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 roundedamounts reported in their annual reports (amounts in millions).Fiscal Year Ended:Net SalesAccounts ReceivableAllowance for Doubtful AccountsAccounts Receivable, Net of AllowanceReq 1Req 2ARequired: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?Complete this question by entering your answers in the tabs below.Receivables Turnover RatioDays to collectReq 2BX Answer is complete but not entirely correct.Coca-Cola2018$ 31,8603,8904903,40020188.7 x41.6PepsiCoCoca-Cola20179.040.6$ 35,4104,1504803,670Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2018 and 2017. (Use 365 days in ayear. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimalplace. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)Coca-Cola9.1 x40.1 X20172016$ 41,8604,3304703,860PepsiCo9.0 X2018$ 64,6607,2401007,14040.6PepsiCo2017$ 63,5257,1551307,0252016$ 62,8006,8351356,700

The question is related to Ratio Analysis.The speed with which these receivables are collected…

Answered: Coca-Cola and PepsiCo are two of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Softee Sodas and Patterson Beverage Company 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). Softee Sodas Patterson Beverage Company Fiscal Year Ended: 2018 2017 2016 2018 2017 2016 Net Sales $ 42,160 $ 46,840 $ 48,600 $ 85,696 $ 86,240 $ 72,900 Accounts Receivable 4,490 4,810 5,030 8,400 8,310 7,930 Allowance for Doubtful Accounts 640 630 620 100 130 140 Accounts Receivable, Net of Allowance 3,850 4,180 4,410 8,300 8,180 7,790 Required: 1. Calculate the receivables turnover ratios and days to collect for Softee Sodas and Patterson Beverage Company 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…
Lipovetsky Corp. has the following data relating to accounts receivable at the end of the current year: Accounts receivable 900,000 Allowance for doubtful accounts 45,000 Allowance for sales discounts 5,000 Allowance for sales returns 7,500 Allowance for freight 1,500 What is the net realizable value? 959,000 900,000 855,000 841,000
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Compute for the following RED 1. Accounts receivable turnover 2. Average collection period
Question: In 2015, Warehouse 13 had net credit sales of $750,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $16,000. During 2015, $29,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $150,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2015? a) $29,000 b) $31,000 c) $150,000 d) $28,000
Watin Inc's 2015 income statement reported net sales of $5,000,000. Watin's average accounts receivable during 2015 amounted to $450,000. Using 360 days to a year, Watin's: A. Accounts receivable turnover rate is approximately 13.8 times. B. Accounts receivable turnover rate is approximately 1.25 times. C. Average number of days to collect an account receivable is 32 days. D. Accounts receivable turnover rate is approximately 2 times.
4. Assume that the percentage of sales method was used instead by the company and that on December 31st, 2010 5% of 2010 ‘s credit sales are estimated to be uncollectible. Assume Sales for 2010 were 520,000 (60% relates to cash sales) (1) Prepare the Allowance for uncollectible account for 2010, using this method (ii) Prepare the balance sheet extract to show the net realizable value of the Accounts Receivable as at December 31 2010
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7 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19 - credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's bad debts expense that shall be presented in its 2020 statement of financial performance?
es Fizzy Sodas and Hayes Companies 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 2018 $ 40,630 4,410 620 3,790 Fizzy Sodas 2017 $ 45,120 4,710 610 4,100 2016 $ 47,640 4,930 600 4,330 2018 $ 82,416 8,240 100 8,140 Hayes Companies 2017 $82,945 8,150 130 8,020 Required: 1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies 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? 2016 $ 71,470 7,770 140 7,630
The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past due. If annual credit sales are $6 million, what is the company's balance sheet amount in accounts receivable? Multiple Choice O $569,589.04 O $515,342.47 O $279,452.05

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