The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies

Question:

The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.

Instructions

Use the companies’ financial information to answer the following questions.

a. What were the cash and cash equivalents reported by Coca-Cola and PepsiCo at the end of 2017? What does each company classify as cash equivalents?

b. What were the accounts receivable (net) for Coca-Cola and PepsiCo at the end of 2017? Which company reports the greater allowance for doubtful accounts (amount and percentage of gross receivable) at the end of 2017?

c. Assuming that all “net operating revenues” (Coca-Cola) and all “net revenues” (PepsiCo) were net credit sales, compute the accounts receivable turnover for 2017 for Coca-Cola and PepsiCo; also compute the days outstanding for receivables. What is your evaluation of the difference?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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