a. Calculate the cash conversion cycle, and interpret the numbers

INCOME STATEMENT:

COCA-COLA

Sales 23,104

Cost of goods sold 9,195

PEPSI

Sales 32,562

Cost of goods sold 13,176

BALANCE SHEET:

COCA-COLA

Assets

Cash and Cash Equivalents 4,701

Short-term Investments 66

Accounts Receivables 2,281

Inventory 1,424

Other Current Assets 1,778

Total Current Assets 10,250

Total Assets 29,427

PEPSI

Assets

Cash and Cash Equivalents 1,716

Short-term Investments 3,166

Accounts Receivables 3,261

Inventory 1,693

Other Current Assets 618

Total Current Assets 10,454

Total Assets 31,727

Financed by:

COCA-COLA

Accounts Payable 5,290

Short-term debt 4,546

Other Current Liabilities 0

Total Current Liabilities 9,836

PEPSI

Accounts Payable 5,357

Short-term debt 2,889

Other Current Liabilities 1,160

Total Current Liabilities 9,406