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).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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