PA$8-5($Algo$)$ Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to

Collect $[$LO $8-4]$

Cola Incorporated and Soda Company are two of the largest and most successful beverage companies in the world in terms of the

products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the

following rounded amounts reported in their annual reports $($amounts in millions$).$

Required:

Calculate the receivables turnover ratios and days to collect for Cola Incorporated and Soda Company for $2018$ and $2017.$

$2-$a$.$ Which of the companies was quicker to convert its receivables into cash in $2018?$

$2-$b$.$ Which of the companies was quicker to convert its receivables into cash in $2017?$

Complete this question by entering your answers in the tabs below.

Calculate the receivables turnover ratios and days to collect for Cola Incorporated and Soda Company for $2018$ and

$($Use $365$ days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your

final answers to $1$ decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio

calculation.$)$

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