Respond to the following in a minimum of 175 words: As discussed in the chapter, The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and they reported investment revenue of more than $1 billion in 2017. Explain why Coke accounts for some of its investments by the equity method and what that means? Is the over $1 billion in revenue reported in 2017 cash they can use? Provide an explanation for your response.

Respond to the following in a minimum of 175 words: As discussed in the chapter, The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and they reported investment revenue of more than $1 billion in 2017. Explain why Coke accounts for some of its investments by the equity method and what that means? Is the over $1 billion in revenue reported in 2017 cash they can use? Provide an explanation for your response.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 8PEB

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The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and they reported investment revenue of more than $1 billion in 2017. Explain why Coke accounts for some of its investments by the equity method and what that means? Is the over $1 billion in revenue reported in 2017 cash they can use?
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.7 million, and the 2018 balance sheet showed long-term debt of $5.9 million. The 2018 income statement showed an interest expense of $190,000. During 2018, the company had a cash flow to creditors of –$10,000 and the cash flow to stockholders for the year was $70,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,420,000, and that the firm reduced its net working capital investment by $79,000. What was the firm’s 2018 operating cash flow, or OCF
The 2017 balance sheet of Kerber’s Tennis Shop, Incorporated, showed $2.4 million in long-term debt, $720,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2018 balance sheet showed $4.1 million, $895,000, and $8.3 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $190,000. The company paid out $600,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $860,000, and the firm reduced its net working capital investment by $115,000, what was the firm's 2018 operating cash flow, or OCF?
The 2017 balance sheet of Kerber's Tennis Shop , Incorporated, showed $2.4 million long-term debt, $760,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.95 million $985,000, and $8.05 million in the same three accounts , respectively . The 2018 income statement showed an interest expense of $ 310,000 . The company paid out $590,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $690,000 , and the firm reduced its net working capital Investment by $185,000 , what was the firm's 2018 operating cash flow , or OCF ? Typed solution
Higgins Company has been operating for one year (2014). You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of 2015, Higgins’s T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 4,400 2,600 3,200 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,500 390 Stockholders’ Equity: Common Stock Additional Paid-in Capital Retained Earnings 660 2,640 5,010 The following transactions occured in 2015: (a) Borrowed $3,100 from a local bank, signing a note due in three years. (b) Sold $1,400 of the investments for $1,400 cash. (c) Sold one-half of the property and equipment for $1,600 in cash. (d) Declared and paid $360 in cash…
As of December 31, 2015, Lincolnshire Company had assets of $1,850,000 and liabilities of $570,000. During 2016, the stockholders invested an additional $100,000 and paid dividends of $60,000 from the business. What is the net income for the company during 2016, assuming that as of December 31, 2016, assets were $1,960,000, and liabilities were $510,000? Group of answer choices A) $170,000 B) $130,000 C) $210,000 D) $40.000
Prepare a 2015 statement of financial position for Lowes Corp. based on the following information: cash = $195,000, patents and copyrights = $780,000, accounts payable = $405,000, accounts receivable = $137,000, tangible net fixed assets = $2,800,000, inventory = $264,000, notes payable = $160,000, accumulated retained earning = $1,934,000, long-term debt = $1,195,000. Be sure to list the accounts in order of their liquidity.
Some balance sheet information is shown below: (all values in millions of dollars). a. What change in the book value of the company's equity took place at the end of 2018? b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain. a. What change in the book value of the company's equity took place at the end of 2018? The book value of equity ▼ increased or decreased by $_____ billion from the end of the previous year, and was ▼ positive or negative. (Select from the drop-down menus and round to three decimal places.)
Volbeat Corp. shows the following information on its 2015 income statement: sales = $255,000; costs = $156,000; other expenses = $7,900; depreciation expense = $15,600; interest expense = $14,800; taxes = $21,245; dividends = $12,000. In addition, you're told that the firm issued $6,300 in new equity during 2015 and redeemed $4,800 in outstanding long-term debt. a. What is the 2015 operating cash flow? b. What is the 2015 cash flow to creditors? c. What is the 2015 cash flow to stockholders?
a) Calculate the following ratios for 2016 and 2015, showing detailed calculations as to how you arrive at each number. A ROE B Gross profit margin C Total asset turnover D Inventory turnover E Current ratio F Debt-to-equity G Interest coverage ratio. b) Using the financial statements and the ratios calculated above (and any other ratios you like to calculate), discuss the performance of Cobham PLC in 2016. c) Critically discuss the need for the public limited companies to prepare a Statement of Cash Flows and explain the usefulness of the information contained therein from the perspective of a financial analyst.
From 2015 to 2019, what was the total cash flow that Mydeco generated from operations? (Round to one decimal place.) What fraction of the total in (a) was spent on capital expenditures? (Round to one decimal place.) What fraction of the total in (a) was spent paying dividends to shareholders? (Round to one decimal place.) What was Mydeco's total retained earnings for this period? (Round to one decimal place.)
During 2018, ABC had the following cash flows: received cash of $5,000 billed to a customer in 2017; earned $20,000 of net income; paid interest of $6,000 on a corporate bond issued; paid dividends of $8,000 to its stockholders; borrowed $40,000 from a local bank; purchased its own shares of common stock for $10,000. What is ABC's net cash flows from financing activities for 2018?