The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data...

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The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions). (a) Coca-Cola PepsiCo Total current assets $20,751 $14,871 Total current liabilities 16,221 10,356 Net sales 36,590 51,032 Cost of goods sold 13,088 23,699 Net income 8,024 7,046 Average (net) accounts receivable for the year 4,024 5,454 Average inventories for the year 2,671 3,070 Average total assets 52,595 44,721 Average common stockholders' equity 26,736 17,156 Average current liabilities 15,755 10,372 Average total liabilities 25,960 27,666 Total assets 57,471 47,048 Total liabilities 28,172 27,144 Income taxes 2.410 2,500 Interest expense 420 468 Net cash provided by operating activities 9,686 7,996 Capital expenditures 2,352 2,528 Cash dividends 4,500 3,232 Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1. Use 365 days for calculation.) (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory Which company is more liquid? Coca-Cola :1 times PepsiCo :1 times days days times times days days (b) Compute the following solvency ratios for the two companies. (Round times interest earned to 1 decimal place, e.g. 15.2 and percentages to O decimal places, e.g. 15%.) (1) Debt to assets ratio (2) Times interest earned Question 5 of 5 < Coca-Cola % times PepsiCo % times - / 14 E (c) Compute the following profitability ratios for the two companies. (Round percentages to 1 decimal place, e.g. 15.2% and all other answers to 2 decimal places, e.g. 15.25.) (1) Profit margin (2) Asset turnover (3) Return on assets Coca-Cola % times % PepsiCo % times % (4) Return on common stockholders' equity % % Which company has lower profit margin? Which company has a higher profitability overall? The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions). (a) Coca-Cola PepsiCo Total current assets $20,751 $14,871 Total current liabilities 16,221 10,356 Net sales 36,590 51,032 Cost of goods sold 13,088 23,699 Net income 8,024 7,046 Average (net) accounts receivable for the year 4,024 5,454 Average inventories for the year 2,671 3,070 Average total assets 52,595 44,721 Average common stockholders' equity 26,736 17,156 Average current liabilities 15,755 10,372 Average total liabilities 25,960 27,666 Total assets 57,471 47,048 Total liabilities 28,172 27,144 Income taxes 2.410 2,500 Interest expense 420 468 Net cash provided by operating activities 9,686 7,996 Capital expenditures 2,352 2,528 Cash dividends 4,500 3,232 Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1. Use 365 days for calculation.) (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory Which company is more liquid? Coca-Cola :1 times PepsiCo :1 times days days times times days days (b) Compute the following solvency ratios for the two companies. (Round times interest earned to 1 decimal place, e.g. 15.2 and percentages to O decimal places, e.g. 15%.) (1) Debt to assets ratio (2) Times interest earned Question 5 of 5 < Coca-Cola % times PepsiCo % times - / 14 E (c) Compute the following profitability ratios for the two companies. (Round percentages to 1 decimal place, e.g. 15.2% and all other answers to 2 decimal places, e.g. 15.25.) (1) Profit margin (2) Asset turnover (3) Return on assets Coca-Cola % times % PepsiCo % times % (4) Return on common stockholders' equity % % Which company has lower profit margin? Which company has a higher profitability overall?