Financials Outcome Paper

Financial Outcomes Paper

Today, Coca-Cola is selling beverages in more than 200 countries and has been recognized instantly as the American brand (Bhasin, 2011). We will look into two different financial initiatives that have determined Coco-Cola’s recent annual reports and other financial statements. Through these two financial initiatives we will compare and contrast the most likely financial outcome envisioned with these financial initiatives, and discuss the financial effect the outcome has on Coca-Cola.

Financial Initiative One

The most important financial initiative for Coca Cola in the past five years is the purchase of Coca-Cola Enterprises Inc.’s in October 2010, including the business deal with Dr. Pepper Snapple group to bottle and distribute some of their products (The Coca-Cola Company, 2013). Even though this financial initiative began in 2010 it still is affecting the company financially today.

The purchase of Coca-Cola Enterprises bottling was an important purchase for Coca Cola because this bottling company is one of the most prominent bottlers in the world (The Coca-Cola Company, 2013). While in the process of closing this business deal Coca Cola was also in the process of reaching a deal with the company Dr. Pepper Snapple Group, Inc. This deal was to distribute Canada Dry in the Northeastern region of America and Canada. Coca Cola paid Dr. Pepper Snapple Group, Inc. a onetime payment of approximately $700 million for the rights to distribute this product. Additionally, Coca Cola contracted to add Dr. Pepper products in Freestyle Coca-Cola machines in selected stores in the United States (The Coca-Cola Company, 2013).

Comparing and contrasting the summary of operations since 2010, the purchase of Coca-Cola Enterprises Inc.’s and the business deal with Dr. Pepper Snapple group, the Coca Cola Company’s net operating revenues steadily has increased with a total of $35,119 in 2010 to $48,017 in 2012. Additionally the net income...