 61. 660 58. 045Long-run DEBT 19. 154 14. 736Capital excess 12. 276 11. 3796. What types of stock does the company hold? How many portions are at that place outstanding for each type of stock for the most recent twelvemonth presented? Common Stock is the lone stock option that is shown on Coca Cola one-year study. As of January 29. 2013 there are 4. 385. 924. 000 outstanding stocks. 7. Does the company utilize the single-step or the multi-step income statement or a fluctuation? Coca Cola uses the multi-step income statement because it includes the gross net income sum that is stated after net grosss and cost of goods sold. Harmonizing to the Intermediate Accounting book. the multi-step is used more often by big public companies because it makes it easier to see and analyse the tendencies within the company.
8. Does the income statement contain any individually reported points in any twelvemonth presented. included discontinued operations or extraordinary points? If it does. depict the event that caused the point. There are no extraordinary points or discontinued operations included on the income statement for Coca Cola.
9. Describe the tendency in net income over the old ages presented. For the three old ages presented on statements of net incomes. there has been an addition and lessening in the net income. From 2011 to 2012 there was an addition of $ 400 and from 2012 to 2013 there was a lessening of 460. The last twelvemonth was non every bit much of an addition. but from the old ages presented in the one-year study. Coca Cola appears to be consistent with their net net incomes. If I were traveling to put in their company. I would look back a few more old ages to see if their net net incomes and worsening over clip. 10. Does the company have other comprehensive income? If yes. what is the nature of the minutess? Listed on the amalgamate balance sheet for Coca Cola is accumulated other comprehensive income. It states that this comprehensive income consists chiefly of foreign currency interlingual rendition accommodations. 11. Does the company utilize the indirect or direct method of the hard currency flow statement? The statement of hard currency flows uses the indirect method. The hard currency flow statement starts with net net incomes and depreciation disbursal is non subtracted from the hard currency flow statement but is subtracted from the statements of net incomes. 12. What is the tendency in hard currency from operations for the old ages presented? Coca Cola’s hard currency and hard currency equivalents had a big addition from January 30. 2011 to January 29. 2012.
The hard currency and hard currency equivalents increased by $ 139. and decreased by $ 26 in 2013. As per the notes subdivision. “the company considers all extremely liquid investings purchased with original adulthoods of three months or less to be hard currency equivalents. The Company’s hard currency equivalents are carried at just market value and dwell chiefly of money market financess. ” It does non province where they acquired this many money market financess in a one twelvemonth period. 13. What are the two largest points included in hard currency from puting activities? The merely two points that made Company XYZ money from puting activities are Returns from disposals of investings and returns from disposals of concerns. equity method investings and nonmarketable securities. In decision. “Our end is to utilize our Company’s assets — our trade names. fiscal strength. matchless distribution system. planetary range. and the endowment and strong committedness of our direction and associates — to go more competitory and to speed up growing in a mode that creates value for our stockholders Coca Cola seems reasonably solid because they have been around for so many old ages. ”
The world’s largest soft-drink shaper set all-time intraday highs three yearss this hebdomad. including a new record of $ 44. 87 yesterday in New York. Before this hebdomad. Coca-Cola’s last record was on July 15. 1998. when the stock reached $ 44. 47. adjusted for a subsequent split. Coca-Cola has seen steady slopes in stock over the past few decennaries with increasing dividends doing the company a strong investor’s choice that shows steady growing. Through analysis of its income statement. balance sheet. and cardinal ratios. there is ground to believe that its investing in its bottlers has caused their income to skid doing them sell their bottlers’ assets to derive a somewhat higher income. There is surely room for betterment in cost film editing and efficiency but this motion must be made in resolutely and efficaciously and in due clip without compromising growing. Overall. Coca-Cola is on the right path to farther success in the drink industry every bit long as it sufficiently adapts to the quickly altering demands of the consumers in the hereafter.
Mentions1 hypertext transfer protocol: //assets. coca-colacompany. com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form-10-k. pdf 2 hypertext transfer protocol: //www. bloomberg. com/news/2014-10-10/coca-cola-hits-record-as-investors-seek-safety. html 3 hypertext transfer protocol: //www. coach. emory. edu/scrosso/Summer % 202013/AR % 20Final % 20projects/AR % 20Final % 20projects/Frank. % 20Daniel_The % 20Coca-Cola % 20Company. pdf 4 hypertext transfer protocol: //www. coca-colacompany. com/history/ .
