Question: This is one question but with multiple parts and I can't answer the questions below until I figure out the answer above. Thank you! Inventory
This is one question but with multiple parts and I can't answer the questions below until I figure out the answer above. Thank you!
Inventory turnover PepsiCo, Inc. manufactures and distributes drinks, Frito-Lay, and Quaker Foods. The company also provided the following inventory turnover information in an annual report. Management wants to know what the company's inventory turnover rate is and, for benchmarking purposes, how does PepsiCo turnover compare to Coca-Cola. A. Sum the average inventories and then compute the turnover for PepsiCo. Amounts are in billions Turnover: The number of times that a company's inventory cycles per year cost of goods sold total average inventory PepsiCo $32.5 Net Revenue Cost of goods sold (COGS) $14.2 Average Inventory Raw material inventory $0.74 $0.11 Work-in-process inventory Finished goods inventory $0.84 Total average inventory investment Inventory turnover B. Calculate the turnover for Coca-Cola Coca-Cola Cost of goods sold (COGS) $10.8 Total average inventory investment $0.76 Inventory turnover 14.21 C. For benchmarking purposes, a. Which company spends more in the production of its goods? b. In the absence of data, consider reasons why one company may spend more in the production of its goods as compared to the other company c. which company has a more desirable inventory turnover? d. Why is this turnover rate more desirable
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