PepsiCo, Inc.s financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented
Question:
PepsiCo, Inc.’s financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented in Appendix B.
Instructions
(a) Based on the information in these financial statements, compute the following 2010 ratios for each company. (Assume all sales are credit sales and that PepsiCo’s receivables on its balance sheet are all trade receivables.)
(1) Accounts receivable turnover ratio.
(2) Average collection period for receivables.
(b) What conclusions about managing accounts receivable can you draw from these data?
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Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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