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I think something is off with my rate of return on assets for cocacola and times interest earned ratio. I think I may be making an excel error but want to make sure I am pulling from the right numbers to double check

I think something is off with my rate of return on assets for cocacola and times interest earned ratio. I think I may be making an excel error but want to make sure I am pulling from the right numbers to double check

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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I think something is off with my rate of return on assets for cocacola and times interest earned ratio. I think I may be making an excel error but want to make sure I am pulling from the right numbers to double check

Below are the ratios (with excel formulas) calculated for Pepsi-Co, Inc. for you -all you need to do is calculate the Coca-Cola Company ratios Pepsi-Co, Inc. The Coca-Cola Company Selected Financial Data Selected Financial Data For years ended December 31 For years ended December 31 2020 2019 2018 2020 2019 2018 Acid-test ratio (CA-inventory-prepaid)/CL 0.77 0.66 0.82 0.96 0.56 0.69 Current ratio 0.98 0.86 0.99 1.32 0.76 0.87 Debt ratio 0.85 0.81 0.81 0.76 1.32 1.15 Earnings per share 5.14 5.23 8.84 1.8 2.09 1.51 Inventory turnover Net income ($ in millions) Rate of return on assets 8.47 9.32 9.39 2.71 2.97 4.25 $ 7,120 $ 7,314 $ 12,515 $ 7,747 $ 8,920 $ 6,434 10.97% 13.05% 13.40% 9.08% 8.05% 9.54% Receivables turnover 8.67 8.98 9.05 9.28 9.74 9.31 Return on assets 9.34% 10.31% 17.69% 7.60% 9.59% 6.83% Operating income percentage Revenues ($ in millions) 14.32% 15.32% 15.64% 27.25% 27.06% 26.68% $ 70,372 $ 67,161 $ 64,661 $ 33,014 $ 37,266 $ 34,300 Times interest earned ratio 9.04 10.96 8.54 4.36 7.24 -10.66 Working capital ($ in millions) (371) (2,816) (245) 4,639 (6,562) (3,852) Notes:
Transcribed Image Text:Below are the ratios (with excel formulas) calculated for Pepsi-Co, Inc. for you -all you need to do is calculate the Coca-Cola Company ratios Pepsi-Co, Inc. The Coca-Cola Company Selected Financial Data Selected Financial Data For years ended December 31 For years ended December 31 2020 2019 2018 2020 2019 2018 Acid-test ratio (CA-inventory-prepaid)/CL 0.77 0.66 0.82 0.96 0.56 0.69 Current ratio 0.98 0.86 0.99 1.32 0.76 0.87 Debt ratio 0.85 0.81 0.81 0.76 1.32 1.15 Earnings per share 5.14 5.23 8.84 1.8 2.09 1.51 Inventory turnover Net income ($ in millions) Rate of return on assets 8.47 9.32 9.39 2.71 2.97 4.25 $ 7,120 $ 7,314 $ 12,515 $ 7,747 $ 8,920 $ 6,434 10.97% 13.05% 13.40% 9.08% 8.05% 9.54% Receivables turnover 8.67 8.98 9.05 9.28 9.74 9.31 Return on assets 9.34% 10.31% 17.69% 7.60% 9.59% 6.83% Operating income percentage Revenues ($ in millions) 14.32% 15.32% 15.64% 27.25% 27.06% 26.68% $ 70,372 $ 67,161 $ 64,661 $ 33,014 $ 37,266 $ 34,300 Times interest earned ratio 9.04 10.96 8.54 4.36 7.24 -10.66 Working capital ($ in millions) (371) (2,816) (245) 4,639 (6,562) (3,852) Notes:
Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, Ș in Millions CURRENT ASSETS Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 Cash and cash equivalents $ 6,795 $ 6,480 $ 9,077 Revenues 33,014 37,266 34,300 Short-term investments 1,771 1,467 2,025 Cost of Goods and Services Sold 13,433 14,619 13,067 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8,566 7,947 11,102 GROSS PROFIT 19,581 22,647 21,233 Marketable securities 2,348 3,228 5,013 Selling, General and Administrative Expense 9,731 12,103 11,002 Trade accounts receivable, less allowances of $524 and $501, respectively 3,144 3,971 3,685 Other Cost and Expense, Operating 853 458 1,079 Inventories 3,266 3,379 3,071 OPERATING INCOME 8,997 10,086 9,152 Prepaid expenses and other assets 1,916 1,886 2,059 Interest income 370 563 689 TOTAL CURRENT ASSETS 19,240 20,411 24,930 Interest expense 1,437 946 950 EQUITY METHOD INVESTMENTS 19,273 19,025 19,412 Equity income (loss) - net Other income (loss) - net 978 1,049 1,008 OTHER INVESTMENTS 812 854 867 841 34 (1,674) OTHER ASSETS 6,184 6,075 4,148 INCOME BEFORE INCOME TAXES 9,749 10,786 8,225 Deferred Tax Assets, Net, Noncurrent 2,460 2,412 2,674 Income taxes 1,981 1,801 1,749 PROPERTY, PLANT AND EQUIPMENT - net 10,777 10,838 9,598 CONSOLIDATED NET INCOME 7,768 8,985 6,476 TRADEMARKS WITH INDEFINITE LIVES 10,395 9,266 6,682 Net Income (Loss) Attributable to Noncontrolling Interest 21 65 42 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 109 51 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 7,747 8,920 6,434 GOODWILL 17,506 16,764 14,109 OTHER INTANGIBLE ASSETS 649 627 745 BASIC NET INCOME PER SHARE (in dollars per share) 1.8 2.09 1.51 TOTAL ASSETS 87,296 86,381 83,216 DILUTED NET INCOME PER SHARE (in dollars per share) 1.79 2.07 1.5 CURRENT LIABILITIES AVERAGE SHARES OUTSTANDING (in shares) 4295 4276 4259 Accounts payable and accrued expenses 11,145 11,312 9,533 Effect of dilutive securities (in shares) 28 38 40 Notes and Loans Payable, Current 2,183 10,994 13,835 AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) 4323 4314 4299 Current maturities of long-term debt 485 4,253 5,003 Accrued income taxes 788 414 411 NOTES: TOTAL CURRENT LIABILITIES 14,601 26,973 28,782 Tax rate= Provision for Income Taxes/Income before taxes 0.2032 0.1670 0.2126 LONG-TERM DEBT 40,125 27,516 25,376 OTHER LIABILITIES 9,453 8,510 7,646 DEFERRED INCOME TAXES 1,833 2,284 2,354 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; authorized – 11,200 shares; issued – 7,040 shares 1,760 1,760 1,760 Capital surplus 17,601 17,154 16,520 Reinvested earnings 66,555 65,855 63,234 Accumulated other comprehensive income (loss) (14,601) (13,544) (12,814) Treasury stock, at cost – 2,760 and 2,772 shares, respectively (52,016) (52,244) (51,719) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 19,299 18,981 16,981 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,985 2,117 2,077 $ 21,284 $ 21,098 $ 86,381 $ 19,058 $ 83,216 TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $87,296
Transcribed Image Text:Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, Ș in Millions CURRENT ASSETS Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2018 Cash and cash equivalents $ 6,795 $ 6,480 $ 9,077 Revenues 33,014 37,266 34,300 Short-term investments 1,771 1,467 2,025 Cost of Goods and Services Sold 13,433 14,619 13,067 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8,566 7,947 11,102 GROSS PROFIT 19,581 22,647 21,233 Marketable securities 2,348 3,228 5,013 Selling, General and Administrative Expense 9,731 12,103 11,002 Trade accounts receivable, less allowances of $524 and $501, respectively 3,144 3,971 3,685 Other Cost and Expense, Operating 853 458 1,079 Inventories 3,266 3,379 3,071 OPERATING INCOME 8,997 10,086 9,152 Prepaid expenses and other assets 1,916 1,886 2,059 Interest income 370 563 689 TOTAL CURRENT ASSETS 19,240 20,411 24,930 Interest expense 1,437 946 950 EQUITY METHOD INVESTMENTS 19,273 19,025 19,412 Equity income (loss) - net Other income (loss) - net 978 1,049 1,008 OTHER INVESTMENTS 812 854 867 841 34 (1,674) OTHER ASSETS 6,184 6,075 4,148 INCOME BEFORE INCOME TAXES 9,749 10,786 8,225 Deferred Tax Assets, Net, Noncurrent 2,460 2,412 2,674 Income taxes 1,981 1,801 1,749 PROPERTY, PLANT AND EQUIPMENT - net 10,777 10,838 9,598 CONSOLIDATED NET INCOME 7,768 8,985 6,476 TRADEMARKS WITH INDEFINITE LIVES 10,395 9,266 6,682 Net Income (Loss) Attributable to Noncontrolling Interest 21 65 42 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 109 51 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 7,747 8,920 6,434 GOODWILL 17,506 16,764 14,109 OTHER INTANGIBLE ASSETS 649 627 745 BASIC NET INCOME PER SHARE (in dollars per share) 1.8 2.09 1.51 TOTAL ASSETS 87,296 86,381 83,216 DILUTED NET INCOME PER SHARE (in dollars per share) 1.79 2.07 1.5 CURRENT LIABILITIES AVERAGE SHARES OUTSTANDING (in shares) 4295 4276 4259 Accounts payable and accrued expenses 11,145 11,312 9,533 Effect of dilutive securities (in shares) 28 38 40 Notes and Loans Payable, Current 2,183 10,994 13,835 AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) 4323 4314 4299 Current maturities of long-term debt 485 4,253 5,003 Accrued income taxes 788 414 411 NOTES: TOTAL CURRENT LIABILITIES 14,601 26,973 28,782 Tax rate= Provision for Income Taxes/Income before taxes 0.2032 0.1670 0.2126 LONG-TERM DEBT 40,125 27,516 25,376 OTHER LIABILITIES 9,453 8,510 7,646 DEFERRED INCOME TAXES 1,833 2,284 2,354 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; authorized – 11,200 shares; issued – 7,040 shares 1,760 1,760 1,760 Capital surplus 17,601 17,154 16,520 Reinvested earnings 66,555 65,855 63,234 Accumulated other comprehensive income (loss) (14,601) (13,544) (12,814) Treasury stock, at cost – 2,760 and 2,772 shares, respectively (52,016) (52,244) (51,719) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 19,299 18,981 16,981 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,985 2,117 2,077 $ 21,284 $ 21,098 $ 86,381 $ 19,058 $ 83,216 TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $87,296
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