Question

Calculate the days in inventory for 2020, 2021, and 2022. (Round days in inventory to 1 decimal place, e.g. 5.1.)

Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $1,700 $2,300 $2,500 Ending inventory 2,300 2,500 2,600 Cost of goods sold 17,000 20,160 19,635 Sales revenue 38,900 44,500 44,420 (a) Correct answer iconYour answer is correct. Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Inventory turnover enter an inventory turnover times enter an inventory turnover times enter an inventory turnover times eTextbook and Media    Attempts: 1 of 6 used (b) Calculate the days in inventory for 2020, 2021, and 2022. (Round days in inventory to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Days in inventory enter a number of days days enter a number of days days enter a number of days days

Answer 1

(a)
	2020	2021	2022
Inventory turnover [ Cost of goods sold / Average inventory ]	8.5	8.4	7.7
Working note :
	2020	2021	2022
Average inventory [ ( Beginning inventory + Ending inventory ) / 2 ]	2000	2400	2550

(b)
	2020		2021		2022
Days in inventory [ Days in a year / Inventory turnover ]	42.9	days	43.5	days	47.4	days