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 http://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.