Financial Reporting of Coca-Cola Company

Topics: Balance sheet, Generally Accepted Accounting Principles, Asset Pages: 1 (326 words) Published: April 29, 2013
Financial Reporting of the Coca Cola Company
November 27, 2012

Financial Reporting of the Coca Cola Company
When looking at a company’s financial statements, such as the Coca Cola Company, one piece of important information that should not be overlooked is the total current assets. Kimmel, Weygandt, and Kieso describe current assets as “assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer” (2009). The total current assets for the Coca Cola Company include the following accounts: cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, and prepaid expenses and other assets. These accounts for the Coca Cola Company at the end of the previous annual reporting period add up to the current assets of 21,579,000,000 which is less than this year’s total current assets. Out of the information which has been discussed in this paper there are several items that are important to investors and employees. The first is to compare the trends of past to present years. Whether you are interested in seeking employment with the Coca Cola Company or interested in investing looking at the financial trends are important. The Cash Flows Statement is a great place to start by being able to look at the last three years of how the company spent their income. On the balance sheet one can look at the past two years and see if the assets are going in an upward direction. Stockholders and potential investors would definitely be interested in the liabilities and equity which can also be found on the balance sheet. The information provided in these financial reports can help investors and employees alike make the educated decisions needed to help benefit them in the future.

Kimmel, P., Weygandt, J., & Kieso, D. (2009). Financial Accounting: Tools for business decision making (5th ed.). Hoboken, NJ: John Wiley and Sons, Inc.
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