NIMRA TAHIR

Name: Coca-Cola Co. Ticker: KO Exchange: New York Stock Exchange (NYSE) Number of shares of common stock outstanding: 4,415,922,733 Industry: Consumer Goods Country:`United States

12 months ended Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Net operating revenues 48,017 46,542 35,119 30,990 31,944 Cost of goods sold -19,053 -18,216 -12,693 -11,088 -11,374 Gross profit 28,964 28,326 22,426 19,902 20,570 Selling, general and administrative expenses -17,738 -17,440 -13,158 -11,358 -11,774 Other operating charges -447 -732 -819 -313 -350 Operating income 10,779 10,154 8,449 8,231 8,446 Interest income 471 483 317 249 333 Interest expense -397 -417 -733 -355 -438 Equity income (loss), net 819 690 1,025 781 -874 Other income (loss), net 137 529 5,185 40 39 Income before income taxes 11,809 11,439 14,243 8,946 7,506 Income taxes -2,723 -2,805 -2,384 -2,040 -1,632 Consolidated net income 9,086 8,634 11,859 6,906 5,874 Net income attributable to noncontrolling interests -67 -62 -50 -82 -67 Net income attributable to shareowners of The Coca-Cola Company 9,019 8,572 11,809 6,824 5,807
Source: Coca-Cola Co., Annual Reports

Coca-Cola Co., liquidity ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 1.09 1.05 1.17 1.28 0.94 0.77 0.78 0.85 0.95 0.62 0.59 0.58 0.61 0.67 0.38

Current ratio Quick ratio Cash ratio

Source: Based on data from Coca-Cola Co. Annual Reports Stock Analysis on Net (www.stock-analysis-on.net) Copyright 2014 EBIT Financial Analyses Center

MC MC TC Q =

TC Q = Marginal Cost = Change in Total Cost Change in Output

 : Opportunity cost is also known as alternative cost. The opportunity cost of producing one unit of X-commodity is the amount of Y-commodity that must be sacrificed.

For example, in an economy two goods X and Y are produced. The quantity of X good is OX and Y good is OY. If the quantity of Y commodity has to increase from OY to YY, then the quantity of X commodity has increased from OX to OX.

 Sunck costs are the historical costs which are made in past. These costs are irrelevant while making decisions.

 The economic condition of Pakistan has not been stable for a long time but The recent economic indicators suggest that the economy is growing and macroeconomic issues are getting sold but at the same time there has not any marked increase in the consumer buying power (inflation). When the recession occurs the price of bottles are dropped down to increase the sales and to achieve the targets of the company. So overall economy of Pakistan directly affects the cost and price of the Coca-Cola Company