(Learning Objective 6: Using a cash flow statement) Excerpts from The Coca Cola Company statement of cash flows, as adapted, appear as follows:
|
The Coca Cola Company and Subsidiaries Consolidated Statements of Cash Flows (Adapted) |
||
|
Years Ended December 31, |
||
|
(In millions) |
20X4 |
20X3 |
|
Operating Activities |
||
|
Net cash provided by operating activities |
$ 4,110 |
$ 1,165 |
|
Investing Activities |
||
|
Purchases of property, plant, and equipment |
(769) |
(733) |
|
Acquisitions and investments, principally trademarks and bottling companies |
(651) |
(397) |
|
Purchases of investments |
(456) |
(508) |
|
Proceeds from disposals of investments |
455 |
290 |
|
Proceeds from disposals of property, plant, and equipment |
91 |
45 |
|
Other investing activities |
142 |
138 |
|
Net cash used in investing activities |
(1,188) |
(1,165) |
|
Financing activities |
||
|
Issuances of debt (borrowing) |
3,011 |
3,671 |
|
Payments of debt |
(3,937) |
(4,256) |
|
Issuances of stock |
164 |
331 |
|
Purchases of stock for treasury |
(277) |
(133) |
|
Dividends |
(1,791) |
(1,685) |
|
Net cash used in financing activities |
(2,830) |
(2,072) |
Required
As the chief executive officer of The Coca Cola Company, your duty is to write the management letter to your stockholders explaining Coca Cola’s major investing activities during 20X4. Compare the company’s level of investment with previous years and indicate how the company financed its investments during 20X4. Net income for 20X4 was $3,969 million.