Refer to the financial statements and related notes of the Coca-Cola Company in Appendix A of this

Question:

Refer to the financial statements and related notes of the Coca-Cola Company in Appendix A of this book.

Required

1. Which inventory method(s) does the company use? Explain why you think the company selected this method(s).

2. Compute the inventory turnover ratio for 2004 and 2003 using the ending inventory instead of the average inventory. What is your evaluation of the difference?

3. Recreate summary journal entries to record the transactions that affected inventory during 2004.

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,... Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...