Coca-Cola financial statements Essay Example | Topics and Well Written Essays - 500 words

Coca-Cola financial statements - Essay Example Coca-Cola’s largest assets are property, plant and equipment that amount to a net worth of 9,052 million dollars based on the December 2014 yearly financial reports (The Coca-Cola Company, 2015). Their second largest asset is goodwill that amounted to 12,100million dollars as at December 2014. Their total asset worth is 92,023 million dollars. Based on the 2014 financial reports, the company’s total liabilities amount to 32,374 million dollars while their total equity amounts to 30561 million dollars (The Coca-Cola Company, 2015). At the end of the year, the company’s’ cash and its equivalents amounted to 8,958 million dollars. The company’s largest expenses were on purchase of investments and payments of debts. Purchase of investments amounted to 17800 million dollars while payment of debts amounted to 36,962 million dollars. Despite having many debts and incurring a lot of money on investments, Coca-Cola realized a gross profit of 28,109,000 dolla rs. How the financial statements are linked The income statement described how assets and liabilities were used during the year. The cash flow statement explained how the company got cash and how they spend it, and it gave a figure on the company’s cash at hand Example 1: The net income calculated in the income statement ($7,098,000) is used as the first item in the cash flow statements ($7,098,000) (NASDAQ, 2015). Example 2: The retained earnings of the company amounted to 63,408,000 dollars.