6B-7 (Ssimilar to problem 6B-6) Below is comparative information from the annual reports of The Coca-Cola Company and PepsiCo, Incorporated for the year following the reports refered to in problem 6B-6 above. (All numbers are in $1,000,000 increments.) Item Net Sales Beginning Net Accounts Receivable Ending Net Accounts Receivable Coca-Cola $13,957 $ 1,055 $ 1,210 Pepsi $25,021 $ 1,588 $ 1,883 Required: 1. Calculate the accounts receivable turnover ratio for each company, assuming that all sales are on account. 2. Calculate the collection period for each company. Would you say these two companies are similar with respect to this ratio? Coca-Cola Pepsi Item Net Sales Beginning Net Accounts Receivable Ending Net Accounts Receivable Answer: Accounts receivable turnover ratio Collection period