Question

Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) Beginning inventory Ending inventory Cost of goods sold Sales revenue 2020 $1,700 2,200 15.015 38,600 2021 $2,200 2,500 17,860 45,100 2022 $2,500 2,600 17,595 45,000

Answer 1

$Days in Inventory = \frac{cost of Average Inventory}{Cost of Goods Sold}X365$

Beginning Inventory (A) Ending Inventory (B) Average Inventory C = [(A+B)/2] Cost of Goods Sold (D) 2020 $1,700 $2,200 $1,950 $15,015 2021 $2,200 $2,500 $2,350 $17,860 2022 $2,500 $2,600 $2,550 $17,595 Days in Inventory (C/D)*365 47.4 48.0 Days 52.9 Days Days

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