Statement of Cash Flows
Difficulty: Beginner
The cash flow statement provides information about a company's cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company's statement of financial position.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Coca-Cola Co., Consolidated Statement of Cash Flows
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated net income | 1,283 | 6,550 | 7,366 | 7,124 | 8,626 | ||||||
| (Income) loss from discontinued operations | (101) | – | – | – | – | ||||||
| Net income from continuing operations | 1,182 | 6,550 | 7,366 | 7,124 | 8,626 | ||||||
| Depreciation and amortization | 1,260 | 1,787 | 1,970 | 1,976 | 1,977 | ||||||
| Stock-based compensation expense | 219 | 258 | 236 | 209 | 227 | ||||||
| Deferred income taxes | (1,256) | (856) | 73 | (40) | 648 | ||||||
| Equity income, net of dividends | (628) | (449) | (122) | (371) | (201) | ||||||
| Foreign currency adjustments | 281 | 158 | (137) | 415 | 168 | ||||||
| Significant (gains) losses on sales of assets, net | 1,459 | 1,146 | (374) | 831 | (670) | ||||||
| Other operating charges | 1,218 | 647 | 929 | 761 | 465 | ||||||
| Other items | (269) | (224) | 744 | 149 | 234 | ||||||
| (Increase) decrease in trade accounts receivable | (141) | (28) | (212) | (253) | 28 | ||||||
| (Increase) decrease in inventories | (355) | (142) | (250) | 35 | (105) | ||||||
| (Increase) decrease in prepaid expenses and other assets | 571 | 283 | 123 | 194 | (163) | ||||||
| Increase (decrease) in accounts payable and accrued expenses | (445) | (540) | 1,004 | (250) | (158) | ||||||
| Increase (decrease) in accrued income taxes | (153) | 750 | (306) | 151 | 22 | ||||||
| Increase (decrease) in other liabilities | 4,052 | (544) | (516) | (316) | (556) | ||||||
| Net change in operating assets and liabilities | 3,529 | (221) | (157) | (439) | (932) | ||||||
| Net cash provided by operating activities | 6,995 | 8,796 | 10,528 | 10,615 | 10,542 | ||||||
| Purchases of investments | (16,520) | (15,499) | (15,831) | (17,800) | (14,782) | ||||||
| Proceeds from disposals of investments | 15,911 | 16,624 | 14,079 | 12,986 | 12,791 | ||||||
| Acquisitions of businesses, equity method investments and nonmarketable securities | (3,900) | (838) | (2,491) | (389) | (353) | ||||||
| Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 3,821 | 1,035 | 565 | 148 | 872 | ||||||
| Purchases of property, plant and equipment | (1,675) | (2,262) | (2,553) | (2,406) | (2,550) | ||||||
| Proceeds from disposals of property, plant and equipment | 104 | 150 | 85 | 223 | 111 | ||||||
| Other investing activities | (126) | (209) | (40) | (268) | (303) | ||||||
| Net cash used in investing activities | (2,385) | (999) | (6,186) | (7,506) | (4,214) | ||||||
| Issuances of debt | 29,857 | 27,281 | 40,434 | 41,674 | 43,425 | ||||||
| Payments of debt | (28,768) | (25,615) | (37,738) | (36,962) | (38,714) | ||||||
| Issuances of stock | 1,595 | 1,434 | 1,245 | 1,532 | 1,328 | ||||||
| Purchases of stock for treasury | (3,682) | (3,681) | (3,564) | (4,162) | (4,832) | ||||||
| Dividends | (6,320) | (6,043) | (5,741) | (5,350) | (4,969) | ||||||
| Other financing activities | (91) | 79 | 251 | (363) | 17 | ||||||
| Net cash used in financing activities | (7,409) | (6,545) | (5,113) | (3,631) | (3,745) | ||||||
| Net cash provided by operating activities from discontinued operations | 111 | – | – | – | – | ||||||
| Net cash used in investing activities from discontinued operations | (65) | – | – | – | – | ||||||
| Net cash used in financing activities from discontinued operations | (38) | – | – | – | – | ||||||
| Net cash provided by discontinued operations | 8 | – | – | – | – | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 242 | (6) | (878) | (934) | (611) | ||||||
| Cash and cash equivalents, net increase (decrease) during the year | (2,549) | 1,246 | (1,649) | (1,456) | 1,972 | ||||||
| Cash and cash equivalents, balance at beginning of year | 8,555 | 7,309 | 8,958 | 10,414 | 8,442 | ||||||
| Cash and cash equivalents, balance at end of year | 6,006 | 8,555 | 7,309 | 8,958 | 10,414 |
Based on: 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25), 10-K (filing date: 2014-02-27).
| Item | Description | The company |
|---|---|---|
| Net cash provided by operating activities | Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. | Coca-Cola Co.'s net cash provided by operating activities declined from 2015 to 2016 and from 2016 to 2017. |
| Net cash used in investing activities | Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. | Coca-Cola Co.'s net cash used in investing activities increased from 2015 to 2016 but then slightly declined from 2016 to 2017. |
| Net cash used in financing activities | Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. | Coca-Cola Co.'s net cash used in financing activities declined from 2015 to 2016 and from 2016 to 2017. |