Coca Cola Company



Coca Cola Company

C6-13

Q1)

Total cash and cash equivalent for 2010 = $8517

The company include all those investment and time deposits that will be matured with in three-month period after the date of purchase.

Q2)

Trade account receivable at the end of 2010 was $4430 as compare to $3758 at 2009. In addition to this company records their receivable at its net realization value, as this value is comprised of suitable allowance for predicted uncollectible receivables, and expected loss in account receivable (Stickney etal, 2009).

Q3)

Account receivable for 2010 = 35119/3090

= 11.36

Account receivable for 2009 = 30990/3090

= 10.03

Account receivable ratio for the period of 2010 is greater than 2009, because company was able to increase its sales, and were lacking in reducing the credit period of its customers, in fact the credit period increased as compare to preceding years.

C7-12

Q1)

The company uses first in and first out method to calculate the cost of inventory because, the used to calculate their inventories at a much lower cost than market. Further, the company used this method because it allows them to calculate inventory that is being purchases first or used before other inventories.

Q2)

Inventory turnover 2010 = 12693/2187

= 5.80

Inventory turnover 2010 = 11088/2187

= 5.06

The minor difference that is observed for inventory turn over for the year 2010 and 2009 is because during these periods, the company purchased more inventories and it took them a little more day to circulate the inventory

Q3)

Journal entries for recording changed in inventory transactions Ending inventory balanceBeginning inventory $2650

$ 2354Cost of good sold $ 12693

Purchases $ 4405



C9-12

Q1)

Total current liabilities for end of the year 2010 was 18508, which include account payable and accrued expense, accrued income taxes, loans and note payables, and current maturities of long term dept. the highest current liabilities was account payable with the value of $ 8859 (Stickney etal, 2009).

Q2)

The company accounts payable and accrues expenses consist of the following elements, like accrued marketing, account payables of trade activities, other accrued expenses, container deposits and others. The total value of account payables were recorded as $8859.

Q3)

The total loans and notes payable for the year 2010 was $8100, it comprises commercial paper that is issued in USA, and at the end of 2010, the company has $7535 and $6322 outstanding commercial papers. Further, at the end of 2010, the company has $5560 million of lines of credit and other Short-term credit, and among those ...