Annual Report Analysis The Coca Cola Company
Annual Report Analysis By: Lyndsey St. Martin Link to The Coca-Cola Company’s 2013 Annual Report: http://assets.coca-colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form-10-k.pdf The Coco-Cola Company started selling beverage products back in 1886 in the United States, the company now sells primarily sparkling beverages, but also sells a variety of other beverages such as waters, juices, teas and sports drinks. The Coca-Cola Company now owns more than 500 nonalcoholic beverages and sells products bearing the company’s trademark in more than 200 countries. Incorporated in 1919, the Coca-Cola Company has become “the world’s largest beverage company.” as stated on the 2013 Annual Report.
The dollar amounts provided in financial statements used to answer the questions below were presented in millions.
1. Who are the firm’s auditors? Do they provide a clean opinion on the financial statements?
The Coca-Cola Company’s independent auditors are Ernst & Young LLP. Yes, Ernst & Young’s opinion on the Coca-Cola’s financial statements is clean.
2. Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements?
The Coca-Cola Company had one subsequent event, on February 5, 2014 they entered into an agreement with Green Mountain Coffee Roasters, Inc., for 10% equity in the company. Under the terms of the agreement, they bought 16,684,139 shares for 1.25 billion. The shares were priced at $74.98.
I did not find any errors, irregularities, illegal acts or related-party transactions that had a material effect on the financial statements.
3. Describe the trend in total assets and total liabilities for the years presented.
Overall total assets increased from the previous year’s assets for each of the years presented. Comparing 2013 and 2012, the company’s total assets increased by 5%, the largest increase being in Short-term investments which
The dollar amounts provided in financial statements used to answer the questions below were presented in millions.
1. Who are the firm’s auditors? Do they provide a clean opinion on the financial statements?
The Coca-Cola Company’s independent auditors are Ernst & Young LLP. Yes, Ernst & Young’s opinion on the Coca-Cola’s financial statements is clean.
2. Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements?
The Coca-Cola Company had one subsequent event, on February 5, 2014 they entered into an agreement with Green Mountain Coffee Roasters, Inc., for 10% equity in the company. Under the terms of the agreement, they bought 16,684,139 shares for 1.25 billion. The shares were priced at $74.98.
I did not find any errors, irregularities, illegal acts or related-party transactions that had a material effect on the financial statements.
3. Describe the trend in total assets and total liabilities for the years presented.
Overall total assets increased from the previous year’s assets for each of the years presented. Comparing 2013 and 2012, the company’s total assets increased by 5%, the largest increase being in Short-term investments which