Cola Inc. and Soda Co. are two of the largest and most successful beverage companies...
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Accounting
Cola Inc. and Soda Co. 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).
Cola Inc.
Soda Co.
Fiscal Year Ended:
2015
2014
2013
2015
2014
2013
Net Sales
$
33,319
$
28,990
$
30,444
$
56,338
$
41,732
$
41,751
Accounts Receivable
4,448
3,783
3,111
6,437
4,684
3,754
Allowance for Doubtful Accounts
45
52
48
141
87
67
Accounts Receivable, Net of Allowance
4,403
3,731
3,063
6,296
4,597
3,687
Required:
Calculate the receivables turnover ratios and days to collect for Cola Inc. and Soda Co. for 2015 and 2014. (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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