Exam 1 Part 2 Part A: (Worth 48 pts, 3 pts each) Use the financial statements for The Coca-Cola Company to calculate the following financial ratios using the ratios on my handout (not from the book) and then in Part B answer the following question. Please show your work so partial credit can be earned. The Coca-Cola Companies 2015 – Ratio Calculations
Liquidity Ratios
Current Ratio:______________
Acid-Test Ratio (Quick Ratio):______________
Accounts Receivable Turnover:______________
Accounts Receivable Turnover in Days:______________
Inventory Turnover:______________
Days Inventory Held:______________
Accounts Payable Turnover :______________
Accounts Payable Turnover in Days:______________
Operating Cycle:______________
Profitability Ratios
Return on Assets:______________
Return on Total Equity:______________
Asset Turnover:______________
Gross Profit Margin:______________
Profit Margin:______________
Long-Term Debt Ratios
Debt Ratio:______________
Debt to Equity Ratio:______________

Part B: (7 Points) Using the relevant ratios from above and the comparative ratios from PepsiCo (that are provided), discuss the main difference in the overall profitability/performance strategy between Coca-Cola and PepsiCo?

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A COCA-COLA COMPANY CONSOLIDATED BALANCE SHEETS- USD ($) $ in Millions 1 2 CURRENT ASSETS 3 Cash and cash equivalents 4 Short-term investments 5 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 6 Marketable securities 7 Trade net accounts receivable (less allowances of $352 and $331, 8 Inventories 9 Prepaid expenses and other assets 10 Assets held for sale 11 TOTAL CURRENT ASSETS 12 EQUITY METHOD INVESTMENTS 13 OTHER INVESTMENTS (available-for-sale) 14 OTHER ASSETS 15 PROPERTY, PLANT AND EQUIPMENT - net 16 TRADEMARKS WITH INDEFINITE LIVES 17 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 18 GOODWILL 19 OTHER INTANGIBLE ASSETS 20 TOTAL ASSETS 21 CURRENT LIABILITIES 22 Accounts payable and accrued expenses 23 Loans and notes payable 24 Current maturities of long-term debt 25 Accrued income taxes 26 Liabilities held for sale 27 TOTAL CURRENT LIABILITIES 28 LONG-TERM DEBT 29 OTHER LIABILITIES 30 DEFERRED INCOME TAXES 31 Total LIABILITIES 32 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized - 11,200 shares; Issued 33 7,040 and 7,040 shares, respectively 34 Capital surplus 35 Reinvested earnings 36 Accumulated other comprehensive income (loss) 37 Treasury stock, at cost-2,716 and 2,674 shares, respectively 38 EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 39 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 40 TOTAL EQUITY (use this number for total equity) 41 TOTAL LIABILITIES AND EQUITY 42 $ is es ese es es $ $ sssssssssssssssss $ Dec. 31, 2015 $ $ $ $ $ $ $ $ $ $ sssssssisisis $ $ $ $ $ $ $ $ $ $ $ SSSSS $ $ $ $ SS $ B $ 7,309 $ 8,322 $ 15,631 $ 4,269 $ 3,941 $ 2,902 $ 2,752 $ 3,900 $ 33,395 $ 12,318 $ 3,470 $ 4,207 $ 12,571 $ 5,989 $ 6,000 $ 11,289 854 $ 90,093 $ 9,660 $ $ 2,677 $ 331 $ 1,133 $ 26,930 $ 28,407 $ 4,301 $ 4,691 $ 64,329 $ 13,129 1,760 $ 14,016 65,018 $ (10,174) $ (45,066) $ sssssssssss 25,554 $ 210 25,764 $ 90,093 $ C Dec. 31, 2014 8,958 9,052 18,010 3,665 4,466 3,100 3,066 679 32,986 9,947 3,678 4,407 14,633 6,533 6,689 12,100 1,050 92,023 9,234 19,130 3,552 400 58 32,374 19,063 4,389 5,636 61,462 1,760 13,154 63,408 (5,777) (42,225) 30,320 241 30,561 92,023 A COCA-COLA COMPANY CONSOLIDATED BALANCE SHEETS- USD ($) $ in Millions 1 2 CURRENT ASSETS 3 Cash and cash equivalents 4 Short-term investments 5 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 6 Marketable securities 7 Trade net accounts receivable (less allowances of $352 and $331, 8 Inventories 9 Prepaid expenses and other assets 10 Assets held for sale 11 TOTAL CURRENT ASSETS 12 EQUITY METHOD INVESTMENTS 13 OTHER INVESTMENTS (available-for-sale) 14 OTHER ASSETS 15 PROPERTY, PLANT AND EQUIPMENT - net 16 TRADEMARKS WITH INDEFINITE LIVES 17 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 18 GOODWILL 19 OTHER INTANGIBLE ASSETS 20 TOTAL ASSETS 21 CURRENT LIABILITIES 22 Accounts payable and accrued expenses 23 Loans and notes payable 24 Current maturities of long-term debt 25 Accrued income taxes 26 Liabilities held for sale 27 TOTAL CURRENT LIABILITIES 28 LONG-TERM DEBT 29 OTHER LIABILITIES 30 DEFERRED INCOME TAXES 31 Total LIABILITIES 32 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized - 11,200 shares; Issued 33 7,040 and 7,040 shares, respectively 34 Capital surplus 35 Reinvested earnings 36 Accumulated other comprehensive income (loss) 37 Treasury stock, at cost-2,716 and 2,674 shares, respectively 38 EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 39 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 40 TOTAL EQUITY (use this number for total equity) 41 TOTAL LIABILITIES AND EQUITY 42 $ is es ese es es $ $ sssssssssssssssss $ Dec. 31, 2015 $ $ $ $ $ $ $ $ $ $ sssssssisisis $ $ $ $ $ $ $ $ $ $ $ SSSSS $ $ $ $ SS $ B $ 7,309 $ 8,322 $ 15,631 $ 4,269 $ 3,941 $ 2,902 $ 2,752 $ 3,900 $ 33,395 $ 12,318 $ 3,470 $ 4,207 $ 12,571 $ 5,989 $ 6,000 $ 11,289 854 $ 90,093 $ 9,660 $ $ 2,677 $ 331 $ 1,133 $ 26,930 $ 28,407 $ 4,301 $ 4,691 $ 64,329 $ 13,129 1,760 $ 14,016 65,018 $ (10,174) $ (45,066) $ sssssssssss 25,554 $ 210 25,764 $ 90,093 $ C Dec. 31, 2014 8,958 9,052 18,010 3,665 4,466 3,100 3,066 679 32,986 9,947 3,678 4,407 14,633 6,533 6,689 12,100 1,050 92,023 9,234 19,130 3,552 400 58 32,374 19,063 4,389 5,636 61,462 1,760 13,154 63,408 (5,777) (42,225) 30,320 241 30,561 92,023

Answer rating: 100% (QA)

Solution Calculation of ratios for Cocacola company for the Year ... View the full answer