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Coca Cola Enterprises

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Financial Health Analysis

Financial Health Analysis
Although there are many important aspects of a business entity in respect to its financial health and sustainability, the annual report is essential to providing a snap shot into the businesses financials. There are many sections developed within an annual report, however, the income statement, as well as the balance sheet are critical pieces of the report.
Among the various financial reports required by the Sarbanes-Oxley Act of 2002 which "requires companies to establish and maintain internal controls" including the balance sheet which "presents a picture of what a business owns and what it owes" (Kimmel, Weygandt, & Kieso, 2011, p. 11) thus, the annual report can prove critical to an investor.
Upon reviewing an organizations balance sheet, there are two separate sections in respect to assets. The section referred to as current assets includes all items that “the company expects to convert to cash or use within one year” such as; cash, inventory items and investments. The term total assets on the balance sheet refers to everything the company owns including intangible assets which are “assets that lack physical substance, but are valuable to the company". According to the annual report retrieved from (Coca-Cola Enterprises, 01/1) the total current assets of Coca-Cola Enterprises at the end of the financial reporting period of 2013 are $2,568.00 (In millions) Which depicts a decrease in current assets from 2012 whereas the report shows $2,762.00. At the end of 2013 Coca-Cola Enterprises reported $9,525.00 (in millions) of total assets, compared to $9,510.00 (in millions) at the end of 2012. The inclusion of intangible assets hinges on "the evidence of relation between the immaterial expenditure and the future profitability of the firm, including the realization of future benefits" (Brahim

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