Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they

image text in transcribed
Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Cola Inc. Soda Co. Fiscal Year Ended: Net Sale Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 2015 2014 2013 2015 2014 2013 $33,819 $29,990 $30,944 3,121 $56,838 $42,232 $42,251 4,694 4,458 46 3,793 6,447 142 3,764 53 49 88 68 4,412 3,740 3,072 6,305 4,606 3,696 Required: 1. Calculate the receivables turnover ratios and days to collect for Cola Inc. and Soda Co. for 2015 and 2014. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) Answer is complete but not entirely correct. 2015 2014 Cola Inc. Soda Co. Cola Inc. Soda Co. Receivables Turnover Ratio 8.2 10.2 8.7 9.9 Days to collect 44.5 35.8 42.1 36.5 Prew

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Guide To The Study Of Auditing 1914

Authors: Samuel F. Racine

1st Edition

0266614493, 978-0266614494

More Books

Students also viewed these Accounting questions

Question

List the four elements of descriptive statistical problems.

Answered: 1 week ago

Question

D How will your group react to this revelation?

Answered: 1 week ago