Answer:
Please find the detailed answer in the explanation section.
Explanation:
1. Current ratio = total current assets ÷ total current liabilities
For Coca-cola: $17,551 ÷ 13,721
= 1.28
For Pepsi : $12,571 ÷ $8,756
= 1.44
2.Accounts receivable turnover times times = Net sales ÷ average (net) accounts receivable
For Coca-cola: $30,990 ÷ $3,424
= 9.1
For Pepsi : $43,232 ÷ $4,654
= 9.3
3. Average collection period days days = (Accounts Receivable ÷ Net sales ) x 365 days
For coca-cola: ($3,424 ÷ 30,990) x 365 days
=40.3 days
For pepsi: ($4,654 ÷ $43,232) x 365 days
= 39.3 days
4. Inventory turnover times = Sales ÷ Inventory
For Coca-cola: $30,990 ÷ $2,271
=13.6
For Pepsi: $43,232 ÷ $2,570
=16.8
5.Days in inventory days = (Average Inventory ÷ Cost of sales) x 365 days
For Coca-cola: ($2,271 ÷ $11,088 ) x365 days
=74.8 days
For Pepsi: ($2,570 ÷ $20,099 ) x365 days
=46.7days
