Analyzing Coca Cola’s Current Liabilities and Contingencies Disclosures Refer to the financial statements and related notes of the Coca Cola Company in Appendix A of this book.
Required
1. What were the total current liabilities at the end of 2004? What was the largest current liability?
2. What did accounts payable and accrued expenses consist of at the end of 2004?
3. What was the total loans and notes payable and what did they consist of at the end of 2004? What was the total of the lines of credit (and other short term credit facilities) that were available to the company at the end of 2004? How much is outstanding? Why do you think the company disclosed the lines of credit information?
4. How much was the company contingently liable for in regard to the guarantees of indebtedness owed by third parties at the end of 2004? What does this mean? How likely is it that the company will have to satisfy these guarantees?