PepsiCo's financial statements are presented in Appendix B. Financial statements of The Coca‐Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are available at each company's respective website.

Instructions

a. Based on the information contained in these financial statements, compute the following 2015 ratios for each company.

1. Inventory turnover.

2. Days in inventory.

b. What conclusions concerning the management of the inventory can you draw from these data?