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 $18,071.3 $15,638 Total current liabilities 13,901 8,936 Net sales 30,994 45,440 Cost of goods sold 11.274.6 20,075 Net income 6,351 6,134 Average (net) accounts receivable for the year 3,604 4,834 Average inventories for the year 2,451 2,750 Average total assets 44,775 38,101 Average common stockholders' equity 22,816 14,736 Average current liabilities 13,535 8,952 Average total liabilities 22,140 23,646 Total assets 48,851 40,028 Total liabilities 21,983 22,015 Income taxes 2,220 2.280 Interest expense 535 577 Net cash provided by operating activities 8,366 6,976 Capital expenditures 2,173 2,308 Cash dividends 3,980 2,912 (a1) Your answer is correct. Compute the following liquidity ratios for the two competitors. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1.) Coca-Cola PepsiCo (1) Current ratio 1.3 :1 1.75 :1 (2) Accounts receivable turnover 8.59 times 9.4 times (3) Average collection period 42.49 days 38.82 days (4) Inventory turnover 4.6 times 7.3 times (5) Days in inventory 79.34 days 50 days Your answer is correct. Compute the following solvency ratios for the two competitors. (Round times interest earned to 1 decimal place, e.g. 15.2 and other answers to 0 decimal places, e.g. 15.) Coca-Cola PepsiCo (1) Debt to assets ratio 45 % 57.14 % (2) Times interest earned 17 times 15.6 times (3) Free cash flow $ 2213 1756 X Your answer is incorrect. Compute the following profitability ratios for the two competitors. (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 63.6 % % (2) Asset turnover times times TA DOME (3) Return on assets % % (4) Return on common stockholders' equity % %