The Coca-Cola Financial Accounting Essay Example | Topics and Well Written Essays - 1250 words

The Coca-Cola Financial Accounting - Essay ExampleVertical analysis. The assets have increased significantly from 34% to 35% because the company invested more. The light term investment rose from 7% to 9% raising the assets turn all over. In addition more assets were held for sale by the company and this increased the thoroughgoing assets significantly. The total equity reduced significantly from 37% to 33%.This was because of the reduced shareholders who run away due to low prices of share and dividends. The shareholders reduced by 4 % and this touch the total equity significantlyHorizontal analysis. In 2014 when revenues were 95% of the base year amounts, cost of goods sold was lessonly 93% of the base year amount. There has been a degree in revenue from 98% to 95% because the company has decreased the prices of the products and the brand. The selling price of the products was reduced due to the lower costs of production. In addition, the strain cost could have declined signifi cantly. This has significantly affected the net income which has reduced from 95% in 3013 to 78% in 2014.The Gross margin has increased significantly over years and this means that the business is doing well and its rising in profitability as the years progresses. This also implies that the company has a lot of currency to spend on other business ope symmetryns including marketing as compared to other companies.The company is not facing liquidity issues since the working capital ratio is more than one. Normally, a ratio that is less than 1 makes a company to face liquidity issues.