Question

The financial statements of The Coca-Cola Company and PepsiCo, Inc. can be accessed at the book’s website.

Instructions
Use information found at the book’s website to answer the following questions.
(a) What were the cash and cash equivalents reported by Coca-Cola and PepsiCo at the end of 2006? What does each company classify as cash equivalents?
(b) What were the accounts receivable (net) for Coca-Cola and PepsiCo at the end of 2006? Which company reports the greater allowance for doubtful accounts receivable (amount and percentage of gross receivable) at the end of 2006?
(c) Assuming that all “net operating revenues” (Coca-Cola) and all “net sales” (PepsiCo) were net credit sales, compute the accounts receivable turnover ratio for 2006 for Coca-Cola and PepsiCo; also compute the days outstanding for receivables. What is your evaluation of the difference?



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  • CreatedMay 16, 2012
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