Question

a retailer or manufacturer. Inform your professor Choose mpany to research that is either of your choice as per his/her instructions or the latest annual report or 10-K for your company an answers into this document, save it as "Research-Y professor in hard copy or upload. Grading is based on 20 points, but you ca amount and use the same allocation. Using answer the following questions. Type 1. Insert the link to the annual report or 10-K you used: (1) Financial Reporting. What are main ideas here? 2. Locate Management's Responsibility for Who are the people that signed this statement and their positions? (2) Find the Auditor's Report. It is called the "Report of Independent Registered Public Accounting Firm." a. Which firm audits the company? (1) b. Did the company receive an unqualified (clean) audit report? Which wording in the report indicates this? (2) 3. Find the Notes to Consolidated Financial Statements a. Which note is the summary of significant accounting policies? (1) b. What is the name of one other note? (1) 4. Look at the Income Statement. What is it called? 5. a. Is it single-step or multiple-step? How do you know? (1) b. How many years are presented? (1) c. What percentage of the company's income was paid in dividends? Show your calculation. (1) Look at the Balance Sheet. What is it called? a. What asset classifications does the company have? (1) b. Does the company have Accumulated Other Comprehen and how much? (2) c. What kinds of stock has the company issued? (1) d. Write the company's accounting equation. (1) 6. sive Gains or Losses? Which Look at the Statement of Cash Flows 7. How do you know? (2) Does the company use direct or indirect metho How much was depreciation amortization income statement? Why or why not? (2) a. b. nd amortization? Can you tie this number into the

Answer 1

A1 - Link: https://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2019/annual-shareholders-meeting/2018-Annual-Report-on-Form-10-K.pdf

A2

The main idea of this section is to help readers to understand the Company's operations and present business environment. They have explained basically how to read their report. They have briefly explained their business, accounting policies and estimates, operational review, Liquidity, capital resources and financial position.

The said document is signed by:

• Chief Executive Officer and Director
• Executive Vice President and Chief Financial Officer
• Vice President and Controller
• Chief Accounting Officer
• Attorney in fact

A3

a. Ernst and Young is the Auditor

b. They company has received unqualified report. These are the wordings from report which justifies it

"In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2018 and 2017"

A4

a. Note 1 is the summary of significant accounting policies

b. Name of other note Note 2 - ACQUISITIONS AND DIVESTITURES

A5

a. It is a multi-step Income statement. In single step only Net Income is shown directly whereas in multi step multiple items as in the Gross Profit, Operating Income, Net Income etc are shown

b. Total 3 years are presented. Current and Past two years

c. For current year = Dividend Paid / Total Net Profit = $6644 millions / $6434 millions = 103.26%

A6

a. Asset Classifications

• Total Cash, Cash equivalents and Short term Investments
• Current Assets
• Other Assets - Which Includes provisions, fixed assets, intangible assets etc.

b. Yes, the company has accumulated other comprehensive losses. They are in place due to:

• Recognized prior service cost
• Recognized net actuarial gain
• Recognized loss in actuarial due to impact of curtailments
• Impact of divestitures
• Foreign currency translation gain
• Net Impact of such transactions is gain of $ 9 million

c. Common Stock and Treasury Stock

d. Assets = Total Liability + Shareholder's Equity
$83216 = $64158 + $19058 (all in millions)

A7

a. The company is using the indirect method as the cash from operating activity calculation starts from the derived Net Operating Income

b. Total depreciation and amortization was $1086 million. There are not traces of it available in the income statement, Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period.