Statement of Financial Position, Assets

Difficulty level: Basic

The statement of financial position provides creditors, investors, and analysts with information on company's resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company's assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Coca-Cola Co., Consolidated Statement of Financial Position, Assets

USD $ in millions

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Cash and cash equivalents 10,414  8,442  12,803  8,517  7,021 
Short-term investments 6,707  5,017  1,088  2,682  2,130 
Cash, cash equivalents and short-term investments 17,121 
13,459 
13,891 
11,199 
9,151 
Marketable securities 3,147  3,092  144  138  62 
Trade accounts receivable, less allowances 4,873  4,759  4,920  4,430  3,758 
Inventories 3,277  3,264  3,092  2,650  2,354 
Prepaid expenses and other assets 2,886  2,781  3,450  3,162  2,226 
Assets held for sale 2,973 
Current assets 31,304 
30,328 
25,497 
21,579 
17,551 
Equity method investments 10,393  9,216  7,233  6,954  6,217 
Other investments, principally bottling companies 1,119  1,232  1,141  631  538 
Other assets 4,661  3,585  3,495  2,121  1,976 
Property, plant and equipment, net 14,967  14,476  14,939  14,727  9,561 
Trademarks with indefinite lives 6,744  6,527  6,430  6,356  6,183 
Bottlers' franchise rights with indefinite lives 7,415  7,405  7,770  7,511  1,953 
Goodwill 12,312  12,255  12,219  11,665  4,224 
Other intangible assets 1,140  1,150  1,250  1,377  468 
Noncurrent assets 58,751 
55,846 
54,477 
51,342 
31,120 
Total assets 90,055 
86,174 
79,974 
72,921 
48,671 
Source: Coca-Cola Co., Annual Reports
Item Description The company
Cash and cash equivalents Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Coca-Cola Co.'s cash and cash equivalents declined from 2011 to 2012 but then slightly increased from 2012 to 2013.
Marketable securities Total debt and equity financial instruments including: (1) securities held-to-maturity, (2) trading securities, and (3) securities available-for-sale which are intended to be held for less than one year or the normal operating cycle, whichever is longer. Coca-Cola Co.'s marketable securities increased from 2011 to 2012 and from 2012 to 2013.
Trade accounts receivable, less allowances Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Coca-Cola Co.'s trade accounts receivable, less allowances declined from 2011 to 2012 but then increased from 2012 to 2013 not reaching 2011 level.
Inventories Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). Coca-Cola Co.'s inventories increased from 2011 to 2012 and from 2012 to 2013.
Current assets Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Coca-Cola Co.'s current assets increased from 2011 to 2012 and from 2012 to 2013.
Property, plant and equipment, net Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Coca-Cola Co.'s property, plant and equipment, net declined from 2011 to 2012 but then increased from 2012 to 2013 exceeding 2011 level.
Noncurrent assets Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer. Coca-Cola Co.'s noncurrent assets increased from 2011 to 2012 and from 2012 to 2013.
Total assets Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Coca-Cola Co.'s total assets increased from 2011 to 2012 and from 2012 to 2013.

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