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ID: 2402817 • Letter: I

Question

it View Insert Format Tools Table Window Help Q Search in Do Design Layout References Mailings Review View 2 Share Sear D ??Week Two Homework-Saved to my Mac sign Layout References Mailings Review View 1 Styles Styles CONSOLDATED BALANCE SHEETS CURRENT ASSETS Cash and cash equivakets 4.7.4 $ 4093 Trade accouats receivabke, less allowances of $51 and 156, repectively 083317 187 2.200 2260 105 and othee assebs TOEAL CUERENT ASSETS INVESTMENTS Eqpity nethod ievestmens: Cocs-Cola Hellenic Bottling Company SA Coea Cola FESESA, SA.B da CV Cixa-Cola Amata Linited 01bez, principally betting ?mpanies and joint retures TOTAL INVESMENTS 1,753 PROPERTY PLANT AND EQU IPMENT- TRADEMARKS WITH INDEFINITE LIVES 8483 256 40519 43269 4 29 ASSETS TOTAL ASSETS llsle? ITIES INI) sI AREO" NV.RS' IQUIT1 CURRENT LIARITS 6245 6915 Loans and notes payable Current matanities ot koag-term debt Acerved iacome tases 5919 258 3273 ToTAI. LRIW.NI IAI:E.111ES 278 DEHERRED INCOME TAKES SHAR FONNERN. E.QI ?? Conion stock, 50.25 par vaka; Awhoriaed5,600 shares lswed 3,510 and 3,519 shares, respectively Capital surplus Reinveszed carsiagp Accunidxed other oompretenive income (less) Ireasary siock, at cost-1217 and 1ll shares 83L36235 20.472 21,744 48519 43,209 E English (India) Focus

Explanation / Answer

Solution a:

As there is no change in value of common stock from 2007 to 2008, it means Coke did not issue any stock in 2008.

Solution b:

Value of treasury stock increased from 2007 to 2008, therefore company repurchased common stock in 2008.

Nos of shares repurchased = 1207 - 1201 = 6 shares

This information can be found in shareholder equity section of balance sheet in treasury stock description field.

Solution c:

Coke uses accrual basis of accounting. We can tell this because accrued expenses are shown as part of current liabilities and prepaid expenses are shown as part of current assets.