Nobody downloaded yet

Use of the financial statements to make business decisions - Essay Example

Comments (0) Cite this document
Summary
The essay "Use of the financial statements to make business decisions" analyzes the Coca-Cola financial statements in order to improve the business performance. This analysis establishes three major ways in which the Coca-Cola financial statements can be used for making business decisions…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Use of the financial statements to make business decisions
Read TextPreview

Extract of sample
"Use of the financial statements to make business decisions"

Download file to see previous pages When the calculations are done, they indicate that at a price of $40.97, the Coca-Cola Company spent a total of $4,015.06 million to repurchase 98 million of common stock in 2014. On the other hand, at a price of $37.11, the company used a total of $4,490.43 million to purchase 121 million shares in 2012. This indicates that the company spent just $475.37 million to repurchase 23 million more shares in 2012, which means that the extra shares only cost an average of $20.66 per common stock repurchased in 2012. This simply goes to show that the extra shares of common stock that were purchased in 2012 above the 98 million mark were very, compared to the price of the common stock in 2014, since they cost 50% less. Additionally, if the Coca-Cola Company had to repurchase 121 million common stocks in 2014, it would have used a total of $4957.37 compared to $4490.43 that the company used to repurchase 121 million common stick on 2012, which shows that the Coca-Cola Company would have saved a total of $466.94 million, if it would have purchased more common stocks in 2012.
Therefore, based on these calculations, it would be much cheaper for Coca-Cola Company to repurchase more common stock when the prices are lower since it would save a lot of money. In this respect, the Coca-Cola Company financial statements can help the management to make a decision on whether to use some more of the company’s profits to repurchase more common stocks, other than waiting until the price of the common stock increases. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Use of the financial statements to make business decisions Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1701043-use-of-the-financial-statements-to-make-business-decisions
(Use of the Financial Statements to Make Business Decisions Essay)
https://studentshare.org/finance-accounting/1701043-use-of-the-financial-statements-to-make-business-decisions.
“Use of the Financial Statements to Make Business Decisions Essay”, n.d. https://studentshare.org/finance-accounting/1701043-use-of-the-financial-statements-to-make-business-decisions.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Financial Information for Business Decisions
...?Financial Information for Business Decisions Table of Contents Introduction 3 Company Overview 3 Business Model Analysis of Wal-Mart 4 Current Business Model of Wal-Mart 5 Changes in Wal-Mart over Five Years 8 Competitor Analysis 9 Financial Analysis Based on the Income Statements 10 Conclusion 11 References 13 Appendices 15 Appendix 1 15 Appendix 2 16 Introduction The financial information plays an important role in the companies not only for assessing the performance of the business but also for taking business decisions. This study aims at analyzing...
10 Pages(2500 words)Essay
Financial statements
...the bottom output of the statement is transferred to the equity section of the balance sheet. Another relation among the statements is the cash balance illustrated in the balance sheet is the same ending balance of cash that is illustrated in the statement of cash flow after all the movement from the three activities. Superior Living seeks to enter into an IPO process in order to become a public company in the near future. It is essential for the financials of the firm to be completely accurate because investors rely on financial information contained in the financial statement of a company to make...
3 Pages(750 words)Essay
Financial Information for Business Decisions
...?Executive Summary Marks and Spencer, an internationally recognized is considered synonymous with high fashion and trend setting quality. Marksand Spencer is regarded as the premier retailer in the United Kingdom catering to more than 21 million customers. Keeping in pace with the globalization, the company is planning to expand its business to other frontiers. As per the audited financial statement of the company for the financial year 2010, the company employs more than 176,000 and has its operations expanded to more than 41 countries in the world. Marks and Spencer’s well established business attracts a great deal of consumer base irrespective of...
8 Pages(2000 words)Essay
Financial Statements
...on the fair presentation of the publicly listed companies who offer their stocks to the general public. The SEC monitors and punishes companies that do not comply with SEC’s business policies (Wild, Shaw, Chiappetta, 2011). • Annual report; and The annual report is composed to three financial statements. The balance sheet shows the assets, liabilities, and capital of the business. The income statement shows the revenues, cost of revenues, operating expenses, net income or net loss amounts. The statement of cash flows shows the sources of cash inflows and the sources of cash outflows. The annual report is used by...
4 Pages(1000 words)Essay
Financial Statements
...?Financial ments 8th, January, Introduction A financial ment can be defined as a record that shows the financial activities of a business, individual, or other entity. Financial statements act as indicators of the financial position of a company and are useful to different users wishing to make financial decisions. The four basic financial statements are balance sheet, income statement, statement of changes in equity, and cash flow statement. Financial...
4 Pages(1000 words)Essay
Financial statements
...the balance sheets, income statements, cash flow statements and the statements of shareholders’ equity (Sinha, 2007). There are some aspects of relationship between these financial records. The three financial records are used to show the financial situation of the company. First, a balance sheet is a financial statement that is used to show what a company owns and what it owes to others, in terms of the assets and the liabilities of the company (USEC, 2007). The income statement is used to show the amount of money that the organization...
4 Pages(1000 words)Research Paper
Financial Statements
...of accounts rely heavily on the educated judgment of management and the corporate auditor" (Hooke 1998 p.153). The accountant assures that these educated judgments are a fair representation of the company's financial status. When a financial statement is read, there are assumptions made that help to accurately interpret the numbers. By the use of conventions, statements are standardized to assure that they will present an accurate view of the business. One convention is that asset value is based on the original value. No account would be taken due to changing prices over time. Equipment would be depreciated against its original cost, not...
4 Pages(1000 words)Essay
Financial Statements
..., have put pressure on them to include a cross-functional team approach in strategic operations of the company. This cross-functional team approach, where management accountants are forced to be aware of things outside the realms of accounting (and accounting information), will ensure that they have a complete picture of the enterprise, and thus can provide better decision options to company management. Cross functional team approach affords managers to have timely and valuable information, and all the wherewithal to react quickly and decisively to a rapidly changing market place. VI. Conclusion Basic financial statements are a good source of accounting information of...
8 Pages(2000 words)Essay
Financial Statements
...as the percentage mark up or the rate of added profit to the cost of the product service sold or rendered. The gross profit ratio of Google indicates that it is a profitable company because its mark-up ranges from 58% to a high of 64%. In this ratio, 2012 is a conservative year for Google because it has only a margin of 58% b. Operating income margin The operating ratio indicates the net profit realized on each dollar of sales. Google fared very well with this ratio registering an operating margin of 25% to 35% indicating that for every dollar of sales, it makes a net profit of $.25 to $.35 and this is very laudable considering that there is a global recession. This ratio also indicates the efficiency of Google in...
2 Pages(500 words)Essay
Financial statements
...Financial ments Exposure to financial ments Being the employee of a large textile entity, I have experienced a relatively greater exposure to the financial statements. My job is related to the sale of yarn for which I have to check out the financial statements of the previous periods. The reason behind checking the financial statements is to make a comparison of the existing sales performance with the previous period’s performance. Not only this, I also need to know the costs associated with yarn sales. Role for preparation of financial statements Due to integration of various departments in my organization, I closely work with accounts and finance department which is mainly responsible for the preparation of financial statements... . They...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Use of the financial statements to make business decisions for FREE!
Contact Us