Obtain copies of the annual reports of The Coca-Cola Company and PepsiCo for the most recent year.

Question:

Obtain copies of the annual reports of The Coca-Cola Company and PepsiCo for the most recent year. You can find the annual reports at the companies’ websites (www.coca-cola.com and www.pepsico.com) in the investor information section or at the Securities and Exchange Commission’s website (www.sec.gov) using EDGAR (Electronic Data Gathering, Analysis, and Retrieval). The SEC requires Form 10-K, which includes the annual report, to be filed on EDGAR. Search or scroll within the annual reports to find the financial statements.

Required:
1. For each company, calculate the gross profit ratio, , and average days in inventory.
2. Compare the management of each company’s investment in inventory.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...