assign2parta - Ch 13 comparative analysis case Part a...

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Ch. 13 comparative analysis case Part a Coca-Cola’s working capital is -$1.12 billion. Pepsi’s working capital is $2.398 billion. Part b The Coca-Cola Company Pepsico, Inc. Current cash debt coverage ratio 0.64662 .9490 Cash debt coverage ratio 0.413677 .4340 Current ratio 0.915312 1.3093 Acid-test ratio 0.57656 .8861 Receivable turnover ratio 9.775407 9.7298 Inventory turnover ratio 5.390313 8.5569 Based on Coca-Cola’s working capital, current cash debt coverage, cash debt coverage, current ratio, and acid-test ratio, it seems that the company has a high amount of debt compared to cash flow and current assets. The company’s receivables turnover ratio, however, seems excellent, at approximately 9.8 or every 37 days. The inventory turnover ratio is significantly lower than that of Pepsi, meaning Coke takes nearly a month longer than Pepsi to turnover inventory. This means that Coke’s inventory has a lower liquidity. Part c
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This note was uploaded on 10/20/2011 for the course ACC 301 taught by Professor Anthony during the Summer '11 term at Michigan State University.

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assign2parta - Ch 13 comparative analysis case Part a...

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