**Receivables Management Analysis for Softee Sodas and Patterson Beverage Company**Softee Sodas and Patterson Beverage Company are two of the leading global beverage companies renowned for their products and receivables management practices. To assess their proficiency in collecting credit sales, we examine their annual reports, focusing on rounded amounts provided in millions.### Annual Financial Data:**Fiscal Year Ended:**- **2018, 2017, 2016****Softee Sodas:**- **Net Sales:** - 2018: $42,160 - 2017: $46,840 - 2016: $48,600- **Accounts Receivable:** - 2018: 4,490 - 2017: 4,810 - 2016: 5,030- **Allowance for Doubtful Accounts:** - 2018: 640 - 2017: 630 - 2016: 620- **Accounts Receivable, Net of Allowance:** - 2018: 3,850 - 2017: 4,180 - 2016: 4,410**Patterson Beverage Company:**- **Net Sales:** - 2018: $85,696 - 2017: $86,240 - 2016: $72,900- **Accounts Receivable:** - 2018: 8,400 - 2017: 8,310 - 2016: 7,930- **Allowance for Doubtful Accounts:** - 2018: 100 - 2017: 130 - 2016: 140- **Accounts Receivable, Net of Allowance:** - 2018: 8,300 - 2017: 8,180 - 2016: 7,790### Analytical Tasks:1. **Calculate Receivables Turnover Ratios and Days to Collect for 2018 and 2017.** 2. **Determine the Quicker Conversion to Cash:** - **2-a:** Identify which company was quicker in 2018. - **2-b:** Identify which company was quicker in

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Softee Sodas and Patterson Beverage Company 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). Softee Sodas Patterson Beverage Company Fiscal Year Ended: 2018 2017 2016 2018 2017 2016 Net Sales $ 42,160 $ 46,840 $ 48,600 $ 85,696 $ 86,240 $ 72,900 Accounts Receivable 4,490 4,810 5,030 8,400 8,310 7,930 Allowance for Doubtful Accounts 640 630 620 100 130 140 Accounts Receivable, Net of Allowance 3,850 4,180 4,410 8,300 8,180 7,790 Required: 1. Calculate the receivables turnover ratios and days to collect for Softee Sodas and Patterson Beverage Company 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?

Softee Sodas and Patterson Beverage Company 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). Softee Sodas Patterson Beverage Company Fiscal Year Ended: 2018 2017 2016 2018 2017 2016 Net Sales $ 42,160 $ 46,840 $ 48,600 $ 85,696 $ 86,240 $ 72,900 Accounts Receivable 4,490 4,810 5,030 8,400 8,310 7,930 Allowance for Doubtful Accounts 640 630 620 100 130 140 Accounts Receivable, Net of Allowance 3,850 4,180 4,410 8,300 8,180 7,790 Required: 1. Calculate the receivables turnover ratios and days to collect for Softee Sodas and Patterson Beverage Company 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Number 1
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