Ch 9 Solution P 9-1 - Problem 9-1 a Coca-Cola Year 3...

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Problem 9-1 a. Coca-Cola INCOME STATEMENT Year 3 Estimate Year 2 Year 1 Net sales 20,297 20,092 19,889 Cost of goods 6,106 6,044 6,204 Gross profit 14,191 14,048 13,685 Selling general & administrative expense 7,972 7,893 9,221 Depreciation & amortization expense 863 803 773 Interest expense -66 -308 292 Income before tax 5,422 5,660 3,399 Income tax expense 1,620 1,691 1,222 Net income 3,802 3,969 2,177 Outstanding shares 3,491 3,491 3,481 RATIOS Sales growth 1.02% 1.02% Gross Profit Margin 69.92% 69.92% Selling General & Administrative Exp / Sales 39.28% 39.28% Depreciation (depn exp / pr yr PPE gross) 12.14% 12.14% INT (int / pr yr LTD) -5.45% -5.45% Tax (Inc Tax / Pre-tax inc) 29.88% 29.88%
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Problem 9-1 — continued BALANCE SHEET Year 3 Estimate Year 2 Year 1 Cash 587 1,934 1,892 Receivables 1,901 1,882 1,757 Inventories 1,066 1,055 1,066 Other 2,300 2,300 1,905 Total current assets 5,854 7,171 6,620 Property, plant & equipment 8,305 7,105 6,614 Accumulated depreciation 3,515 2,652 2,446 Net property & equipment 4,791 4,453 4,168 Other assets 10,793 10,793 10,046 Total assets 21,438 22,417 20,834 Accounts payable & accrued liabilities 3,717 3,679 3,905 Short-term debt & cmltd 3,899 3,899 4,816 Income taxes 815 851 600 Total current liab 8,431 8,429 9,321 Deferred income, taxes & other 1,403 1,403 1,362 Long term debt 1,219 1,219 835 Total liabilities 11,053 2,622 2,197 Common stock 873 873
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