Coca-Cola and PepsiCo 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).
Required:
1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2012 and 2011. (Round to one decimal place)
2. Which of the companies is quicker to convert its receivables into cash?