Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that theysell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following informationassumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions).Coca-ColaPepsicoFiscal Year Ended:202020192018202020192018Net Sales$35,944$30,857$24, 288$44,351$39,674$35,337Accounts ReceivableAllowance for Doubtful Accounts3,1613,4082,6703,8043,6903,167575865727166Accounts Receivable, Net of Allowance3,1043,3502,6053,7323,6193,101Required:1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days ayear. Round your intermediate answers and final answers to 1 decimal place.)2020Coca-ColaPepsiCoReceivables turnover ratiotimesdaystimesDays to collectdays< Prev14 of 17Next >ENGUS Save2019Coca-ColaPepsiCoReceivables turnover ratiotimestimesDays to collectdaysdays2. Which of the companies is quicker to convert its receivables into cash?O Coca-ColaO PepsiCo< Prev14 of 17Next >ENGUS

Receivable means debtors and turnover mean how many times in a year credit sales is realized. In…

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 information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions).

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 information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions).

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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The data depicted in the table below were extracted from the annual financial reports of WBE enterprises for the 2021 and 2022 financial years. If all purchases are on credit, calculate the creditors payment period of WBE enterprises for the 2022 financial year. Sales (80% credit sales) Cost of sales Inventories Accounts receivable Accounts payable Cash and cash equivalents Other current liabilities OA. 214 days OB. 163 days OC. 66 days OD. 168 days 2022 R 480 000 264 000 270 000 204 000 177 000 45 750 82 500 2021 R 375 000 192 000 243 000 183 000 165 000 27 300 58 500
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
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