The following information was obtained from the 2008 and 2007 financial statements of Coca-Cola Company and Subsidiaries and PepsiCo Inc. and Subsidiaries. (Yearends for PepsiCo are December 27, 2008, and December 29, 2007.) Assume all sales are on credit for both companies.

Required
1. Using the information provided, compute the following for each company for 2008:
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 twocompanies.

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in millions) Coca-Cola PepsiCo $ 3,090 3,317 2,187 2,220 31,944 28,857 11,374 10,406 Accounts and notes receivable, neta 12/31/08 12/31/07 12/31/08 2/31/07 2008 2007 2008 2007 S 4,683 4,389 2,522 2,290 43,251 39,474 20,351 18,038 Net revenue Cost of goods solde Described as trade accounts receivable, less allowances" by Coca-Cola Described as "net operating revenues" by Coca-Cola. Described as "cost of sales" by PepsiCo.