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Hello everyone Pepsi co revenue:$86,392 Accounts receivable: 10,163 (2022):8,920(2021) Average AR: 10,163(2022)+8,680(2021) 18,843/2= $9421.5 Turnover ratio: 86,392/$9421.5 = 9.17 Average collection days: 365/9.17= 39.8 Amazon revenue: 513,983 M Accounts Receivable: $32,891 M (2021) 42,360 M (2022) Average Accounts Receivable: 32,891 + 42,360/2) = 37,625 Turnover Ratio: 513,983 (32,891 +42,360/2)= 13.7 Average Collection Period: 365/13.7 = 26.6 days The turnover rate for PepsiCo would be below 10 so it would be labeled as sufficient. The turnover rate for Amazon would fall lower so it wouldn't be sufficient enough. A good collection period would be between 30 and 60 days. So Both companies would fall in good rates. Both companies ratios dropped during 2022 and the ratios aren't equal either and the ratio will be based on products. so Amazon has a much bigger selection of items than Pepsi. And Pepsi has a smaller turnover ratio. But Both pepsi and Amazon could do things to increase their cash flow as well.

Hello everyone Pepsi co revenue:$86,392 Accounts receivable: 10,163 (2022):8,920(2021) Average AR: 10,163(2022)+8,680(2021) 18,843/2= $9421.5 Turnover ratio: 86,392/$9421.5 = 9.17 Average collection days: 365/9.17= 39.8 Amazon revenue: 513,983 M Accounts Receivable: $32,891 M (2021) 42,360 M (2022) Average Accounts Receivable: 32,891 + 42,360/2) = 37,625 Turnover Ratio: 513,983 (32,891 +42,360/2)= 13.7 Average Collection Period: 365/13.7 = 26.6 days The turnover rate for PepsiCo would be below 10 so it would be labeled as sufficient. The turnover rate for Amazon would fall lower so it wouldn't be sufficient enough. A good collection period would be between 30 and 60 days. So Both companies would fall in good rates. Both companies ratios dropped during 2022 and the ratios aren't equal either and the ratio will be based on products. so Amazon has a much bigger selection of items than Pepsi. And Pepsi has a smaller turnover ratio. But Both pepsi and Amazon could do things to increase their cash flow as well.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello everyone Pepsi co revenue:$86,392 Accounts receivable: 10,163 (2022):8,920(2021) Average AR: 10,163(2022)+8,680(2021) 18,843/2= $9421.5 Turnover ratio: 86,392/$9421.5 = 9.17 Average collection days: 365/9.17= 39.8 Amazon revenue: 513,983 M Accounts Receivable: $32,891 M (2021) 42,360 M (2022) Average Accounts Receivable: 32,891 + 42,360/2) = 37,625 Turnover Ratio: 513,983 (32,891 +42,360/2)= 13.7 Average Collection Period: 365/13.7 = 26.6 days The turnover rate for PepsiCo would be below 10 so it would be labeled as sufficient. The turnover rate for Amazon would fall lower so it wouldn't be sufficient enough. A good collection period would be between 30 and 60 days. So Both companies would fall in good rates. Both companies ratios dropped during 2022 and the ratios aren't equal either and the ratio will be based on products. so Amazon has a much bigger selection of items than Pepsi. And Pepsi has a smaller turnover ratio. But Both pepsi and Amazon could do things to increase their cash flow as well.
Transcribed Image Text:Hello everyone Pepsi co revenue:$86,392 Accounts receivable: 10,163 (2022):8,920(2021) Average AR: 10,163(2022)+8,680(2021) 18,843/2= $9421.5 Turnover ratio: 86,392/$9421.5 = 9.17 Average collection days: 365/9.17= 39.8 Amazon revenue: 513,983 M Accounts Receivable: $32,891 M (2021) 42,360 M (2022) Average Accounts Receivable: 32,891 + 42,360/2) = 37,625 Turnover Ratio: 513,983 (32,891 +42,360/2)= 13.7 Average Collection Period: 365/13.7 = 26.6 days The turnover rate for PepsiCo would be below 10 so it would be labeled as sufficient. The turnover rate for Amazon would fall lower so it wouldn't be sufficient enough. A good collection period would be between 30 and 60 days. So Both companies would fall in good rates. Both companies ratios dropped during 2022 and the ratios aren't equal either and the ratio will be based on products. so Amazon has a much bigger selection of items than Pepsi. And Pepsi has a smaller turnover ratio. But Both pepsi and Amazon could do things to increase their cash flow as well.
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