Analyzing Accounts Receivable The following information is taken from the annual report of The Coca-Cola Company: (amounts in millions) Year 1 Net sales Accounts receivable (net) Year 2 $45,998 $44,294 4,466 3,941 Calculate the receivable turnover ratio and the receivable collection period for Year 1 and Year 2. Round your answer to two decimal places. Year 1 Year 2 Receivable turnover ratio Receivable collection period Additional cash flow $ 10.3 ✓ 35.44 days How much additional cash flow from operations could Coca-Cola generate in Year 2 if it could reduce its receivable collection period to just 30 days? Round your final answer to the nearest million dollar. Year 2 11.24 ✓ 32.47✔ days 0 x million
Analyzing Accounts Receivable The following information is taken from the annual report of The Coca-Cola Company: (amounts in millions) Year 1 Net sales Accounts receivable (net) Year 2 $45,998 $44,294 4,466 3,941 Calculate the receivable turnover ratio and the receivable collection period for Year 1 and Year 2. Round your answer to two decimal places. Year 1 Year 2 Receivable turnover ratio Receivable collection period Additional cash flow $ 10.3 ✓ 35.44 days How much additional cash flow from operations could Coca-Cola generate in Year 2 if it could reduce its receivable collection period to just 30 days? Round your final answer to the nearest million dollar. Year 2 11.24 ✓ 32.47✔ days 0 x million
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
Related questions
Topic Video
Question
![Analyzing Accounts Receivable
The following information is taken from the annual report of The Coca-Cola Company:
(amounts in millions) Year 1 Year 2
Net sales
$45,998 $44,294
Accounts receivable (net)
4,466 3,941
Calculate the receivable turnover ratio and the receivable collection period for Year 1 and Year 2. Round your answer to two decimal places.
Year 1
Year 2
Receivable turnover ratio
Receivable collection period
10.3
35.44 days
Additional cash flow $
How much additional cash flow from operations could Coca-Cola generate in Year 2 if it could reduce its receivable collection period to just 30 days?
Round your final answer to the nearest million dollar.
Year 2
11.24
32.47 days
0x million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1907532-81d5-482f-bf55-c99b2b8e887e%2F13b0856f-6c6e-4a77-8e10-c06fbe052696%2F7zp0rti_processed.png&w=3840&q=75)
Transcribed Image Text:Analyzing Accounts Receivable
The following information is taken from the annual report of The Coca-Cola Company:
(amounts in millions) Year 1 Year 2
Net sales
$45,998 $44,294
Accounts receivable (net)
4,466 3,941
Calculate the receivable turnover ratio and the receivable collection period for Year 1 and Year 2. Round your answer to two decimal places.
Year 1
Year 2
Receivable turnover ratio
Receivable collection period
10.3
35.44 days
Additional cash flow $
How much additional cash flow from operations could Coca-Cola generate in Year 2 if it could reduce its receivable collection period to just 30 days?
Round your final answer to the nearest million dollar.
Year 2
11.24
32.47 days
0x million
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning