Discussion Topic: Annual Reports of the Coca-Cola Company and Wal-Mart

For this week's Discussion, you will review the annual reports of the Coca-Cola Company and Wal-Mart, two of the largest publicly traded firms in America.

Coca-Cola and Wal-Mart Receivable Comparison

Compute and compare the accounts receivable turnover ratios for Coca-Cola and Wal-Mart. Indicate all numbers you used to calculate the ratio.

What constitutes a reasonable accounts receivable turnover ratio? What characteristic(s) of these companies would indicate that these ratios are reasonable?

(Back up your answers with facts and cite website and text references used.)

An article recently appeared in the Wall Street Journal indicating that companies are selling their receivables at a record rate. Why might Coca-Cola and Wal-Mart sell their receivables?

Coca-Cola

Go to http://us.coca-cola.com/ to visit the website. You will need to find the financial information and the annual reports. At the site, rest your mouse over Coke in the USA (top of the page); on the drop-down menu, select About The Coca-Cola Company, then Investors, and finally Financial Reports & Information. Choose the most current Annual Report. Note in the Discussion Board which years information you used. You will need to scroll through the annual report to find the information that you need to answer the questions. Remember what you learned in Accounting I about financial statements to help you find what you need.

Wal-Mart

Go to http://www.walmart.com/ to go to the website. Remember what you have learned in Accounting I about financial statements to help you find what you need.

• Follow the link above to Wal-Marts website.
• Scroll to the bottom of the page.
• Under the Get to know us column, select the link Investors.
• On the left-hand page, Select Annual Reports.
• Select the 2014 Annual Report PDF link.