The following information was obtained from the 2010 and 2009 financial statements of The Coca-Cola Company and

Question:

The following information was obtained from the 2010 and 2009 of The Coca-Cola Company and Subsidiaries and PepsiCo, Inc., and Subsidiaries. (Year-ends for PepsiCo are December 25, 2010, and December 26, 2009.) Assume all sales are on credit for both companies.

aDescribed as ''trade accounts receivable, less allowances'' by Coca-Cola.
bDescribed as ''net operating revenues'' by Coca-Cola.
cDescribed as ''cost of sales'' by PepsiCo.
Required
1. Using the information provided, compute the following for each company for 2010:
a. Accounts receivable turnover ratio
b. Number of days' sales in receivables
c. Inventory turnover ratio
d. Number of days' sales in inventory
e. Cash-to-cash operating cycle
2. Comment briefly on the liquidity of each of these two companies.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...