Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that theysell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following roundedamounts reported in their annual reports (amounts in millions).Fiscal Year Ended:Net SalesAccounts ReceivableAllowance for Doubtful AccountsAccounts Receivable, Net of AllowanceReq 1Req 2ARequired:1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017.2-a. Which of the companies was quicker to convert its receivables into cash in 2018?2-b. Which of the companies was quicker to convert its receivables into cash in 2017?Complete this question by entering your answers in the tabs below.Receivables Turnover RatioDays to collectReq 2BX Answer is complete but not entirely correct.Coca-Cola2018$ 31,8603,8904903,40020188.7 x41.6PepsiCoCoca-Cola20179.040.6$ 35,4104,1504803,670Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. (Use 365 days in ayear. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimalplace. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)Coca-Cola9.1 x40.1 X20172016$ 41,8604,3304703,860PepsiCo9.0 X2018$ 64,6607,2401007,14040.6PepsiCo2017$ 63,5257,1551307,0252016$ 62,8006,8351356,700

The question is related to Ratio Analysis.The speed with which these receivables are collected…

Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts. Accounts Receivable, Net of Allowance 2018 $ 31,860 3,890 490 3,400 Coca-Cola 2017 $ 35,410 4,150 480 3,670 2016 $41,860 4,330 470 3,860 Required: 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2018 $ 64,660 7,240 100 7,140 PepsiCo 2017 $ 63,525 7,155 130 7,025 2016 $ 62,800 6,835 135 6,700

Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts. Accounts Receivable, Net of Allowance 2018 $ 31,860 3,890 490 3,400 Coca-Cola 2017 $ 35,410 4,150 480 3,670 2016 $41,860 4,330 470 3,860 Required: 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2018 $ 64,660 7,240 100 7,140 PepsiCo 2017 $ 63,525 7,155 130 7,025 2016 $ 62,800 6,835 135 6,700

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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