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) Req 1 Complete this question by entering your answers in the tabs below. Reg 24 Reg 28 Receivables Turnover Ratio Days to collect 2018 $ 31,860 3,890 490 3,400 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? Coca-Cola Coca-Cola 2017 $35,410 PepsiCo 4,150 480 3,670 Coca-Cola Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2018 2017 2016 $ 41,860 PepsiCo 4,330 470 3,860 Reg 2A > 2018 $ 64,660 7,240 100 7,140 PepsiCo 2017 $ 63,525 7,155 130 7,025 2016 $ 62,000 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) Req 1 Complete this question by entering your answers in the tabs below. Reg 24 Reg 28 Receivables Turnover Ratio Days to collect 2018 $ 31,860 3,890 490 3,400 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? Coca-Cola Coca-Cola 2017 $35,410 PepsiCo 4,150 480 3,670 Coca-Cola Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2018 2017 2016 $ 41,860 PepsiCo 4,330 470 3,860 Reg 2A > 2018 $ 64,660 7,240 100 7,140 PepsiCo 2017 $ 63,525 7,155 130 7,025 2016 $ 62,000 6,835 135 6,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
2
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 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
Req 1
Reg 24
Complete this question by entering your answers in the tabs below.
Receivables Turnover Ratio
Days to collect
2018
$ 31,860
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?
Coca-Cola
3,890
490
3,400
PepsiCo
P
Coca-Cola
2017
$ 35,410
4,150
480
3,670
Reg 28
Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. (Use 365 days in at
year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal
place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)
2018
2017
Coca-Cola
2016
$ 41,860
4,330
479
3,860
PepsiCo
2018
$ 64,660
7,240
100
7,140
Req 2A >
PepsiCo
2017
$ 63,525
7,155
130
7,025
2016
$ 62,000
6,835
135
6,700
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