OCA-COLA used equity method and cost method (EMI) for investment of its bottling companies. As discussed in class, equity method investment is different from fair value method.  This question explores the practice of EMI accounting. 

1. Does equity method investment and cost method investment help COKE to show better operating performance? Keep in mind that in the Q1-Q8, we have assumed EMI and cost method investment (bottlers) part of operating. Coke relationship to EMI and cost method inv is special since the one product is made by them. Therefore, compared to others, Cokes EMI and cost method inv can be viewed as operating more frequently. Therefore, the assumption is justified. But the reality of it is that COKE has limited influence on the bottlers. In this case, this can be viewed as financial, or at least, it is not part of core activities. Core activities are when you exclude EMI and cost method in operating. 

In sum, compare the results in Q1-Q8 when EMI and cost method inv are not operating, isolate the relevant performance measures of EMI and cost method investment, and assess their impact on operating performance. Show your process clearly. 

2. Should COKE consolidate? This would be complex to analyze, therefore, I am looking for the direction of solutions, suggestions, and approximated results, not full blown solution (which is impossible)