Analysis of Coca-Cola Company

The Company Analysis Final Paper
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How do you know if your business is doing well? If you tell your friends about something, and they tell their friends, that has called word of mouth. How much do you spend on advertising? How does it work? Are you on the NYSE or NASDAQ? Are you new? Using these methods, you can create different photos and give yourself many options. In order to increase a company's success, financial information is crucial. Under GAAP, companies have to file annual financial statements, and there is no shortage of ways to look at these financial statements besides at face value. The International Narcotics Control Board (2019) describes some methods for analyzing manufacturing companies, including cash flow statements, cost of goods sold, profit and loss statements, cost capacity analysis, horizontal and vertical analysis, and various ratios. The ease with which one can determine whether the Coca-Cola Company is thriving or floundering is finally brought into focus here.
CASHFLOW STATEMENT
Cash flow statements are used by businesses to report their cash inflows and outflows over a specific time frame (Klammer, 2018). Financial institutions use cash flow statements to forecast their future cash flow, assess the wisdom of management choices, and determine how soon they can pay off their loans and other obligations (Klammer, 2018). Cash flows and their matching cash outflows are detailed in a statement of cash flows, which is part of financial reporting. Cash flows from operating, financing, and investment activities are all included here. If relevant, please see the cash flow statement for July and August below.
Statement of Cash Flows




July-August

Notes

income



Net Income

47,000.00


Add: Adjustments



Retained earning

40,000.00








Add: Non Cash and Non-operating Expense



Depreciation

35,000.00


Less: Non-operating Income

-





Working capital changes:


Workings

Addition in AR

10,000.00

($75000-$85000)

Rise in stock

(20,000.00)

($100000-$80000)

Rise in Trade payables

12,000.00

($32000-$20000)

Rise in accrued bills

71,000.00

($86000-$15000)




Net cash from operating activities

195,000.00





Cash flows from investing activities



Purchase of assets

(310,000.00)





Net cash used in investing activities

(310,000.00)





Cash flows from financing activities



Issuance of Notes Payable

90,000.00


Issuance of Common Stock

120,000.00


Purchase of Treasury Stock

(20,000.00)





Net cash used in financing activities

190,000.00





Net increase in cash and cash equivalents

75,000.00





Cash and cash equivalents at the beginning of the period

20,000.00





Cash and cash equivalents at the end of the period

95,000.00

95000

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Manufacturing Costs
A retailer's cost of goods sold may be determined by totaling the sums spent on sourcing and stocking things for resale. Manufacturing businesses use a Schedule of Cost of Goods Manufactured tool for this exact reason (Blokdyk, 2020). It includes direct materials purchased and consumed, as well as overhead costs, and it all kicks off with the first inventory of Work-in-Progress (WIP) products.
Cost of goods manufactured
Direct material Opening inventory$70,100Add: Purchase of direct materials $351,200Total$421,300Less: closing inventory(65,800)Direct materials355,500Direct labor173,000Indirect manufacturing costs:Indirect Manufacturing Labor34,000Indirect Material20,000Depreciation20,800Plant utilities and insurance20,300Total Indirect Manufacturing Cost95,100Manufacturing cost for the period623,600Add: Beginning Inventory - Work in process80,700Indirect Manufacturing Labor704,300Indirect Material(27,400)Cost of goods manufactured676,900





















Income statement
Sales Revenue104,000Less: Cost of Goods SoldPrice of Goods Manufactured661,500Add: Beginning inventory - Finished Goods1000Cost of goods available662,500Less: Ending inventory - Finished goods(61,7000Cost of Goods Sold(600,800)Gross Profit43,200Less: Operating Expense...