The Following Information Is Available for Some of Coca-Cola's Segments

question 30

Essay

The following information is available for some of Coca-Cola's segments (all amounts are in millions):
$\begin{array}{|l|r|r|r|}\hline& \begin{array}{c}\text { North } \\\text { America }\end{array} & \text { Africa } & \begin{array}{c}\text { Latin } \\\text { America }\end{array} \\\hline \text { Segment sales } & \$ 6,264 & \$ 694 & \$ 2,089 \\\hline \text { Segment operating income } & 1,494 & 224 & 1,033 \\\hline \text { Segment average assets } & 4,869 & 541 & 1,443\\\hline \end{array}$
a. Determine the segment return on assets for each geographic segment
b. Comment on the results. How do the segments compare with respect to profitability?

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Definitions:

Minimum Cash Balance

The smallest amount of cash that a company seeks to maintain in its accounts to ensure financial stability and operational efficiency.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit, yet to be paid.

Accounts Receivable Period

The average number of days it takes for a business to collect payments owed by its customers.

Credit Sales

Sales made by a business for which payment is received at a later date, extending credit to the buyer.