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 reported in their 2010, 2009, and 2008 annual reports (amounts in millions).

Required:
1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2010 and 2009. (Round to one decimal place.)
2. Which of the companies is quicker to convert its receivables into cash?

Transcribed Image Text:

Coca-Cola PepsiCo Fiscal Year Ended: Net Sales Accounts Receivable llowance for Doubtful Accounts Accounts Receivable, Net of Allowance443 2010 2009 535,119 $30,990 3,813 2008 31,94 3,141 51 2010 57,838 6,467 144 2009 4,714 323 4624 371 2008 478 48 3,784 70 3758 3,0906