Comparative analysis of receivables and inventories The following information is taken from the annual reports of The Coca-Cola company and PepsiCo, Inc. The two companies are fierce competitors, but they differ in important respects Coca-Cola is more "cola-centric," which means that its core Coke and Diet Coke brands play a more dominant role in the company than Pepsi brand cola does in PepsiCo. Although Coca-Cola is the world leader in soft drinks, by a large margin, PepsiCo is the bigger company because of greater diversification. Both companies sell bottled water and other beverages (e.g., health and drinks), but these products feature more prominently in PepsiCo. Also, PepsiCo is the world leader in salty snacks through its Frito Lay business Coca-Cola $ 4,430 4,920 2,650 3,092 35.119 46,542 12.693 18,216 PepsiCo S6,323 6.912 3,372 3,827 57,838 66,504 26,575 31593 in millions Account receivable, net 31 Dec.2010 Inventories Net revenue Cost of goods sold 31 Dec.2011 31 Dec. 2010 31 Dec 2011 2010 2011 2010 2011 Required For each company, calculate the receivables period, the inventory period, and the length of operating cycle for 2011. Assume that all sales are on credit. a. b. Comment on any differences you observe between the two companies. What reasons can you give for why the companies have different operating cycles