PA8-5 Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4]

Coca-Cola and PepsiCo 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 information reported in their 2010, 2009, and 2008 annual reports (amounts in millions).

	Coca-Cola				PepsiCo
Fiscal Year Ended:	2010	2009	2008		2010	2009	2008
Net Sales	$ 35,119	$ 30,990	$ 31,944		$ 57,838	$ 43,232	$ 43,251
Accounts Receivable	4,478	3,813	3,141		6,467	4,714	3,784
Allowance for Doubtful Accounts	48	55	51		144	90	70
Accounts Receivable, Net of Allowance	4,430	3,758	3,090		6,323	4,624	3,714

Required:
1.	Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2010 and 2009. (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.)