The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions).

Coca-Cola PepsiCo Total current assets $15,451 $11,071 Total current liabilities 12,121 7,656 Net sales 27,290 38,032 Cost of goods sold 9,788 17,699 Net income 6,024 5,246 Average (net) accounts receivable for the year 3,024 4,054 Average inventories for the year 1,971 2,270 Average total assets 39,195 33,321 Average common stockholders' equity 19,936 12,856 Average current liabilities 11,755 7,672 Average total liabilities 19,360 20,666 Total assets 42,871 35,048 Total liabilities 20,972 20,244 Income taxes 1,800 1,800 Interest expense 310 349 Net cash provided by operating activities 7,186 5,996 Capital expenditures 1,754 1,828 Cash dividends 3,300 2,432 (a) Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1. Use 365 days for calculation.) Coca-Cola PepsiCo (1) Current ratio :1 :1 (2) Accounts receivable turnover times times (3) Average collection period days days (4) Inventory turnover times times (5) Days in inventory days days Which company is more liquid? (b) Compute the following solvency ratios for the two companies. (Round times interest earned to 1 decimal place, e.g. 15.2 and percentages to O decimal places, e.g. 15%.) Coca-Cola PepsiCo (1) Debt to assets ratio % % (2) Times interest earned times times (3) Free cash flow $ $ Which company is more solvent? (c) Compute the following profitability ratios for the two companies. (Round percentages to 1 decimal place, e.g. 15.2% and all other answers to 2 decimal places, e.g. 15.25.) Coca-Cola PepsiCo (1) Profit margin % % ( (2) Asset turnover times times (3) Return on assets % % (4) Return on common stockholders' equity % % Which company has lower profit margin? Which company has a higher profitability overall