COCA COLA COMPANY
Research Project
For
ACC 412
Presented to:
Overview of Coca-Cola
Leading the beverage industry for the third consecutive year, Coca-Cola, a common household name known around the world, climbs to the 4th spot in Fortune's 50 Most Admired Companies in the world for year 2012. When it comes to a refreshing cold soda, who does not know of Coca-Cola? The company was established in 1886 in Atlanta, Georgia at the Jacobs' Pharmacy soda fountain by pharmacist John Pemberton. In its humble beginning, a glass of this drink costed only five cents and only 9 glasses of Coca-Cola were sold each day. Since then, Coca-Cola has grown to be a multi-billion dollar company. Employing approximately 139,600
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High-Low Method: The highest revenue is $12,737,000, and the lowest is $6,103,000. The highest GDP is $ 15,321,000, and the lowest is $13,759,000. From the y = mx + b formula (where "y" is Revenue and "x" is GDP), we have m = 4.247 and b = -52,331,287. Projection of Sales Revenue Equation: Revenue = 4.247 * GDP - 52,331,287 According to the High-Low method, sales revenue and GDP has a positive relationship. This translates to revenue is increased when GDP is increased. For every dollar increase in GDP, sales revenue will increase by 4.247 dollars.
2. Simple Linear Regression Equation: Projection of Sales Revenue Equation: Revenue = 3.3679 * GDP - (3.978*107) The relationship between sales revenue and GDP is also positive: For each additional GDP in the country, the amount of sales revenue increases 3.3679 dollars. In other words, as GDP increases, the spending in the country also increases which results in the increase of sales revenue. Next we examine the relationship between sales revenue and real interest rate: Revenue = (4.169*107) – 2,791,339 * real interest
By calculating the different revenue between last year and current year, and divided by the revenue from current year, we get the revenue
GDP is the calculation of the total goods and services produced in one year. It measures the economy's size and compares how the economy performs in other countries. GDP is measured in three different ways, as the value of goods and services produced, as domestically produced goods and services spending, and as a factor income from firms. With the value of goods and services produced, GDP is calculated by adding the goods and
GDP, or gross domestic product, is the sum total value of all goods and services produced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as “real GDP”. Real GDP is a term that refers
Using base period CPI (1982-1984=100) (2007CPI/2006CPI) x 2006 Sales = Adjusted Sales (207.3/201.6) x $171,179 = $176,019 When adjusted for inflation, sales grew at a rate of 1.24%, which means that sales growth has kept pace with general inflation.
When we think about GDP, it is important to determine the country’s output. When I say the country’s total output I mean everything produced by the people of the country, as well as all the companies within the country. Today I will be discussing to you all the recent history and expected future conditions of the American economy.
The total revenue, TR, is the overall amount of all sources of a business’s income. It consists of total sales or profit, over a period of time. The TR can be calculated by taking the price and multiplying it by the quantity. For example, if a business decides to retail another product and the total revenue does increase, thus the marginal revenue would be greater than zero. However, if the business decides to sell another product and the marginal revenue is zero, then there would not be any changes to the total revenue.
The one way one can comprehend the United States economy is through looking at its GDP (Gross Domestic Product). Gross Domestic Product is the statistic employed to measure the aggregate output of the nation (Mankiw, 2011). More so, GDP is described as the total monetary value of finished services and goods that are produced in the country at a specific period in time. GDP is considered one of the principal pointers that gauge the health of a nation's economy and it is calculated in inflation-adjusted terms or in real terms (King, Gans & Mankiw, 2011). GDP entails all of public and private consumption, investments, government outlays, exports minus importers of a country. It is therefore calculated through the following formula GDP=C (consumption)+G (Government spending)+I (Investment)+NX(Exports-Imports) (Mankiw, 2011).
If production remains the same and all prices double relative to the base year, then the GDP deflator is
GDP is not only an important indicator to a country's economy growth but also to social and politic perspectives. GDP reflects unemployment rate, inflation and interest rate. The Federal Reserve has continuously raised the interest rate at .25 point for more than 10 successive times in other to attract more and more investment. Government spending, as a part of GDP, has also increased from year to year. As a year passes, economists, firms and governments look at GDP as an indicator for the following year's economic policy in order to keep the economy go in a right track. GDP is also an indicator of recession, when an economy experiences two successive declines in GDP, the economy is going through recession.
accounting? Be sure to identify any other issues that must be resolved to determine how revenue
A high GDP or a percentage increase is considered good and represents a positive, growing economy whereas a lower GDP (in comparison to other countries) or a percentage decrease represents just the opposite. In the article, it takes a closer look at the year so far and breaks it into quarters. The GDP has increased from 1.2% in January to 3% in August. The change and jump represents economic growth occurring.
Sales took the most percentage of total revenue. The revenue of sales increased gradually from $ 214,934 (in thousands) in 2010 to $ 260,832 in 2012 while the figure of royalties reduced gradually from $ 873 in 2010 to $ 681 in 2012 (in thousands). The revenue of other income increased from $ 1,286 to $ 1,325 during this period and then the figure decreased dramatically to $ 533 in the financial year 2012. In addition, in the financial year 2012, a new resource of revenue called membership was developed with the figure of $54.
Coca-Cola was invented by John Pemberton the Coca-Cola Company began in 1886. With more than 1.9 billion consumers a day, in more than 200 countries, Coca-Cola is dedicated to being the world’s largest beverage company by maintaining and gaining customers. Customer preference is a core value to coke. Coke has dedicated itself to meet the thirst needs of every customer. They engage with their customers at home, restaurants, sporting events. Almost everywhere customers go, they can find a coke product. They build their top line growth and capital efficiency through investment in FIFA World Cup, “Open Happiness” global campaign, and have many worldwide partners, increasing their business nearly 5% every year by creating a diverse customer base.
The history of Coca Cola began in 1886 when Dr. John S Pemberton, an Atlanta pharmacist created a tasty soft drink which could sell at soda fountains. Since then, Coca Cola grew to be a global brand and touched great heights. Today, it sells across 200 countries and is just as popular across all the markets and nations. The company today, owns or licenses and markets more than 500 non alcoholic beverage brands. The brand has only few major competitors in the global market. The daily servings of coca cola are estimated to be at 1.9 billion globally. (Coca-Colahellenic, n.d.) This is just another proof of the popularity of the brand which has a very large and diversified
First, sales stay positive and is relatively stable as evidenced in Exhibit 1. Consolidated Income Statement and in Exhibit 2. Horizontal Analysis - Trend Percentages of the Income Statement.