Evaluating Operating Performance and Effectiveness Information is provided below for Coca Cola Company and PepsiCo, Inc. for 2001 and 2000.
|
Coca Cola |
PepsiCo |
|||
|
(In millions) |
2001 |
2000 |
2001 |
2000 |
|
Net sales |
$20,092 |
$19,889 |
$26,935 |
$25,479 |
|
Cost of sales |
6,044 |
6,204 |
10,754 |
10,226 |
|
Net income |
3,969 |
2,177 |
2,662 |
2,543 |
|
Total assets |
22,417 |
20,834 |
21,695 |
20,757 |
|
Accounts receivable, net |
1,882 |
1,757 |
2,142 |
2,129 |
|
Inventories |
1,055 |
1,066 |
1,310 |
1,192 |
|
Cash from operations |
4,110 |
3,585 |
4,201 |
4,440 |
Required
A. Prepare a schedule showing the values of three turnover ratios for each company for the two years shown.
B. Discuss the effectiveness of Coca Cola and PepsiCo using the results of these turnover ratios.
C. Using this information, discuss the cash operating performance of Coca Cola and PepsiCo.