Calculate each firm''s operating cycle

Reference no: EM131290063

Use the following firms to complete this problem: Anheuser-Busch Companies, Inc. (BUD) Coca-Cola Company (KO) Molson Coors Brewing Company (TAP) PepsiCo, Inc. (PEP) Go to https://fi nance.yahoo.com, and input the ticker symbols noted in parentheses following each company name above. Under the Financials heading in the left-hand column, click on "Income Statement" and then "Balance Sheet" to obtain the most recent income statement and balance sheet for each fi rm. Use the appropriate financial statement data for each firm to respond to the following instructions and questions.

a. Use the formulas given in the chapter to calculate the following time periods (in days) for each of the firms: (1) Average age of inventory (AAI) (2) Average collection period (ACP) (3) Average payment period (APP)

b. Use the time periods calculated in part (a) to calculate each firm's operating cycle (OC) and cash conversion cycle (CCC).

c. Compare, contrast, and evaluate the OC and CCC calculated in part (b) for each of the following combinations: (1) The two soft drink companies (KO and PEP) (2) The two beer companies (BUD and TAP) How would you describe the differences found for each pair of firms?

d. Compare and contrast the OC and CCC for the two soft drink companies to those of the two beer companies. Explain any differences you observe.

Reference no: EM131290063

Questions Cloud

Write a paper about public relations planning : Write a paper about Public relations planning .

Should the firm install the system : All other costs are expected to be unaffected by this system. The firm can earn 14 percent per year on equal-risk investments.

How have marketing communications changed : How have marketing communications changed in your country over the past decade?- What is integrated marketing communications (IMC), and how does a company go about implementing it?

How do marketers measure the effectiveness of advertising : How do marketers measure the effectiveness of advertising?- How are public relations handled by businesses in your country?

Calculate each firm''s operating cycle : Compare and contrast the OC and CCC for the two soft drink companies to those of the two beer companies. Explain any differences you observe.

What you find the most difficult : Explain what SQL is and its functions. What do you enjoy the most about learning SQL? What you find the most difficult?

Values in formatting a documenting : What might be some challenges in formatting a 2013 document? What are the added values in formatting a documenting? What new feature (s) enhanced your ability to better format your documents. I want to also see that you have put some thought into t..

Identify the types of execution styles : Any message can be presented using different execution styles.- Identify the types of execution styles you are using and present your advertisements.

Takes an stack of integers of any length : Write a method called getHiLo() that takes an Stack of Integers of any length as its only parameter, and returns a new Stack of Integers that has a length of only 2. The top value in the new Stack that is returned is the highest value in the Stack..

User Account

All Pages