Paper Details
Use the 2008 statement of cash flows for The Coca-Cola Company on the next page to answer the following questions:
1. Compute Coca-Cola?s ?Net cash provided by operations after reinvestment.? This amount is computed by subtracting ?Net cash from investing activities? from ?Net cash from operating activities.? Interpret the results of the calculation for Coca-Cola for the period 2006?2008.
2. In its operating activities section, Coca-Cola subtracts gains on sales of assets in computing net cash from operating activities. Why are these gains subtracted?
3. Think of the dealings that Coca-Cola has with its shareholders. The shareholders give money to the company by purchasing new shares of stock. In turn, the company returns cash to shareholders by paying cash dividends and by repurchasing shares of stock. For the three-year period 2006?2008, did Coca-Cola receive more cash from its shareholders than it paid back to them, or did it pay more cash to its shareholders than it received? Show your calculations.
4. Look carefully at the statement of cash flows. Did the U.S. dollar get stronger or weaker during the three-year period2006?2008?