Accounts Receivable Turnover for Coca-Cola and PepsiCo The following information was summarized from the 2006 annual report. The Coca Cola Company: (In millions) ________________________________________________________________________ Trade accounts receivable, less allowances of $63 and $72, respectively December 31, 2006 $2,587 December 31, 2005 2,281 Net operating revenues for the year ended December 31: 2006 24,088 2005 23,104 The following information was summarized from the 2006 annual report of PepsiCo: (In millions) ________________________________________________________________________ Accounts and notes, receivable, net December 30, 2006 $3,725 December 31, 2005 3,261 Net revenue for the year ended: December 30, 2006 35,137 December 31, 2005 35,562 Required 1. Calculate the accounts receivable turnover ratios for Coca-Cola and PepsiCo for 2006. 2. Calculate the average collection period, in days, for both companies for 2006. Comment on the reasonableness of the collection periods for these companies considering the nature of their business. 3. Which company appears to be performing better? What other information should you consider in determining how these companies are performing