Coca-Cola lists significant equity method investments on its balance sheet. Visit Coca-Cola’s web site and obtain the 2009 annual report. Review Coke’s 2009 annual report and answer the following questions:

1. What are Coke’s major equity method investments? Prepare a brief summary.
2. What amount of income does Coke report on these investments, and how significant are those amounts to Coke’s overall profitability?
3. Compare and summarize reported income amounts between 2008 and 2009. Can you account for the change?
4. What type of intercompany transactions does Coke engage in with its equity method affiliates?You may focus on transactions with the largest equity affiliate—Coca-Cola Enterprises, Inc.
5. Refer to Note 4. Can you explain how Coke recognizes gains and losses when its equity method affiliates sell shares of common stock to the public?