Following are comparative statements of cash flows, as reported by The Coca-Cola Company in its 2017 annual
Question:
Following are comparative statements of cash flows, as reported by The Coca-Cola Company in its 2017 annual report:
Required:
a. Briefly review the consolidated statements of cash flows, and then provide an overall evaluation of the ?big picture? during the three years presented for Coca-Cola. Have operating cash flows been sufficient to meet investing needs and to pay dividends?
b. Were there significant changes to any of the specific line-item details that you think would require further explanation or analysis?
Transcribed Image Text:
THE COCA-COLA COMPANY AND SUBSIDIARIES Consolldated Statements of Cash Flows Year Ended December 31 (In millons) 2017 2016 2015 Operating Activities (details omitted): $ 6,995 $ 8,796 $ 10,528 Net cash provided by operating activitles Investing Activities: Purchases of Investments (16,520) (15,499) (15,831) Proceeds from disposals of Investments 15,911 16,624 14,079 Acquisitions of businesses, equity method Investments, and nonmarketable securities (3,900) (838) (2,491) Proceeds from disposals of businesses, equity method Investments, and nonmarketable securitles 3,821 1,035 565 Purchases of property, plant, and equipment (1,675) (2,262) (2,553) Proceeds from disposals of property, plant, and equlpment 104 150 85 Other Investing activities... (126) (209) (40) (6,186) Net cash provided by (used In) Investing activitles... (2,285) (999) Financing Activities: Issuances of debt 29,857 27,281 40,434 Payments of debt (28,768) (25,615) (37,738) Issuances of stock 1,595 1,245 1,434 Purchases of stock for treasury (3,682) (3,681) (3,564) Dividends (6,320) (6,043) (5,741) Other financing activities (91) 79 251 (6,545) Net cash provided by (used In) financing activitles (7,409) (5,113) Cash Flows from Discontinued Operatlons: Net cash provided by (used In) operating activities of disc ed operations 111 Net cash provided by (used in) Investing activities of discontinued operations (65) Net cash provided by (used In) financing activitles of discontinued operations (38) Net cash provided by (used In) discontinued operations. 8. Effect of Exchange Rate Changes on Cash and Cash Equivalents: 242 (6) (878) Cash and Cash Equlvalents: Net Increase (decrease) during the year Balance at beginning of the year (1,649) (2,549) 1,246 8,555 7,309 8,958 $ 8,555 Balance at end of year. $ 6,006 $ 7,309
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a Net cash provided by operating activities easily exceeded net cash used in investing activities for all three years which suggests that CocaCola is generating enough cash to finance its growth in as...View the full answer
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Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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