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 information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: Coca-Cola PepsiCo 2020 2019 2018 2020 2019 2018 $33,184 $34,857 $24,988 $47,751 $42,074 3,131 64 3,353 65 2,740 72 3,874 79 3,760 78 $36,037 3,237 73 3,067 3,288 2,668 3,795 3,682 3,164 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days a year. Round your intermediate answers and final answers to 1 decimal place.) 2020 Coca-Cola PepsiCo Receivables turnover ratio times times Days to collect days days 2019 Receivables turnover ratio Days to collect Coca-Cola PepsiCo times times days days Assessment Tool iFrame
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 information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: Coca-Cola PepsiCo 2020 2019 2018 2020 2019 2018 $33,184 $34,857 $24,988 $47,751 $42,074 3,131 64 3,353 65 2,740 72 3,874 79 3,760 78 $36,037 3,237 73 3,067 3,288 2,668 3,795 3,682 3,164 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days a year. Round your intermediate answers and final answers to 1 decimal place.) 2020 Coca-Cola PepsiCo Receivables turnover ratio times times Days to collect days days 2019 Receivables turnover ratio Days to collect Coca-Cola PepsiCo times times days days Assessment Tool iFrame
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 information
assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions).
Fiscal Year Ended:
Net Sales
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Required:
Coca-Cola
PepsiCo
2020
2019
2018
2020
2019
2018
$33,184
$34,857
$24,988
$47,751
$42,074
$36,037
3,131
64
3,353
65
2,740
72
3,874
79
3,760
78
3,237
73
3,067
3,288
2,668
3,795
3,682
3,164
1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days a
year. Round your intermediate answers and final answers to 1 decimal place.)
2020
Coca-Cola
PepsiCo
Receivables turnover ratio
times
times
Days to collect
days
days
2019
Receivables turnover ratio
Days to collect
Coca-Cola
PepsiCo
times
times
days
days
Assessment Tool iFrame
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