Review the annual reports of PepsiCo and Amazon, two of the largest publicly traded firms in America.

• Compute and compare the accounts receivable turnover ratios and the average collection period in days for PepsiCo and Amazon. Indicate all the numbers you used to calculate the ratio.
• What constitutes a "reasonable" accounts receivable turnover ratio? You must compare each ratio with the respective industry's ratio.
• What constitutes a "reasonable" average collection period in days?
• What characteristic(s) of these companies would indicate that these ratios are reasonable?
• What would be the reasons for PepsiCo and Amazon to sell their receivables? Explain.
• Back up your answers with facts and cite websites and text references used.

PepsiCo

Visit the PepsiCo website (https://www.pepsico.com). Find the financial information and the annual reports.

At the site, click your mouse on "Investors" at the top of the page and choose "SEC Filings."

Under the title "SEC Filings," select "Annual Filings (10K)."

Choose the 2022 annual report. Note which year's information is used. Scroll through the annual report to find the information needed to answer the questions.

Amazon

Go to the Amazon website (https://www.amazon.com). Find the financial information and the annual reports.

At the site, click the mouse on "Investor Relations"  

Then, locate "SEC Filings" and select "Annual Report (10K)."

Choose the 2022 annual report. Note which year's information is used. Scroll through the annual report to find the information needed to answer the questions.

Respond using the information from the website visits.

References

PepsiCo (n.d.). https://www.pepsico.com

Amazon (n.d.). https://www.amazon.com