The following information was obtained from the 2008 and 2007 financial statements of Coca-Cola Company and Subsidiaries and PepsiCo Inc. and Subsidiaries. (Yearends for PepsiCo are December 27, 2008, and December 29, 2007.) Assume all sales are on credit for both companies. Required1. Using the information provided, compute the following for each company for 2008: a. Accounts receivable turnover ratiob.

Chapter 13, Exercises #3

The following information was obtained from the 2008 and 2007 of Coca-Cola Company and Subsidiaries and PepsiCo Inc. and Subsidiaries. (Yearends for PepsiCo are December 27, 2008, and December 29, 2007.) Assume all sales are on credit for both companies.

Required
1. Using the information provided, compute the following for each company for 2008:
a. Accounts receivable turnover ratio
b. Number of days€™ sales in receivables
c. Inventory turnover ratio
d. Number of days€™ sales in inventory
e. Cash-to-cash operating cycle
2. Comment briefly on the liquidity of each of these twocompanies.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...