1 Was the indirect method used to calculate cash flow from o

1. Was the indirect method used to calculate cash flow from operating activities?

1 a. How can you tell if the indirect method was used or not?

2. What is the company;s total cash flow for 2013?

2a. Was it cash inflow or cash outflow?

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS 2012 2011 Year Ended December 31 (In millions) OPERATING ACTIMTIES Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity income) loss net of dividends Foreign currency adjustments Significant (gains) losses on sales of assets - net Other operating charges Other items Net change in operating assets and liabilities 2013 $ 8,626 $ 9,086 $ 8,646 1,954 1,982 1,977 227 648 (201) 168 (670) 465 234 1,035 426) (130) (98) 166 254 (269) 220) (354) (932)(1,080)(1,893) 9,474 10,645 Net cash provided by operating activities INVESTING ACTIVITTES Purchases of investments Procceds from disposals of invcstments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and cquipment Proceeds from disposals of property, plant and equipment Other investing activities 10,542 (14,782) (14,824)(4,798) 5,811 7,791 (353)(1,486) 20 12,791 (971) 398 (2,550) (2,780 (2,920) 872 143 (268) Net cash provided by (used in) investing activities(4,214)(11,404) (303) (145) (2,524) FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities 43,42542,791 27,495 (38,714)(38,573) (22,530) 1,569 1,489 1,328 (4,832)(4,559) (4,513) (4,969)(4,595) (4,300) (3,745) Net cash provided by (used in) financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS(611)(255)(430) CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at beginning of year (2,234) 1,972(4,361) 8.44212,803 4,286 8,517 Balancc at end of ycar $ 10,414 $ 8,442 S 12,803 Refer to Notes to Consolidated Financial Statements,

Solution

1. Was the indirect method used to calculate cash flow from operating activities?

Yes, the company has used indirect method for calculating the cash flow from operating activities .

1 a. How can you tell if the indirect method was used or not?

This method has started with net income and in net income non cash items and changes in current assets and liabilities have been added or deducted as the case may be .

2. What is the company;s total cash flow for 2013?

Total cash flow for 2013 was $1972.

2a. Was it cash inflow or cash outflow?

It was inflow as the total cash and its equivalents have increased during the year.