Week 4 Homework
Review the 2014 Annual Report on Form 10-K for The Coca-Cola Company. Respond to the
following questions in complete sentences and include the page number of the report where you
I found your answer.
Category: Operating Activities
1. State whether your corporation uses the direct or indirect method of preparing the
Statement of Cash Flows and describe how the Statement would be different under
these two methods.
2. What are the largest increases and decreases in the operating activities section of
your corporation’s Statement of Cash Flows?
3. Given the industry, your corporation operates in and the current economic
environment, explain any unexpected operating activities that caused cash flow to
Category: Investing and Financing Activities
1. Explain similarities and or differences in preparing the Statement of Cash Flows using
International Financial Reporting Standards (IFRS).
2. Describe investments reported on your corporation’s Statement of Cash Flows in the
current and most recent past year.
3. Review your corporation’s Statement of Cash Flows over the past 3 years and
explain any financing trends.
1. Calculate the following ratio for the most recent two years and comment on the
results of your ratio analysis. How does the result for your corporation compare to the
a. Free cash flow