...Christine Worth MBA515 Financial Statement Analysis Project Outline Compare & Contrast Coca-Cola vs. PepsiCo Financial Analysis Income Statement vs Cash Flow Accounts with greatest difference Evaluation of Fiscal Period Profitability Liquidity Leverage Financial Reporting Practices Methods for Accounting Coca-Cola Pepsi Company Disclosures Compare & Contrast Clarity & Completeness Critical Analysis Decision Investment Equity Investor Coca-Cola Company verses PepsiCo Critical Analysis of Investment The three financial statements required for external reports are the income statement, balance sheet, and statement of cash flows. The statement of cash flow highlights the major activities that impact cash flows, which affect the overall cash balance (Garrison, Noreen & Brewer, 2012). Equity investors utilize these financial statements for a critical analysis of the firm’s financial stability before making an investment. Based on a comparison of the income statements to the statements of cash flows for Coca-Cola and PepsiCo, the following accounts report the greatest differences between net income and cash flow from operations. Coca-Cola Company 2010 2009 2008 * Gain from Sale of Asset $(5,358) $(43) $(130) * Income of Equity Investments (671) (359) 1,128 * Change in Accounts Payable 656 319 (576) * Change in Other Working Capital (161) (510) (41) PepsiCo 2010 2009 2008 * Income...
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...Coca-Cola Company Case Study GB 518 Financial Accounting Principles and Analysis Kaplan University SUMMARY Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the business that generates revenue and move the business forward. Company Overview The Coca-Cola Company is the largest beverage company in the world that provides consumers with more than 500 sparkling and still brands of refreshing drinks. While Coca-Cola is the most valued brand in the company’s portfolio, it features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, PowerAde, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola Company is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Throughout the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola Company beverages at a rate of more...
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...Assignment Marketing Plan On (Product Coca-Cola) Prepared by Md. Mosaddek Hossen Id # 0220012 Tanima Trina Id#0220063 Sohel Mahmud Id # 0220013 Sabrina Chawdhury Id # : 0000000 Group- Leo Marketing Management Sec-1 Submitted to Mr. Rumman Hassan Lecturer School of Business Independent University, Bangladesh 25th April, 2006 25 April, 2006 Mr. Rumman Hassan Course Instructor Marketing Management School of business IUB, Dhaka-1212 Sub: Letter of transmittal Dear Sir, It’s our great pleasure to submit you this report on Market plan of Coca-cola. We have got a great experience while working on this report. We would like to leave this report to your kind consideration for any unintentional mistake that may accuser while doing this report. We are always at your service if you want to ask us any thing about this report and it will be a great pleasure to work with you again in future. Sincerely yours Md. Mosaddek Hossen Id # 0220012 Tanima Trina Id#0220063 Sohel Mahmud Id # 0220013 Sabrina Chawdhury Id # : Group- Leo Table of Contents Page number Acknowledgement --------------------------------------------------------------------- 5 Executive Summary ------------------------------------------------------------------- 6 Introduction ---------------------------------------------------------------------------- 7 Beginning of the project -------------------------------------------------------- 7 Preface -------------------------...
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...The primary purpose of this report is to identify and analyze the two dominant companies in the soft drink industry and determine the strongest performer as an investment opportunity. Coca-Cola and PepsiCo have been competing in the soft drink sector for over a century and both companies enjoy a high degree of brand consciousness globally. Coca-Cola has, until recently, outpaced its number two rival considerably, both in the U.S. and overseas. I will compare the two companies using the following criteria: (a) comparative statistics and relevant figures affecting probability, (b) key ratios, and (c) the weighted average cost of capital (WACC). Comparative Statistics: Relevant Figures Affecting Profitability For the purpose of my report, all relevant financial data on both Coca-Cola and PepsiCo was derived from the reliable Yahoo Finance and Morningstar website and the accompanying 10-k reports. Coca-Cola is the largest manufacturer and distributor of non-alcoholic beverage concentrates and syrups in the world. Additionally, the company has ownership interests in numerous bottling and canning operations. Furthermore, Coca-Cola groups its products into eight business divisions including: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling Investments, and Corporate. Finished beverage products are sold in more than 200 countries worldwide. Coca-Cola's major products are comprised of: Coca-Cola, Crush, Sprite, Fanta, Diet Coke, POWERade, Fruitopia...
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...Oral Report NAME ACC/400 DATE INSTRUCTOR Oral Report The objective of this report is to inform and explain to the CEO the result that was found in the Coca Cola and Pepsi Ratio research. Using financial statement from both Coca Cola and Pepsi I was able to determine both of the organizations, current ratio, receivable turnover, average collection period, inventory turnover, days in inventory and current cash debt coverage. The information gather came from the 2004 consolidated financial statements for the Coca Cola Company and for PepsiCo, Inc. The figures in the financial statement where in millions, formulas of each of the requirement request, were tested to conclude with the right answer. The most significant finding in the report was the inventory turnover between Coca Cola and Pepsi. Inventory turnover is the ratio of cost of goods sold by a business to its average inventory during a given accounting period. The most important recommendation is to look at the current ratio information of each organization. The current ratio is a ratio between the assets and liabilities. In this case the organization that shows more profitability is Coca Cola. Pepsi-Cola in 2004 edged out Coca-Cola in profitability. Pepsi housed a more diversified holding through additional brands such as Gatorade. Gatorade was a very popular and profitable brand for Pepsi. Coca-Cola had a higher stockholder’s equity at 15,013 shares while Pepsi was at 12,734. However, Pepsi return was higher...
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...Accounting 3230 Fall 2014 Part I: Leonard Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 20X2 and 20X3. | 20X2 | 20X3 | Projected benefit obligation, January 1 | $ 600,000 | | Plan Assets(fair value and market-related value), January 1 | 410,000 | | Pension Asset/Liability, January 1 | 190,000 CR. | | Prior Service Cost, January 1 | 160,000 | | Service cost | 40,000 | $ 59,000 | Settlement rate | 10% | 10% | Expected rate of return | 10% | 10% | Actual return on plan assets | 36,000 | 61,000 | Amortization of prior service cost | 70,000 | 50,000 | Annual Contributions | 97,000 | 81,000 | Benefits paid to retirees | 31,500 | 54,000 | Increase in projected benefit obligation due to changes in actuarial assumptions | 87,000 | 0 | Accumulated benefit obligation at December 31 | 721,800 | 789,000 | Average service life of all employees | | 20 years | Vested benefit obligation at December 31 | | 464,000 | (a) Prepare a pension worksheet presenting both years 20X2 and 20X3 and accompanying computations and amortization of the loss (20X3) using the corridor approach. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (c) For 20X3, indicate the pension amounts reported in the financial statements. Part II: The accounting records of Scotty inc show the following data for 20X2....
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...Stock Report | November 2, 2013 | NYS Symbol: KO | KO is in the S&P 500 Coca-Cola Co (The) S&P Recommendation STRONG BUY GICS Sector Consumer Staples Sub-Industry Soft Drinks Key Stock Statistics (Source S&P, Vickers, company reports) 52-Wk Range $43.43– 35.58 Trailing 12-Month EPS $1.93 Trailing 12-Month P/E 20.5 $10K Invested 5 Yrs Ago $20,900 Price Performance 30-Week Mov. Avg. 12-Mo. Target Price 45 40 35 30 55555 Price $39.61 (as of Nov 1, 2013) 12-Mo. Target Price $44.00 Investment Style Large-Cap Growth Summary The world's largest soft drink company, KO also has a sizable fruit juice business. S&P Oper. EPS 2013E S&P Oper. EPS 2014E P/E on S&P Oper. EPS 2013E Common Shares Outstg. (M) 2.09 2.27 19.0 4,433.2 Market Capitalization(B) Yield (%) Dividend Rate/Share Institutional Ownership (%) $175.597 2.83 $1.12 61 Beta S&P 3-Yr. Proj. EPS CAGR(%) 0.52 9 Qualitative Risk Assessment 10-Week Mov. Avg. Relative Strength GAAP Earnings vs. Previous Year Up Down No Change Volume Above Avg. Below Avg. STARS LOW MEDIUM HIGH Our risk assessment for Coca-Cola Company reflects the relatively stable nature of the company's end markets, its dominant market share positions around the world, and our view of its strong balance sheet and cash flow. 2-for-1 25 Quantitative Evaluations S&P Quality Ranking D C BB B+ AA A+ A+ Vol. Mil. 120 80 40 0 5 1 J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S...
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...Assignment #1: Coca-Cola Company Financial Results Analysis: Q3 2012 ACC499/Accounting Capstone 10/21/12 Coca-Cola Company is a beverage company headquartered in the United States with significant international operations. Operating in over 200 countries worldwide with a product offering of over 500 different products, Coca-Cola Company has come a long way from a small beginning in 1886 (Coca-Cola, History, 2012). Long considered a strong corporate entity by investors and analysts, Coca-Cola recently released 2012 Q3 financial results and business targets on October 16, 2012 as discussed below. North American Market Volume Results North America is part of the Coca-Cola Americas division which also includes Latin American operations. The United States was the starting market for Coca-Cola Company however the North American sector also includes Canada and Mexico. While North America continues to be a significant factor in all financial transactions and considerations, recent concerns with obesity in the United States has caused sales issues for Coca-Cola Company and is a continuing issue the company needs to address. For this reason as well as general market saturation, North America, while strong, continues to show small to moderate gains in market volume. For Q3 2012, North American operations presented an overall growth of 2%. This metric is the net result of no volume increase for the sparkling (carbonated) beverage section against...
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...effect our partaking in a company with a bad outlook from the public? - Will global competition overtake the Coca-Cola Company as the top power in their market? The research that has been gathered is from secondary sources that are mainly from creditable online sources. Charts and graphs will also be used to visually show information on the Coca-Cola Company. A strength, weakness, opportunity, and threat analysis will help determine if Coca-Cola’s stock is a sturdy investment for a ten-year period. The results will include potential growth, stamina as a company, global competition, and statements of earnings from the past. We hope this analytical report will help you determine your decision on whether you should invest in the Coca-Cola Companies stock for a ten-year period. My company is confident that we have done the necessary research and utmost analysis needed to help the confidence of your final verdict. Sincerely, Patrick McDonald Owner of Freedom Energy Freedom Energy Company 1206 Mulholland Drive Malibu, California 91301 TABLE OF CONTEXTS EXECUTIVE SUMMARY iv INTRODUCTION 1 • Previous • Next [pic] • Add to Library (0) • Download • Print • Report this Essay • Facebook • Twitter • Google+ • Send • RATE THIS DOCUMENT • 4.5 • 1 • 2 • 3 • 4 • 5 DOCUMENT DETAILS • Views: 7 • Words: 2712 RELATED ESSAYS Coca-Cola Swot Analysis .....
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... International Finance Coca Cola (CCE) has a huge footprint across the world. They are located in over 200 countries. With a footprint of that size it is vital for CCE to work with an investment bank. A discussion of the global banking process and how it has assisted CCE, how regulatory bodies affect financial decisions, and evaluate contemporary issues in international financial management. Global Investment Banking Investment banks are institutions that support companies, for instance, Coca Cola (CCE) in many different ways. First, they assist CCE in raising capital. Second, they offer advice on major transactions including mergers and financial restructuring. Finally, they engage in trading and market making activities for CCE (Gitman, 2014). Coca Cola is sold in over 200 countries. In fact there are only 2 countries in which Coca Cola is not sold, Cuba and North Korea. Both of these countries are under long-term US trade embargoes. However, the rest of the world is able to sell Coca Cola without any issues. In the last six months Coca Cola has acquired SABMiller, Appletiser brands and 19 non-Alcoholic ready to drink brands in Africa and Latin America (Bloomberg, 2014). The acquisition cost CCE $260, but gives them a bigger presence in Africa and Latin America. An acquisition of this nature is done with the help of an investment bank who in most cases will help with the financing of the purchase of the new company. In 2014 Coca Cola also added Gold Peak tea...
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...REPORT ON PRODCEDURE OF COMPANY’S MOVE TOWARDS GLOBALIZATION Prepared for The Coca-Cola Company Atlanta, Georgia Prepared by Hardik Joshi Associate Manager Research Committee The Coca-Cola Company November 15, 2012 i Coca-Cola Company Phone: (201) 443-9920 1734 Atlanta, Fax: (201) 442-2310 GA 30301 Web: thecoca-colacompany.com Coca-Cola Company Phone: (201) 443-9920 1734 Atlanta, Fax: (201) 442-2310 GA 30301 Web: thecoca-colacompany.com ______________________________________________________________________________ November 15, 2012 The Coca-Cola Company Atlanta, GA 30301 Dear International Committee Member, The attached is the report, requested by the Coca-Cola globalization committee on October 1, 2012, describes the analysis and procedure to be taken on setting up the new business in the overseas market of India. We believe that analyzed data and collected information of this report will be useful in evaluating and setting the business...
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...Diligence Report The Coca-Cola Company AC 600 Professor: John Kocikowski Keller Graduate School of Management 10/30/2011 Table of Contents Industry Overview 3 Corporate Overview 5 Organization and General Corporate Issues 6 Treasury 8 References 14 Executive Summary The diversity at the Coca-Cola Company is evident with their presence in more than 200 counties. They feel that they are empowered within their business structure as well as the communities they serve because of their differences. Their attribute their success to their consistent values. They understand that their future growth is dependent upon their ability to develop a worldwide team that is rich in its diversity of people, cultures and ideas. Knowing that diversity is not limited to the internal structure of an organization, Coca-Cola has used this same approach regarding their suppliers. Through their supplier diversity program they are building relationships with minority and women owned businesses by giving them equal access to procurement opportunities. Coca-Cola plays a major player in its industry, not only in the U.S, but also all over the globe. Coke is single handedly the most popular soft drink anywhere, beating out its competition, Pepsi Co. Overseas, Coke has established its empire from South America to Africa to all of Asia and Europe. Coke is the world's top soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands (Coca-Cola, Diet Coke...
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...The Coca-Cola Company July 24, 2011 CONTENTS Abstract……………………………………………………………………………………………3 Coca-Cola: An Introduction.……………………………………………………………………....4 Financial Analysis………………..……………………………………………………………..…6 Competition Analysis: Pepsi………………………………………………………………………9 Recommendations………………………………………………………………………………..13 Conclusion…………………………………………………………………………………….…15 References………………………………………………………………………………………..16 Abstract Many international corporations began as small domestic ventures. As businesses grew, corporations saw the many possibilities brought on by expanding operations. Companies began to expand by opening franchises in various cities, yet they knew there was more potential for success if they were to expand their operations even further. Thousands of companies, such as Coca-Cola, chose cities internationally to gain more revenue. The purpose of a corporation is to maximize profits for all shareholders involved. Opening firms abroad allowed Coca-Cola to gain worldwide recognition, which gave them a competitive advantage over other soft drink makers. Now, Cola-Cola is not only recognized, but it is one of the most consumed soft drinks both within the United States and in cities across the globe. Coca-Cola took a huge risk in expanding their operations. However, their success proves that multinational corporations need to choose the right market to venture into and choose marketing techniques that appeal to their consumers. Coca-Cola: An Introduction In 1866...
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...| 3% | 0.03% | Interest expenses | 733 | 355 | 438 | 106% | 67% | Source: coca cola annual report 2010, 2009 and 2008 * As we can see from the above table that the net revenues (sales) shows an increased in 2010 as compared to 2009 and 2008 with 13% and 10% respectively. The sales were high in 2008 but deteriorate in 2009. The percentage change in net operating revenue due to increase or decrease in concentrates sale volume for our geographic operating segments, while for bottling investment operating segment, the percentage change occurs due to increase or decrease in unit case volume for bottling investment after the impact of structural change. Source: coca cola annual report 2010. * As we can see from the above chart that out of 13% of percentage change in net operating revenue in 2010 , 5% increase due to increase in concentrate sale volume which occurs due to shipments and impact from certain joint venture in which the company possessing an equity. While the impact of geographic mix on net revenue is 1% due to growth of the coca cola in emerging and developing market, but it is unfavourable as the net revenue per unit sold is less in in developing market as compared to developed market. The currency fluctuation increased the net revenue by 2% which was primarily occurs due to weaker U.S. dollar compared to other foreign currencies. * According to the coca cola annual report 2010, the increased in interest expenses of $378 million or by 106% in 2010 was...
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...Part Seven Desiree’ Pressley September 12, 2015 MBA620: Accounting for Decision Makers Summary of the major capital investments made by PepsiCo and The Coca Cola Company In 2014, purchases of investments for The Coca Cola Company were $17,800 million and proceeds from disposals of investments were $12,986 million. This activity resulted in a net cash outflow of $4,814 million during 2014. The purchases during the year ended December 31, 2014 include The Coca Cola Company investment in Keurig, partially offset by the net purchases and proceeds of our short-term investments, that were made as part of the Company’s overall cash management strategy. In 2014, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $389 million, which primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador. None of the Company’s other acquisitions or investments were individually significant. (The Coca Cola Company, 2015) The Coca Cola Company purchases of property, plant and equipment net of disposals for the years ended December 31, 2014 is 2,406 million. In 2014, other investing activities were primarily related to loans to Fairlife, LLC, a value-added dairy joint venture, as well as local investments in Argentina. (The Coca Cola Company, 2015) To meet this growing demand, PepsiCo plans to continue to grow their portfolio of more nutritious products as well as to reduce added sugar, sodium and...
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