RUNNING HEAD: ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

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ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

ABSTRACT

An important part of the business planning process is the preparation of financial statements

to predict the outcome of an organization’s results in future periods. This analysis looks at the

financial statements and reports of Coca Cola company and generate a detailed analysis to

project the company’s financial health.Financial projections are based on the compilation of

financial statements from the previous financial years to the current financial year. This

projection aids the companyin getting a more accurate view of their progress and future

performance and also very important part of developing a sound strategy. The financials tell

what goals to keep and what to cut.These Projections can also be a guide to help your

business grow without running out of cash. To generate and support additional revenues,

additional cash is always required. Financial projections helpassess what additional assets are

needed to support increased revenue and the potential impact on the current balance sheet.

The projected financial plan indicates how much additional debt or equity the need to remain

solvent and financially healthy.

Financial Statements and Projections

Financial projections use existing or estimated financial data to forecast the company’s future

income and expenses. Itincludes different financial situations so that it can be seen how

adjustmentsin one aspect of the company’s finances (such as higher sales or lower operating

expenses) might affect the company’s profitability.

ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

1.Income Projection Statement

Projected Income Statement projects the estimates of revenue as well as expenses that the

company might bear in the future period. It can either be monthly, quarterly, or yearly as per

our requirement.

2.Forecasted 4-Year Profit and Loss

This is done to provide executives and managers with a dynamic planning tool that speeds up

and improves decisions related to revenues, expenses and profitability.

ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

COCA COLA COMPANY

GRAPHICAL PROJECTION OF PROFIT AND LOSS

4.Sales Forecast

A sales forecast is a prediction of future sales revenue. Sales forecasts are usually based on

historical data, industry trends, and the status of the current sales pipeline. Businesses use the

sales forecast to estimate weekly, monthly, quarterly, and annual sales totals.
ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

COCA COLA COMPANY

SALES FORECAST

5. Cash Flow Projection

A projected cash flow statement is best defined as a listing of expected cash inflows and

outflows for an upcoming period (usually a year). Cash inflows include cash operating and

capital receipts and such as company revenues. Cash outflows usually include such things as

company operating and capital expenditures, operating expenses, and loan payments.
ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

6. Projected Balance Sheet

ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

7. Payback calculation

It is an important calculation used in capital budgeting to help evaluate capital investments

(Fridson, 2014). It is calculated by calculating the time period over which the Initial Capital

investment is returned by the business and the business by itself starts generating more

capital. Thus, the time frame between these two is known as calculation of the payback

period.
ANALYSIS OF FINANCIAL STATUS-COCA COLA COMPANY

REFERENCES

Access Denied. (n.d.). Https://Www.Dnb.Com/Business-Directory/Company-

Profiles.The_coca-

Cola_company.3239928e6d452c95e8843ed3cfa501f4.Html#financials-Anchor.

Retrieved May 25, 2021, from https://www.dnb.com/business-directory/company-

profiles.the_coca-

cola_company.3239928e6d452c95e8843ed3cfa501f4.html#financials-anchor

Fridson, M. S., & Alvarez, F. (2011). Financial statement analysis: a practitioner's guide (Vol. 597).

John Wiley & Sons.