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 2013 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?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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