By looking at the 2015 annual report on form of 10-K of the Coca-Cola Company (h

Question

By looking at the 2015 annual report on form of 10-K of the Coca-Cola Company (http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/investors/2015-annual-report-on-form-10-k.pdf)

Income Statement:

1. Read the footnotes to the financial statements. What is your company's revenue recognition policy?

b. What subtotals does your company report on its income statement?

c. What amount of revenue was earned for the most recent year?

d. What is the amount of the largest expense on the income statement for the most recent year? Please briefly describe the transaction represented by the expense.

e. What is the amount of net income for the most recent year?

f. What is your company's earnings per share (basic only) for the three years reported?

Explanation / Answer

1)

We recognize revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. For our Company, this generally means that we recognize revenue when title to our products is transferred to our bottling partners, resellers or other customers. Title usually transfers upon shipment to or receipt at our customers’ locations, as determined by the specific sales terms of each transaction. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part

2)

Subtotals include

Gross profit

Operating income

Income before taxes

Consolidated net income

3)

4)

The largest expense is cost of goods sold after that it is selling general and administrative exp

5)

6)

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