Problem Set #1
Overview of the Annual Report and Form 10K
And The Balance sheet – Pepsi & Coke
The following instructions apply to all problem sets and to all individual assignments.
Respond to the following questions. In your responses refer to the page numbers or footnote numbers in Coca Cola’s 2012 Annual Review and 201210-K where the information used in located. Except where the question only asks for a presentation of calculations (such as the common sized balance sheet) your responses should be in sentences and paragraphs. I should be able to understand your answer and see what the numerical support is without looking at your tables. For all problem sets, please show tables and calculations with each answer (unsupported answers will be marked wrong), not in separate tables. I should be able to look at your tables or calculations and see what the answer should be without actually reading it. And I should be able to read and understand your interpretation of a table without having to look at it. Clearly show and label any and all calculations. Your output should look professional.
1. Corporate Message: What does Coca Cola’s 2012 Annual Review tell you about the message the company wants to convey to its readers? Point out examples to support your discussion.
2. Describe the three types of Coca Cola’s bottling relationships. Name the significant companies that are accounted for by the equity method. Does Coca Cola have a controlling interest in these companies? Explain and demonstrate why or why not? What would the company’s balance sheet look like if Coke were to account for its publicly traded equity method investments at fair value rather than using the equity method?
3. Except for Property, plant, and equipment, what was Coca Cola’s largest single asset (not asset category) at 12/31/2012? How does it compare to 2011? Why do you think it increased? What was its relative impact on the change in