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Coca Cola

Forecasted Income Statement Forecast the income statement (Net Operating Revenues through Net Income Attributable to Shareowners) for the next five years starting with revenues based on the following estimates of growth: Y1 5%, Y2 5%, Y3 4%, Y4 4% & Y5 3%. Note: The format of the forecasted income statement should include the same line items as the 10-K Income Statement tab.

The following items should be forecast as the average percentage of historical revenues for the most recent 3 years: Cost of goods sold; Selling, general and administrative expenses; and Other operating charges.

Forecast the following as no change: Interest income; Equity income (loss) net; Other income (loss) net; and Net income (Loss) attributable to noncontrolling interest.

Forecast interest expense for each year as three percent (3%) of the total outstanding interest-bearing debt forecast per the Balance Sheet.

Forecast income taxes using the tax rate equal to the sum of statutory US federal tax rate and state & local income tax rate from footnotes.

Forecasted Balance Sheet Forecast the five year forward balance sheet for the subject valuation company. Note: The format of the forecasted balance sheet should include the same line items as the 10-K Balance Sheet tab.

Forecast the following items as no change: Short term investments; Marketable securities; Equity method investments; Other investments; Other noncurrent assets; Other noncurrent liabilities; Trademarks; Goodwill; Loans and notes payable; Common stock; Capital surplus; Accumulated other comprehensive income (loss) and Equity Attributable to Noncontrolling Interests.

Forecast the following as the average historical percent of revenues for the most recent 2 year period (2022 & 2021): Trade accounts receivable; Inventories; Prepaid expenses and other current assets; Accounts payable and accrued expenses; and Accrued income taxes.

Forecast PP&E - net by calculating capex as the average of historical Purchases of PPE as a percent of revenue for the most recent 3 years (2019-2021) from the Statements of Cash Flows. Forecast depreciation expense as the historical average percent of revenues for the most recent 3 years (Note: This should not include Amortization - use Depreciation expense, including the depreciation expense of assets under finance leases)

Forecast other intangible assets by reducing the balance per the projected amortization expense for definite-lived intangible assets for the next five years

Forecast long-term debt according to the maturities schedule per footnotes and assume no additional debt matures beyond the schedule, if needed. Assume no issuances of additional debt. Assume no additional repayments of debt other than maturities per schedule.

Forecast dividends paid for each of the five years using the same payout ratio as 2022 (calculate based on dividends paid and NI to Coca-Cola shareholders).

Forecast no additional treasury stock purchases for the five year projection period

Forecast any remaining line items as a percent of historical revenue for 2022

Once the balance sheet is complete, insert a comment in the cash and equivalents balance each year to assess if the cash balance is normal:

i. If your determination is normal, support with reason. ii. If your determination is not normal, identify potential measures you would take to rectify the surplus or shortfall. Note: Do not make any adjustments to the balance sheet.

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