2. Calculate the accounts receivable turnover and the average collection period for both companies for 2020...

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2. Calculate the accounts receivable turnover and the average collection period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate the effectiveness of their accounts receivable collections. Which of the two companies seem to be doing a better job with receivables? How does this collection process affect the overall success of the company? 3. Calculate the inventory turnover and the average sales period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? PEPSICO Consolidated Balance Sheet - $ in Millions 2021 As of the end of 2020 2019 ASSETS Cash and cash equivalents $5,596 $ 8,185 $ 5,509 Short-term Investments 392 1,366 229 Accounts and notes receivable, net 8,680 8,404 7,822 Inventories 4,347 4,172 3,338 Prepaid expenses and other current assets 980 874 747 Disposal Group, Including Discontinued Operation, Assets 1,788 0 0 Assets, Current 21,783 23,001 17,645 Property, Plant and Equipment, net 22,407 21,369 19,305 Amortizable Intangible Assets, net 1,538 1,703 1,433 Goodwill 18,381 18,757 15,501 Indefinite-lived Intangible Assets (Excluding Goodwill) 17,127 17,612 14,610 Equity Method Investments 2,627 2,792 2,683 Deferred Income Tax Assets, Net 4,310 4,372 4,359 Other Assets 4,204 3,312 3,011 Total Assets 92,377 92,918 78,547 LIABILITIES AND EQUITY Short-term debt obligations 4,308 3,780 2,920 Accounts payable and other current liabilities 21,159 19,592 17,541 Disposal Group, Including Discontinued Operation, Liabilities 753 0 0 Liabilities, Current 26,220 23,372 20,461 Long-Term Debt Obligations 36,026 40,370 29,148 Deferred Income Tax Liabilities, Net 4,826 4,284 4,091 Other Liabilities, Noncurrent 9,154 11,340 9,979 Liabilities 76,226 79,366 63,679 Commitments and contingencies Common stock, authorized 3,600 3,600 3,600 Common stock, issued 1,383 1,380 1,391 PepsiCo Common Shareholders' Equity Common stock, par value 12/3 per share (authorized 3,600 shares, issued, net of $23 $ 23 $ 23 Additional Paid in Capital, Common Stock 4,001 Retained Earnings (Accumulated Deficit) 65,165 3,910 63,443 $ 3,886 61,946 Accumulated Other Comprehensive Income (Loss), Net of Tax $ (14,898) $ (15,476) Repurchased common stock, shares 484 487 Treasury Stock, Value $ (38,248) $ (38,446) 476 (36,769) Stockholders' Equity Attributable to Parent Stockholders' Equity Attributable to Noncontrolling Interest 16,043 108 13,454 98 $14,786 Total Equity Liabilities and Equity 16,151 $92,377 13,552 82 14,868 $ 92,918 $ 78,547 PEPSICO Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions Income Statement [Abstract] Net Revenue 12 Months Ended 2021 ###### 2020 2019 Cost of sales Gross profit 37,075 31,797 30,132 42,399 38,575 37,029 Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits income/(expense) Net interest expense and other 31,237 28,495 26,738 11,162 522 10,080 117 10,291 (44) (1,863) (1,128) (935) Income before income taxes 9,821 9,069 9,312 Provision for income taxes 2,142 1,894 1,959 Net income 7,679 7,175 7,353 Less: Net income attributable to noncontrolling interests 61 55 39 Net Income Attributable to PepsiCo $7,618 $7,120 $7,314 Net Income Attributable to PepsiCo per Common Share Basic $5.51 $5.14 $5.23 Diluted $5.49 $5.12 $5.20 Weighted-average common shares outstanding Basic Diluted 1,382 1,385 1,399 1,389 1,392 1,407 COCA-COLA CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions 2021 As of the end of 2020 2019 CURRENT ASSETS Cash and cash equivalents $9,684 $ 6,795 $ 6,480 Short-term investments 1,242 1,771 1,467 Total Cash, Cash Equivalents and Short-Term Investments 10,926 8,566 7,947 Marketable securities 1,699 2,348 3,228 Trade accounts receivable, less allowances of $516 and 3,512 3,144 3,971 $526, respectively Inventories 3,414 3,266 3,379 Prepaid expenses and other current assets 2,994 1,916 1,886 Total Current Assets 22,545 19,240 20,411 Equity method investments 17,598 19,273 19,025 Other investments 818 812 854 Other noncurrent assets 6,731 6,184 6,075 Deferred income tax assets 2,129 2,460 2,412 Property, plant and equipment - net 9,920 10,777 10,838 Trademarks with indefinite lives 14,465 10,395 9,266 Goodwill 19,363 17,506 16,764 Other intangible assets 785 649 736 Total Assets 94,354 87,296 86,381 CURRENT LIABILITIES Accounts payable and accrued expenses 14,619 11,145 11,312 Loans and notes payable 3,307 2,183 10,994 Current maturities of long-term debt 1,338 485 4,253 Accrued income taxes 686 788 414 Total Current Liabilities 19,950 14,601 26,973 Long-term debt 38,116 40,125 27,516 Other noncurrent liabilities 8,607 9,453 8,510 Deferred income tax liabilities 2,821 1,833 2,284 Total Liabilities 69,494 66,012 65,283 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; authorized- Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost - 2,715 and 2,738 shares, Equity Attributable to Shareowners of The Coca-Cola Equity attributable to noncontrolling interests Total Equity Total Liabilities and Equity 1,760 1,760 1,760 18,116 17,601 17,154 69,094 66,555 65,855 (14,330) (14,601) (13,544) (51,641) (52,016) (52,244) 22,999 19,299 18,981 1,861 24,860 $ 94,354 1,985 21,284 2,117 21,098 $ 87,296 $ 86,381 COCA-COLA CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions 12 Months Ended 2020 2021 2019 Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Other operating charges Operating Income Interest income Interest expense Equity income (loss) - net Other income (loss) - net Income Before Income Taxes Income taxes Consolidated Net Income Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basic Net Income Per Share1 Diluted Net Income Per Share1 Average Shares Outstanding - Basic Effect of dilutive securities Average Shares Outstanding - Diluted 15,357 13,433 14,619 23,298 12,144 9,731 19,581 22,647 12,103 846 10,308 853 458 8,997 10,086 276 370 563 1,597 1,437 946 1,438 978 1,049 2,000 841 34 12,425 9,749 10,786 2,621 1,981 1,801 9,804 33 7,768 21 8,985 65 $9,771 $7,747 $8,920 $2.26 $1.80 $2.09 $2.25 $1.79 $2.07 4,315 4,295 4,276 25 28 38 4,340 4,323 4,314 2. Calculate the accounts receivable turnover and the average collection period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate the effectiveness of their accounts receivable collections. Which of the two companies seem to be doing a better job with receivables? How does this collection process affect the overall success of the company? 3. Calculate the inventory turnover and the average sales period for both companies for 2020 and 2021. Write a paragraph comparing 2021 with 2020 and Coke with Pepsi using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? PEPSICO Consolidated Balance Sheet - $ in Millions 2021 As of the end of 2020 2019 ASSETS Cash and cash equivalents $5,596 $ 8,185 $ 5,509 Short-term Investments 392 1,366 229 Accounts and notes receivable, net 8,680 8,404 7,822 Inventories 4,347 4,172 3,338 Prepaid expenses and other current assets 980 874 747 Disposal Group, Including Discontinued Operation, Assets 1,788 0 0 Assets, Current 21,783 23,001 17,645 Property, Plant and Equipment, net 22,407 21,369 19,305 Amortizable Intangible Assets, net 1,538 1,703 1,433 Goodwill 18,381 18,757 15,501 Indefinite-lived Intangible Assets (Excluding Goodwill) 17,127 17,612 14,610 Equity Method Investments 2,627 2,792 2,683 Deferred Income Tax Assets, Net 4,310 4,372 4,359 Other Assets 4,204 3,312 3,011 Total Assets 92,377 92,918 78,547 LIABILITIES AND EQUITY Short-term debt obligations 4,308 3,780 2,920 Accounts payable and other current liabilities 21,159 19,592 17,541 Disposal Group, Including Discontinued Operation, Liabilities 753 0 0 Liabilities, Current 26,220 23,372 20,461 Long-Term Debt Obligations 36,026 40,370 29,148 Deferred Income Tax Liabilities, Net 4,826 4,284 4,091 Other Liabilities, Noncurrent 9,154 11,340 9,979 Liabilities 76,226 79,366 63,679 Commitments and contingencies Common stock, authorized 3,600 3,600 3,600 Common stock, issued 1,383 1,380 1,391 PepsiCo Common Shareholders' Equity Common stock, par value 12/3 per share (authorized 3,600 shares, issued, net of $23 $ 23 $ 23 Additional Paid in Capital, Common Stock 4,001 Retained Earnings (Accumulated Deficit) 65,165 3,910 63,443 $ 3,886 61,946 Accumulated Other Comprehensive Income (Loss), Net of Tax $ (14,898) $ (15,476) Repurchased common stock, shares 484 487 Treasury Stock, Value $ (38,248) $ (38,446) 476 (36,769) Stockholders' Equity Attributable to Parent Stockholders' Equity Attributable to Noncontrolling Interest 16,043 108 13,454 98 $14,786 Total Equity Liabilities and Equity 16,151 $92,377 13,552 82 14,868 $ 92,918 $ 78,547 PEPSICO Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions Income Statement [Abstract] Net Revenue 12 Months Ended 2021 ###### 2020 2019 Cost of sales Gross profit 37,075 31,797 30,132 42,399 38,575 37,029 Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits income/(expense) Net interest expense and other 31,237 28,495 26,738 11,162 522 10,080 117 10,291 (44) (1,863) (1,128) (935) Income before income taxes 9,821 9,069 9,312 Provision for income taxes 2,142 1,894 1,959 Net income 7,679 7,175 7,353 Less: Net income attributable to noncontrolling interests 61 55 39 Net Income Attributable to PepsiCo $7,618 $7,120 $7,314 Net Income Attributable to PepsiCo per Common Share Basic $5.51 $5.14 $5.23 Diluted $5.49 $5.12 $5.20 Weighted-average common shares outstanding Basic Diluted 1,382 1,385 1,399 1,389 1,392 1,407 COCA-COLA CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions 2021 As of the end of 2020 2019 CURRENT ASSETS Cash and cash equivalents $9,684 $ 6,795 $ 6,480 Short-term investments 1,242 1,771 1,467 Total Cash, Cash Equivalents and Short-Term Investments 10,926 8,566 7,947 Marketable securities 1,699 2,348 3,228 Trade accounts receivable, less allowances of $516 and 3,512 3,144 3,971 $526, respectively Inventories 3,414 3,266 3,379 Prepaid expenses and other current assets 2,994 1,916 1,886 Total Current Assets 22,545 19,240 20,411 Equity method investments 17,598 19,273 19,025 Other investments 818 812 854 Other noncurrent assets 6,731 6,184 6,075 Deferred income tax assets 2,129 2,460 2,412 Property, plant and equipment - net 9,920 10,777 10,838 Trademarks with indefinite lives 14,465 10,395 9,266 Goodwill 19,363 17,506 16,764 Other intangible assets 785 649 736 Total Assets 94,354 87,296 86,381 CURRENT LIABILITIES Accounts payable and accrued expenses 14,619 11,145 11,312 Loans and notes payable 3,307 2,183 10,994 Current maturities of long-term debt 1,338 485 4,253 Accrued income taxes 686 788 414 Total Current Liabilities 19,950 14,601 26,973 Long-term debt 38,116 40,125 27,516 Other noncurrent liabilities 8,607 9,453 8,510 Deferred income tax liabilities 2,821 1,833 2,284 Total Liabilities 69,494 66,012 65,283 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; authorized- Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost - 2,715 and 2,738 shares, Equity Attributable to Shareowners of The Coca-Cola Equity attributable to noncontrolling interests Total Equity Total Liabilities and Equity 1,760 1,760 1,760 18,116 17,601 17,154 69,094 66,555 65,855 (14,330) (14,601) (13,544) (51,641) (52,016) (52,244) 22,999 19,299 18,981 1,861 24,860 $ 94,354 1,985 21,284 2,117 21,098 $ 87,296 $ 86,381 COCA-COLA CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions 12 Months Ended 2020 2021 2019 Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Other operating charges Operating Income Interest income Interest expense Equity income (loss) - net Other income (loss) - net Income Before Income Taxes Income taxes Consolidated Net Income Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basic Net Income Per Share1 Diluted Net Income Per Share1 Average Shares Outstanding - Basic Effect of dilutive securities Average Shares Outstanding - Diluted 15,357 13,433 14,619 23,298 12,144 9,731 19,581 22,647 12,103 846 10,308 853 458 8,997 10,086 276 370 563 1,597 1,437 946 1,438 978 1,049 2,000 841 34 12,425 9,749 10,786 2,621 1,981 1,801 9,804 33 7,768 21 8,985 65 $9,771 $7,747 $8,920 $2.26 $1.80 $2.09 $2.25 $1.79 $2.07 4,315 4,295 4,276 25 28 38 4,340 4,323 4,314