Question

The following financial information (in US$ millions) is for two major corporations for the three years ended December 31 2016 2015 2014 PepsiCo Inc. Sales Cost of sales Profit Inventory hy $62,799 28,209 6,379 2,723 $63,056 28,731 5,501 2,720 $66,683 30,884 6,558 3,143 Coca Cola Company Sales Cost of sales Profit Inventory $41,863 16,465 6,550 2,675 $41,294 17,482 7,366 2,902 $45,998 17,889 7,124 3,100 Calculate the inventory turnover, days sales in inventory, and gross profit margin for each company for 2016 and 2015. (Round das sales in inventory to decimal places, .g. 52 and other answers to decimal places, eg. 52.75. Use 365 days for calculation) Pepsico. Inc 2016 2015 Inventory turnover times Day's sales in inventory days days Cross profit margin 96 2016 2015 Coca Cola Company Inventory tumover Days sales in inventory times dors days Gross profit margin

Answer 1

PepsiCo. Inc	2016		2015
Inventory Turnover	10.36	times	9.80	times
Days sales in Inventory	35.22	days	37.25	days
Gross Profit margin	10.16	%	8.72	%

Coca-Cola Company	2016		2015
Inventory Turnover	5.90	times	5.83	times
Days sales in Inventory	61.83	days	62.66	days
Gross Profit margin	15.65	%	16.63	%

Note:

Inventory Turnover = Cost of sales/Average Inventory

Days Sales in Inventory = Average Inventory/cost of sales * 365 days

Gross Profit margin = Profit/Sales *100