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I just got around to looking at Coca Cola's(NYSE:KO) '98 Ann Rpt and was surprised to see the S-T Debt up over 66%. If this has already been discussed, please point me in the right direction of the discussion.

It appears to me that applying the new Cash/Debt Ratio to KO's #s would place KO outside of the RM parameters; and while the the new Flowie #s are still within the parameters, they're not as pristine as they were under the old Flowie.

Does this mean that all those bears have been right about KO all this time and that KO is no longer an appropriate RM for beginners wanting to get started on a RM portfolio??? Does anyone believe that KO's cash flow will not be able to service their S-T Debt? Would a sudden economic down turn place KO in "real trouble"? Is the new treatment of debt, in the above mentioned ratios, inappropriate in this instance?

I'd appreciate All Foolish thoughts and comments.


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