Assignment-daixieTM为您提供利物浦大学University of LiverpoolINTRODUCTION TO MANAGEMENT ACCOUNTING ACFI102管理会计入门代写代考和辅导服务！
Instructions:
Management accounting is a type of accounting that provides financial and non-financial information to management for the purpose of planning, controlling, and decision-making. The information generated by management accounting is primarily for internal use by managers to make strategic decisions that will benefit the organization. Unlike financial accounting, which focuses on external reporting and compliance, management accounting is geared towards providing timely, relevant, and accurate information to managers within an organization.
The purpose of management accounting is to assist management in making informed decisions that will improve the organization’s performance. Management accounting techniques and tools are used to analyze financial and non-financial information to provide insights into the organization’s operations and performance. This information is then used to develop strategies, set budgets, monitor performance, and make decisions that will optimize the organization’s resources and achieve its goals.
In summary, the purpose of management accounting is to provide relevant and timely information to managers to help them make informed decisions that will improve the organization’s performance. By using management accounting techniques and tools, managers can analyze financial and non-financial data to identify areas for improvement, set goals, and make decisions that will optimize the organization’s resources and achieve its objectives.
Use financial statement information for Coca-Cola to answer parts $a$, $b$ and $c$ of this question.
For this financial data, please see the Income Statement and Balance Sheet (pp. 51-53) from: The Coca-Cola Company. “United States Securities and Exchange Commission Form 10-K.” 27 February 2004. Available at: http://www.coca-cola.com/ (accessed July $31,2004)$
Use financial statement information for Coca-Cola and PepsiCo to answer parts $d$ and e of this question.
For this financial data, please see the Income Statement and Balance Sheet (pp. 58 and 60) from: PepsiCo. “PepsiCo 2003 Annual Report.” 9 February 2004. Available at: http://www.pepsico.com/ (accessed July 31, 2004).
A. Using information from the financial statements for Coca-Cola, compute the current ratio and the quick ratio for 2003 .
Current ratio $=$ current assets $/$ current liabilities $=8,396 / 7,886=1.06$
Quick ratio $=($ cash + receivables $) /$ current liabilities $=(3,362+2,091) / 7,886=0.69$
B. What is your analysis of the short-term liquidity of Coca-Cola?
From the class slides, we know that an adequate current ratio is around 2 . Coca-Cola’s current ratio is well-below that target ratio, therefore the company needs to improve its shortterm liquidity situation. Nevertheless, Coca-Cola still meets the “minimum” current ratio of 1; however, the quick ratio is well-below an optimum ratio of 1 . Given the company’s immense brand power, this might only cause slight concern among analysts and investors, but Coca-Cola’s management should take some actions to solidify its short-term liquidity.
C. Using information from the financial statements for Coca-Cola, compute the interest coverage ratio 2003 .
Interest coverage ratio $=($ Net income + interest expense + tax expense $) /$ interest expense $=$
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(4,347+1,148+178) / 178=31.8
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