PepsiCo, Inc.s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented
Question:
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.
Instructions
(a) Based on the information in these financial statements, compute the following 2011 ratios for each company. (Assume all sales are credit sales and that PepsiCo's receivables on its balance sheet are all trade receivables.)
(1) Accounts receivable turnover.
(2) Average collection period for receivables.
(b) What conclusions about managing accounts receivable can you draw from these data?
Step by Step Answer:
a 1 The accounts receivable turnover ratio for PepsiCo in 2011 is calculated as follows Accounts Receivable Turnover Net Credit Sales Average Accounts Receivable 66477 million 3919 million 3967 millio...View the full answer
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
