February 24, 2020. Briefly answer the following questions using the information provided. Complete sentences are not required. Unless otherwise noted, the relevant information is contained in Item 8, “Financial Statements and Supplementary Data,” which begins on page 67. Also, unless otherwise noted, the questions relate to fiscal year 2019. https://investors.coca-colacompany.com/filings-reports/annual-filings-10-k
General Company Information
1. How many brands of beverages does Coke own or license? (Item 1)
2. In how many countries and territories are Coke products sold? (Item 1)
3. How many employees does Coke have? (Item 1)
4. Of the 46 risk factors Coke discusses in Item 1A, which is most significant in your opinion? You don’t need to explain why, just pick one that sounds risky.
Revenues and Expenses
5. How much revenue (i.e., net operating revenues) did Coke report for the year?
6. How much did Coke’s net operating revenue grow compared to the prior year, in dollars and as a percentage?
7. How much of this percentage growth was attributable to an increase in sales volume, as opposed to price or product mix changes, foreign currency fluctuations, or business acquisitions? (Page 47).
8. What is Coke’s gross profit margin? How much did it increase or decrease compared to 2018?
9. What are the two main types of products that Coke markets, manufactures, and sells? (Note 3)
10. Which of Coke’s product sales tend to produce higher profit margins? (Note 3)
11. Outside the United States, did Coke sell more in concentrates or finished products? (Note 3)
12. During which quarter did Coke report the highest amount of revenues? (Page 143)
13. When does Coke recognize revenue in the income statement? (Find, read, copy, then paste the sentence on page 41 that discusses when control of products transfers to customers)
14. How much did Coke report as selling, general, and administrative expenses?
15. What are the primary three expenses included in selling, general and administrative expense? (Page 50)
16. How much depreciation expense did Coke recognize in the income statement? (Note 1)
17. How to hide a billion dollars: Which line on Coke’s income statement includes depreciation expense? Note: you have to make an educated guess because Coke doesn’t explicitly tell you.
18. What is Coke’s operating income?
19. How much of Coke’s operating income was generated in Latin America? (Note 21)
20. What is Coke’s effective tax rate? Estimate it as tax expense divided by pretax income.
21. How much is Coke owed by customers for purchases already made as of year end?
22. Of the amount owed by customers, how much does Coke expect to eventually collect in cash (i.e., from customers that don’t default on their payments)?
23. Why does Coke think its risk associated with customer nonpayment is “limited”? (Note 1, page 75)
24. On average, how many days does it take for Coke to collect accounts receivable from customers? Estimate this using the days sales outstanding ratio. Use net accounts receivable amounts in the calculation, i.e., the numbers presented in the 2019 column of the balance sheet.
25. How much inventory does Coke have on hand as of fiscal year end?