Coca-Cola :: essays research papers

Coca-Cola Company AnalysisThe Coca-Cola company was founded in 1886 by John Pemberton, a Civil War veteran and Atlanta pharmacist. He was stimulate by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs Pharmacy. There he added carbonate water and let several customers sample the new concoction. Jacobs Pharmacy put it on sale for five cents a glass and named it Coca-Cola. This inspired curiosity has directly grown to be the worlds leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. In 1906 Coca-Cola opened bottling plants in Canada, Cuba, and Panama. Today they produce nearly cd brands in over 200 countries. More than 70% of their income comes from outside the U.S. (1). This paper will focus on an analysis of operations of the statement of cash advert reports and a vertical and horizontal analysis of the consolidated balance sheets. Also an analysis of the global financial c ondition of the Coca-Cola Company and the value of goodwill and former(a) intangible assets will be discussed. The statement of cash flows reports a firms major cash inflows and outflows for a period. This statement provides useful information close to a companys ability to generate cash from operations, maintain and expand its operate capacity, meeting its financial obligations, and pay dividends. There are trey types of activities to look at in this statement, which are cash flows from operating activities, investing activities, and financial activities (3, 2005). When analyzing Coca-Colas statement of cash flow, the first thing to note is a steady increase in operating activities within the past few years. These proceedings affect the net income. From 2001 to 2003 the cash from net income increased from $4.1 million to $5.5 million. The operating activities is often the most important cash flow of a business because it shows the cash from revenue compared to the payments made for expenses (2). The cash flows from investing activities are cash flows from transactions that affect the investments in non-current assets. Some of these include investments in bottling companies purchases of property, plant and equipment and purchases of investments and assets. For the most part, these figures have remained fairly stable. From 2001 to 2003 it went from $1.1 million to $9.3 million, showing a slight decline (2). The demise part of this report is the cash flow from financing activities.