'Case Study for Coca-Cola vs Pepsico for 2009\r'

'LP 6. 2 Comparative analytic thinking Case, The Coca-Cola Company and PepsiCo, Inc. Instructions: Go to the book’s companion website and use the information found on that point to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) What were the notes and property equivalents reported by Coca-Cola and PepsiCo at the ending of 2009? What does each company classify as coin equivalents? Answer: On April 9, 2009, Coca-Cola Company reported interchange and gold equivalent to be $6,816,000,000 and on celestial latitude 26, 2009, PepsiCo reported cash and cash equivalent to be $3,943,000,000.\r\nCoca-Cola has made almost double the cash and cash equivalent than PepsiCo. gold equivalent from both companies broadly speaking including their time deposits and other investments that are highly liqui assured and contribute maturities of three months or less at the date of as cash equivalents from both companies. Coca-Cola Company typically fund a significant portion of their dividends, crownwork expenditures, contractual obligations, and share repurchases and acquisitions with cash generated from operating activities. They depose on external funding for additional cash requirements.\r\nThe Company does not typically raise chapiter through the issuance of stock. Instead, the company use debt pay to lower overall cost of capital and amplification their return on shareowners’ equity. Refer to the heading ‘‘Cash Flows from Financing Activities”. PepsiCo believed that their cash generating capability and financial condition, unitedly with their revolving credit facilities and other available methods of debt financing, would be fit to meet their operating, investing and financing needs. As of celestial latitude 26, 2009, their operations in Venezuela comprised 7% of their cash and cash equivalents balance. b) What were the accounts receivable ( lucre) for Coca-Cola and PepsiCo at the end of 2009? Which company reports the great allowance for doubtful accounts receivable (amount and percentage of crying(a) receivable) at the end of 2009? (c) Assuming that allâ€Å" plunder operating revenues”(Coca-Cola) and allâ€Å"net sales”(Pepsi Co)were net credit sales,compute the accounts receivable turnover ratio for 2009 for Coca-Cola and PepsiCo; in like manner compute the days outstanding for receivables. What is your evaluation of the remnant?\r\n'