By looking at the 2015 annual report on form of 10-K of the Coca-Cola Company (h
ID: 2483886 • Letter: B
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)
Balance Sheet:
a. Using the 10-K, show that the fundamental accounting equation, Assets = Liabilities + Stockholders' Equity, is true for your company at the end of the most recent year-end.
A _________________= L ____________________+ S.E. ___________________
b. What was your company's largest asset (net) at the end of the most recent year?
c. List the types of assets and liabilities your company has.
d. Describe in general terms what prepaid expenses are. Did your company report any prepaid expenses and other current assets account at the end of the most recent year? Where did you find this information?
e. Read the notes to financial statements. What method does your company use to determine the cost of its inventory?
f. Read the notes to financial statements. What method of depreciation does your company use?
g. What was the original cost of the property, plant and equipment held by your company at the end of the most recent year? What was the accumulated depreciation and amortization at the end of the most recent reporting year?
h. What is the amount of long-term liabilities at the end of the most recent reporting year?
i. List the accounts and amounts of your company's stockholders' equity.
Explanation / Answer
a. Using the 10-K, show that the fundamental accounting equation, Assets = Liabilities + Stockholders' Equity, is true for your company at the end of the most recent year-end.
A _____90,093____________= L ______64,329______________+ S.E. ______25,764_____________
b. What was your company's largest asset (net) at the end of the most recent year?
Largest Net Asset = Net Property , Plant & Equipment =$12,571 Million
c. List the types of assets and liabilities your company has.
Assets :
Current Asssts:
Cash & Cash Equivalents
Marketable securities
Net Trade Accounts Receivable
Inventories
Prepaid Expenses
Assets held For sale
Non Current Assets
EQUITY METHOD INVESTMENTS
OTHER INVESTMENTS
OTHER ASSETS
Net Property , Plant & Equipment
TRADEMARKS WITH INDEFINITE LIVES
BOTTLERS’ FRANCHISE RIGHTS WITH INDEFINITE LIVES
Good will
Other Intangible Assets
Liabilities
Current Laibilities
Accounts payable and accrued expenses
Loans and notes payable
Current maturities of long-term debt
Accrued income taxes
Liabilities held for sale
LONG-TERM DEBT
OTHER LIABILITIES
DEFERRED INCOME TAXES
d. Describe in general terms what prepaid expenses are. Did your company report any prepaid expenses and other current assets account
at the end of the most recent year? Where did you find this information?
Prepaid expenses are the advance paid for expenses that cover a duration that exceeds the current accounting period. The Prepaid expense head under current assets in Balance sheet show the Prepaid expense for 2015 of $2,752 Million.
e. Read the notes to financial statements. What method does your company use to determine the cost of its inventory?
Note 4 states that the cost of inventory is determined by average cost or FIFO method.
f. Read the notes to financial statements. What method of depreciation does your company use?
Straight Line method is used for depreciation.
g. What was the original cost of the property, plant and equipment held by your company at the end of the most recent year? What was the accumulated depreciation and amortization at the end of the most recent reporting year?
Note 7 states the PPE original cost at the end of 2015= $22,354 million
Accumulated depreciation at the end of 2015=$9783 million
Accumulated depreciation at the end of 2015 =$715 million
h. What is the amount of long-term liabilities at the end of the most recent reporting year?
Long term liabilities at the end of 2015 are :
LONG-TERM DEBT $28,407 Million
OTHER LIABILITIES $4,301 Million
DEFERRED INCOME TAXES $4,691 Million
i. List the accounts and amounts of your company's stockholders' equity.
Stock Holders’ Equity
Common Stock $1760 million
Capital Surplus $ 14016 Million
Reinvested Earning $ 65018 Million
Accumulated other comprehensine income (loss)$-45066 Million
Total Shareholders’ Equity =$25554 million
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