Using cash flow information-The Coca-Cola Company Following are comparative statements of cash flows, as reported by The Coca-Cola Company in its 2008 annual
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THE COCA-COLA COMPANY AND SUBSIDIARIES
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Consolidated Statements of Cash Flows
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Year Ended December 31 (in millions)
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2008
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2007
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2006
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Operating Activities (details omitted)
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Net cash provided by operating activities
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$ 7,571
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$ 7,150
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$ 5,957
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Investing Activities
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Acquisitions and investments, principally beverage
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and bottling companies and trademarks
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(759)
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(5,653)
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(901)
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Purchases of other investments
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(240)
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(99)
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(82)
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Proceeds from disposals of bottling companies
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and other investments
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479
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448
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640
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Purchases of property, plant, and equipment
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(1,968)
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(1,648)
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(1,407)
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Proceeds from disposals of property, plant,
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and equipment
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129
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239
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112
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Other investing activities
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(4)
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(6)
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(62)
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Net cash used in investing activities
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(2,363)
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(6,719)
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(1,700)
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Financing Activities
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Issuances of debt
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4,337
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9,979
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617
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Payments of debt
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(4,308)
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(5,638)
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(2,021)
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Issuances of stock
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586
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1,619
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148
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Purchases of stock for treasury
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(1,079)
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(1,838)
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(2,416)
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Dividends
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(3,521)
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(3,149)
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(2,911)
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Net cash provided by (used in) financing activities
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(3,985)
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973
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$ (6,583)
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Effect of Exchange Rate Changes on
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Cash and Cash Equivalents
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(615)
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249
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65
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Cash and Cash Equivalents
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Net increase (decrease) during the year
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608
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1,653
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(2,261)
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Balance at beginning of the year
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4,093
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2,440
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4,701
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Balance at end of year
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$ 4,701
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$ 4,093
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$ 2,440
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Required:
a. Briefly review the consolidated statements of cash flows, and then provide an overall evaluation of the "big picture" during the three years presented for Coca-Cola. Have operating cash flows been sufficient to meet investing needs and to pay dividends? b. Were there significant changes to any of the specific line-item details that you think would require further explanation or analysis?