Discussions List - ACCT-150-R10 - Principles.. https://the 2. If ZZBest Corp. has current assets of $24 million and current liabilities of $15 million what is the impact on the current ratio of the following transactions? Each situation is independent. a. Purchase of inventory costing $2 million on credit. b. Sell inventory costing $2 million for a sales price of $3 on credit. c. Borrowing $10 million in cash from bank that will be repaid in 5 years. d. Pay cash for a prepaid insurance policy costing $1 million and covering one year. e. Pay cash for rent expense of $1 million. Required: For each transaction indicate whether the current ratio went up or down or stayed the same and why (i.e. change in current assets, liabilities, etc.) 3. The following information was reported for Pepsi for 2019 - Sales $67.1 billion and Accounts Receivable of $7.8 billion - for 2018 Accounts Receivable was $7.1 billion. For Coca Cola for 2019 - Sales $37.3 billion and Accounts Receivable of $4.0 - for 2018 Accounts Receivable was $3.6 billion. With this information calculate the accounts receivable turnover and days sales in receivables for 2019 for both of these competitors. Required: a. Based on your calculations, which company is doing a more efficient job of collecting from customers. Explain. b. Based on your answers which company is the most liquid? Why