The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions). Total current assets Total current liabilities Net sales Cost of goods sold Net income Average (net) accounts receivable for the year Average inventories for the year Average total assets Average common stockholders' equity Average current liabilities Average total liabilities Total assets Total liabilities Income taxes Interest expense Net cash provided by operating activities Capital expenditures Cash dividends (a) 1. 2. 3. 4. 5. Current ratio Accounts receivable turnover Average collection period Inventory turnover Days in inventory Coca-Cola Which company is more liquid? $14,190 11,000 24,570 8,950 5,424 2,700 1,790 35,695 18,136 10,655 17,560 38,971 19,072 Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1. Use 365 days for calculation.) 1,630 285 6,586 1,594 3,000 PepsiCo $10,143 Coca-Cola 6,900 34,500 16,146 4,746 3,750 2,070 30,321 11,656 6,972 18,766 31,848 18,444 1,700 318 5,396 1,728 2,232 :1 times days times days PepsiCo :1 times days times days
The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions). Total current assets Total current liabilities Net sales Cost of goods sold Net income Average (net) accounts receivable for the year Average inventories for the year Average total assets Average common stockholders' equity Average current liabilities Average total liabilities Total assets Total liabilities Income taxes Interest expense Net cash provided by operating activities Capital expenditures Cash dividends (a) 1. 2. 3. 4. 5. Current ratio Accounts receivable turnover Average collection period Inventory turnover Days in inventory Coca-Cola Which company is more liquid? $14,190 11,000 24,570 8,950 5,424 2,700 1,790 35,695 18,136 10,655 17,560 38,971 19,072 Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1. Use 365 days for calculation.) 1,630 285 6,586 1,594 3,000 PepsiCo $10,143 Coca-Cola 6,900 34,500 16,146 4,746 3,750 2,070 30,321 11,656 6,972 18,766 31,848 18,444 1,700 318 5,396 1,728 2,232 :1 times days times days PepsiCo :1 times days times days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical
consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions).
Total current assets
Total current liabilities
Net sales
Cost of goods sold
Net income
Average (net) accounts receivable for the year
Average inventories for the year
Average total assets
Average common stockholders' equity
Average current liabilities
Average total liabilities
Total assets
Total liabilities
Income taxes
Interest expense
Net cash provided by operating activities
Capital expenditures
Cash dividends
(a)
1.
2.
3.
4.
5.
Current ratio
Accounts receivable turnover
Average collection period
Inventory turnover
Days in inventory
Coca-Cola
Which company is more liquid?
$14,190
11,000
24,570
8,950
5,424
2,700
1,790
35,695
18,136
10,655
17,560
38,971
19,072
1,630
285
6,586
1,594
3,000
PepsiCo
$10,143
6,900
Coca-Cola
34,500
Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other
answers to 1 decimal place, e.g. 15.1. Use 365 days for calculation.)
16,146
4,746
3,750
2,070
30,321
11,656
6,972
18,766
31,848
18,444
1,700
318
5,396
1,728
2,232
:1
times
days
times
days
PepsiCo
:1
times
days
times
days
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