Coke is collecting its receivables more quickly


Pepsi's accounts receivable turnover was 9.9 for this year and 11.0 for last year. Coke's turnover was 9.3 for this year and 9.3 for last year. These results imply that:

1. Coke has the better turnover for both years

2. Pepsi has the better turnover for both years

3. Coke's turnover is improving

4. Coke's credit policies are too loose

5. Coke is collecting its receivables more quickly than Pepsi in both years

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Accounting Basics: Coke is collecting its receivables more quickly
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