Coke

Essay specific features

 

Issue:

Business

 

Written by:

Charity H

 

Date added:

March 30, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 429

 

Was viewed:

8930 times

 

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Essay content:

Purchases from Coke account for approximately 35% of Coca-Cola Enterprises' cost-of-goods-sold. If Coca-Cola were to terminate its relationship with CCE, CCE would be out of business. Conversely, if CCE were to go out of business, Coca-Cola would lose its largest bottler and distributor and suffer an immediate drop in revenues and earnings, not to mention a large component of its distribution channel...
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These close relationships suggest that consolidating the two entities would be a more appropriate method of accounting, reflecting the effective control by Coke. Coke actual financial statements are less useful than the financial statements prepared assuming that Coke and CCE are consolidated. When CCE was created in 1986 as a spin-off from Coca- Cola, CCE displayed much lower profit margins and CCE had massive amounts of debt, which was no longer on the books of Coca-Cola...
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