Excel trendline pro forma financial statements

Perhaps the most important line of the cash flow statement is the Net Cash Flow from Operations. Operating activities make up the day-to-day business, like selling products, purchasing inventory, paying wages, and paying operating expenses. This analysis points to the reason we perform trend analysis-to identify the increases and decreases in dollar amounts from one year to the next and to take a close look at unusual trends.Cash Flow Statement Essentials Operating Activities It also resulted in the reporting of a one-time gain on the income statement of $4,978,000,000, which came from Coca-Cola remeasuring its equity interest in CCE to fair value upon close of the transaction in 2010. This resulted in significant increases in noncurrent assets and noncurrent liabilities, which were acquired as part of this transaction. In 2010, Coca-Cola acquired the remaining 67 percent of Coca-Cola Enterprises, Inc.вЂ™s (CCE) North America business that Coca-Cola did not already own. From reading the notes to the financial statements, the authors were able to identify the main source of these increases. The increases identified in almost every asset, liability, and shareholdersвЂ™ equity line item are significant. Of course, total liabilities and shareholdersвЂ™ equity also increased by the same amount. Question: What are some of the key big picture items identified in the balance sheet trend analysis shown in Figure 13.2 'Balance Sheet Trend Analysis for '?ДЄnswer: Overall, total assets increased by $24,250,000,000, or 49.8 percent. Moving to current liabilities, accounts payable and accrued liabilities increased by 33.1 percent, loans and notes payable increased 20.0 percent, and other current liabilities decreased 391.7 percent (mostly attributable to a significant increase in the current portion of long-term debt). Other current assets increased 42.0 percent. ( Chapter 12 'How Is the Statement of Cash Flows Prepared and Used?' covers the statement of cash flows.) Marketable securities increased 122.6 percent, accounts receivable increased 17.9 percent, and merchandise inventory increased 12.6 percent. Coca-ColaвЂ™s statement of cash flows would provide detailed information regarding this increase. Question: What does the balance sheet trend analysis in Figure 13.2 'Balance Sheet Trend Analysis for ' tell us about current assets and current liabilities for Coca-Cola ?ДЄnswer: Figure 13.2 'Balance Sheet Trend Analysis for ' shows that cash and cash equivalents increased by $2,048,000,000, or 22.4 percent. Net income will appear to have an unusually large increase as we cover various measures of performance, but keep in mind that the one-time gain in 2010 of $4,978,000,000 caused most of the increase from 2009 to 2010. This is important as we continue our analysis of Coca-Cola Company throughout the chapter. This one-time gain caused an unusually large increase in net income for 2010. The significant increase in other income (expenses), net of 555.6 percent relates to a one-time gain of $4,978,000,000 resulting from Coca-ColaвЂ™s acquisition of Coca-Cola Enterprises, Inc., in 2010 (this information comes from the notes to the financial statements).

The increase in selling and administrative expenses of $1,800,000,000, or 15.8 percent, outpaced the increase in net sales, resulting in a relatively small increase in operating income of $218,000,000, or 2.6 percent. The increase in net sales and related increase in cost of goods sold resulted in an increase in gross margin of $2,524,000,000, or 12.7 percent. Cost of goods sold had a corresponding increase of $1,605,000,000, or 14.5 percent. For example, net sales 13.3 percent increase equals $4,129 Г· $30,990.ДЇigure 13.1 'Income Statement Trend Analysis for ' shows that net sales increased by $4,129,000,000, or 13.3 percent.

Note: Percent change for each line item is found by dividing the increase (decrease) amount by the 2009 amount. Figure 13.1 Income Statement Trend Analysis for Coca-Cola

Excel trendline pro forma financial statements