Coca Cola Analysis Essay

4077 Words Nov 25th, 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
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The capital surplus (additional paid-in capital) was due to increase in stock issued related to compensation, decrease to tax benefit from employees’ stock option, and increase stock-based compensation resulting in an amount of $8,537. The retained earnings stated had a beginning balance of $38,513 from 2008, with the addition of income made in 2009 at $6,824. During the year they declared $.41 dividends to the shareholders each quarter giving $3800 declared dividends at year-end. As discussed in class there are reasons why companies would not pay dividends equal to their legally available retained earnings. Some of the reasons we stated were maintaining agreements with creditors, to meet state corporation requirements, to retain assets that would be paid out as dividends to finance growth, to smooth out dividend payments from year to year, or to build a cushion against possible losses. With Coca Cola having a loss in 2008 due to carrying value it would be important for them to follow the reason to have a cushion incase another loss needs to be recorded in future periods. In chapter 16 in regards to 15, we have determined that the basic net income per share was $2.95 and diluted net income per share was $2.93 in 2009. We can see that this was calculated through the given consolidated net income and net income attributable to shareowners. As discussed in class the basic net income is calculated by net income per share divided by

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