Cover page, table of contents, and report objective
In a formatted financial report, the following sections must be included: a cover page that
includes the company name and year reported (excluding your name), the content
contained in your report (i.e. the table of contents, which should identify all major
sections 2-6 listed below), and one paragraph detailing the purpose of the report (i.e. the
objective, explaining the purpose and ratio data to be analyzed).
Section II: Provide a summary of the organization’s background, mission, and product lines
The summary section of the report asks you to describe Soda Pop Organics, Inc. You
will explain the ratio data to be presented as well as the industry and product variety sold
to complete this summary, you will use the spreadsheet and PowerPoint presentation provided to you.
Section III: Provide a summary of the organization’s outlook and future investments
The summary of the organization’s future outlook should identify products in
development, the organizational strategy for future growth, and any new markets or
acquisition of factories, farms, etc. that the organization has in development and which
are identified in the PowerPoint presentation.
Section IV: Provide a summary of revenue, assets, liabilities, and shareholder’s equity
Using the supplied financial reports, create a one-page summary of total revenue,
assets, liabilities, and shareholder’s equity. This information should be presented with a
short explanation of each category and what the numbers mean from the perspective of
major stakeholders such as investors, shareholders, and senior management.
Section V: Calculate the liquidity ratios, financial leverage ratios, and profitability ratios
Use the financial statements Excel file in order to calculate the following ratios
Liquidity Ratios: Financial Leverage Ratios: Profitability Ratios:
‐ Current Ratio - Debt Ratio -Gross Profit Margin
‐ Quick Ratio - Debt-to-Equity Ratio - Return on Assets
‐ Cash Ratio - Return on Equity
Section VI: Provide an observations section that addresses the following three content areas
1. Explain the financial ratios by detailing the relevancy, interpretation, and what
each ratio means relative to the financial health, investor perspective, and
stakeholder perspective.
2. How does Soda Pop Organic, Inc. financial strategy encourage future growth?
Discuss any issues or challenges in the organization’s financial health and how
this might impact future growth.
3. What recommendations would you make to Soda Pop Organics, Inc. for the
future? What information would encourage or discourage investment from
outside sources?
Statement of Cash Flows
Soda Pop Organics, Inc.
For the Year Ended December 31, 2013
(In Millions)
Operating Activities
Consolidated net income
Depreciation and amoritization
Stock-based compensation expense
Deferred income tax
Equity (income) loss - net of dividends
Foreign currency adjustments
Significant (gains) losses on sales of assets - net
Other operating charges
Other items
Net change in operating assets and liabilities
$7,810
$1,745
$219
550
(301)
195
(785)
568
175
(1,052)
Net cash provided by operating activities
$9,124
Investing Activities
Purchases of investment
Proceeds from disposals of investments
Acquisitions of businesses, equity method investments
Proceeds from disposals of businesses, equity method
Purchases of property, plant and equipment
Proceeds from disposal of propert, plant and equipment
Other investing activities
($15,852)
11,852
(475)
257
(1,250)
498
(652)
Net cash provided (used) by investing activities
($5,622)
Financing Activities
Issuances of debt
Payments of debt
Issuances of stock
Purchases of stock for treasury
Dividends
Other financing activities
Net cash provided (used) in financing activities
Increase (decrease) in cash during the period
Cash balance at the beginning of the period
Cash balance at the end of the period
$35,625
(28,625)
1,254
(3,625)
(3,325)
12
$1,316
$4,818
7,042
$11,860
Balance Sheet
Soda Pop Organics, Inc.
December 31, 2013
(In Millions)
ASSETS
Current Assets
Cash and cash equivilents
Short-term investments
Marketable securities
Trade accounts recieveables
Inventories
Prepaid expenses
Assets held for sale
12650
4517
1947
2973
2798
1986
-
Total Curent Assets
Equity method investments
Investments, bottling/farming companies
Other Assets
Property, plant, and equipment - net
Trademarks with indefinite lives
Bottlers' franchise risghts with indefinite lives
Goodwill
Other intangible assets
Total Net Fixed Assets
9293
1008
3761
13967
5589
6219
11219
987
52043
Total Assets
LIABILITIES
Current Liabilities
Accounts payable and accrued expenses
Loans and notes payable
Current maturities of long-term debt
Accrued income taxes
8567
15201
954
219
Total Current Liabilities
LONG-TERM LIABILITIES
Long-term debt
Other liabiities
Deferred income taxes
Deferred income taxes
17651
2784
4192
425
Total Long-term Liabilities
SHAREHOLDER'S EQUITY
Equity Attributable to Sharewoners
28704
Equity attributable to noncontrolling interests
Total Shareholders' Equity
TOTAL LIABILITIES & EQUITY
217
28921
26871
78914
24941
25052
78914
Income Stat
Soda Pop Organi
For Period Ended Decemb
(In Millions)
NET OPERATING REVENUES
Cost of goods sold
GROSS PROFIT
Selling, general, and administrative expenses
Other operating charges
OPERATING INCOME
Interest income
Interest expense
Equity income (loss) - net
Other income (loss) - net
INCOME BEFORE INCOME TAXES
Income Taxes
CONSOLIDATED NET INCOME
Less Net income attributable to noncontrolling interests
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE SODA POP
BASIC NET INCOME PER SHARE
DILUTED NET INCOME PER SHARE
AVERAGE SHARES OUTSTANDING
Effect of dilutive securities
AVERAGE SHARES OUTSTANDING ASSUMING D
Income Statement
Soda Pop Organics, Inc.
For Period Ended December 31, 2013
(In Millions)
NET OPERATING REVENUES
Cost of goods sold
GROSS PROFIT
Selling, general, and administrative expenses
Other operating charges
OPERATING INCOME
Interest income
Interest expense
Equity income (loss) - net
Other income (loss) - net
INCOME BEFORE INCOME TAXES
Income Taxes
CONSOLIDATED NET INCOME
Less Net income attributable to noncontrolling interests
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE SODA POP ORGANICS COMPANY
BASIC NET INCOME PER SHARE
DILUTED NET INCOME PER SHARE
AVERAGE SHARES OUTSTANDING
Effect of dilutive securities
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION
$43,854
17,211
$26,643
16549
671
$9,423
425
-395
514
497
$10,464
2654
$7,810
34
$7,776
$1.98
$1.95
3924
62
3986
SODA POP ORGANICS, INC.
2013 ANNUAL REPORT
COMPANY PROFILE
Soda Pop Organics, Inc. is a soft drink company,
started in 2001, with headquarters located in
Washougal, Washington, USA. Organics currently
employs over 120,000 people, invests in over 1,550
locally owned organic/hydroponic farms, and owns
130 sugar cane farms that grow and process only
organic sugar cane products.
COMPANY MISSION
The mission of Soda Pop Organics, Inc. is to offer healthy, plant-based, soft drink
products from sustainable farming activities made with only the most
wholesome ingredients. We strive to uphold this commitment through
investment in family-owned and operated farms throughout the world, with
substantial investments focused on self-sustaining farms. We build relationships
with local farmers, community leaders, and investment companies so that we
can offer those communities in which we operate a holistic understanding of our
products. Our mission goes well beyond sales and profits; we strive to positively
impact the local job market and environment.
COMPANY BACKGROUND
Soda Pop Organics, Inc. began as a local produce stand in Washington. Local farmers of fruits and vegetables
created a cooperative agreement to equally share production, bottling costs, and revenue. The revenue obtained
by the farmers allowed them to increase their growing area, purchase sustainable farming equipment, and invest
in other local farms to increase ownership within the company. As the value of the soda production increased,
Organics became incorporated and was eventually traded on the US Stock Exchange in 2005.
Today, Organics has over 20 products in development and competes with some of the most recognized soda
manufacturers in the world. In addition, Organics has made substantial financial commitments to the
sustainability movement of local farmers. They do this through local job creation. Organics builds relationships
with the community, local farmers, community leaders, and employees.
We invest in our community, we invest in sustainability, we invest in providing healthy beverages for our
customers.
PRODUCT LINES
Soft Drink Lines:
Organics Fruit Soft Drinks
Herb and Flower Organics Soft Drinks
Organics Tea Infused Soft Drinks
Organics Soda Water Soft Drinks
Flavored Water Lines:
Organics Weight Management Water
Energy Organics Water
Organics Sleep Time Water
Vitamin Organics Supplement Water
Organics Sweet Flower Water
Organics Tea Lines:
Organics Black Tea
Organics Lavender Bloom
Organics Oolong Honeysuckle
Organics White Tea Orange
Organics Green Tea Cinnamon
FUTURE VISION
By the year 2025, Soda Pop Organics, Inc. will deliver, invest, and brand their products in every
major market across the world.
Delivery Systems and Bottling
• Bottling and access to Soda Pop Organics products are major focuses of our research and development
practices. Our drinks are wholesome and provide holistic outcomes for partner communities. Soda Pop
Organics has committed to investing in 25 new bottling and distribution centers both domestically and
internationally by 2025.
Investing in New and Developing Farms
• Soda Pop Organics has invested in developing countries and small village farming activities. By 2025, Organics
will have over 150 international farms that grow organic sugar, organic fruit, and organic tea. This investment
is committed to over $1.5 million dollars per year for the next 12 years.
International Branding
• Branding strategy is key to Soda Pop Organics’ success. By 2025, Soda Pop Organics will have invested $2.5
million per year in an international trademark branding operation. This will yield new investors and capital.
FUTURE ASSETS, EQUITY, AND GROWTH
PROJECTIONS
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2013
2014
2015
Assets
Equity
2016
Growth
2017
COMMON STOCK MARKET PRICES
2013 Market and Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of
Equity Securities
Fourth Quarter
$39.62
Third Quarter
39.25
Second Quarter
41.92
First Quarter
38.95
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