The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Cadbury in Appendix A. as well as the complete annual report, including notes to the financial statements, at www.cadbury.corn.

Instructions

Answer the following questions. Complete the requirements in millions of dollars. as shown in Cadbury’s annual report.

(a) What did Cadbury report for the amount of inventories in its consolidated statement of financial position at December 31, 2008? At December 31, 2007?

(b) Compute the dollar amount of change and the percentage change in inventories between 2007 and 2008. Compute inventory as a percentage of current assets at December 31, 2008.

(c) How does Cadbury value its inventories? Which inventory cost flow method does Cadbury use?

(d) What is the cost of sales (cost of goods sold) reported by Cadbury for 2008 and 2007? Compute the percentage of cost of sales to net sales in 2008.