Essay on Coca Cola Analysis (Accounting)

4096 Words Nov 29th, 2012 17 Pages
Acct 3512 Coca-Cola Analysis 8/16/2012

The Coca Cola Company is the world’s leading owner and marketer of nonalcoholic beverage brands. In order to achieve long-term sustainable growth they look at their brands, financial strength, unrivaled distribution system, global reach, and a strong commitment by management and associates worldwide. The company focuses on inspiring their employees, satisfying customer desires, nurturing partners, making a global difference, maximizing returns to shareowners, and managing for overall effectiveness. The financial statement that the Coca Cola Company provides shows their strong leadership by the data they present. By discussions held in class it allows us to analyze the following
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The calculation for dilutive earnings per share adds in the 15 exercised shares giving us an average shares outstanding of 2,329. In all, the dilutive earnings per share is calculated by the $6,824 net income divided by the 2,314 average shares outstanding plus 15 dilutive securities giving us $2.93 per share.
The Coca Cola statement had not shown any conversions in preferred stock since it was not recognized and no convertible bonds were recognized so no conversions were accounted for. In regards to chapter 16, if the company decided to issue securities they could obtain warrants making the security more attractive. One of the securities that did make the company more attractive would be the marketable securities of $62. The reason that Coca Cola would decide to obtain marketable securities would be for the following reasons: higher rate of return, convert into cash because of investment liquidity, or easy decision making for buying or selling. The Coca Cola shows that the marketable security as a short-term investment making the company more attractive for 2009. We have determined that a warrant in stock compensation plans were given in this current period. Some reasons that compensation programs are effective which were discussed through class were to create company performance, motive employees to high levels, help retain executives,

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