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Exercise 6-10 Suppose this information is available for PepsiCo, Inc. for 2012,

ID: 2427206 • Letter: E

Question

Exercise 6-10

Suppose this information is available for PepsiCo, Inc. for 2012, 2013, and 2014.

See image below:

Please find the following:

1. Calculate the inventory turnover for PepsiCo., Inc. for 2012, 2013, and 2014. (Round inventory turnover to 1 decimal place, e.g. 5.1.)

2. Calculate the days in inventory for PepsiCo., Inc. for 2012, 2013, and 2014. (Round days in inventory to 1 decimal place, e.g. 5.1.)

3. Calculate the gross profit rate for PepsiCo., Inc. for 2012, 2013, and 2014. (Round gross profit rate to 1 decimal place, e.g. 5.1%.)

Thank you!

Exercise 6-1O Suppose this information is available for PepsiCo, Inc. for 2012, 2013, and 2014 ons 01 Beginning inventory Ending inventory Cost of goods sold Sales revenue $1,926 $2,290 $2,522 2,290 2,522 2,618 18,038 20,351 20,099 39,474 43,251 43,232 Calculate the inventory turnover for PepsiCo., Inc. for 2012, 2013, and 2014. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 201 201 201 Inventory turnover| imes imes LINK TO TEXT Calculate the days in inventory for PepsiCo., Inc. for 2012, 2013, and 2014. (Round days in inventory to 1 decimal place, e.g. 5.1.) 201 201 201 Days in inventory LINK TO TEXT Calculate the gross profit rate for PepsiCo., Inc. for 2012, 2013, and 2014. (Round gross profit rate to 1 decimal place, eg, 5.1%.) 201 Gross profit rate LINK TO TEXT

Explanation / Answer

RATIO ANALYSIS FOR PEPSI CO YEAR 2012 2013 2014 BEGINNING INVENTORY 1926 2290 2522 ENDING INVENTORY 2290 2522 2618 AVERAGE INVENTORY BEGINNING INVENTORY+ ENDING INVENTORY/2 2108 2406 2570 COGS 18038 20351 20099 INVENTORY TURN OVER COGS/ AVERAGE INVENTORY 8.6 8.5 7.8 DAYS IN INVENTORY YEARS IN DAYS/ INVENTORY TURNOVER 42.7 43.2 46.7 SALES 39474.0 43251.0 43232.0 COGS 18038.0 20351.0 20099.0 GROSS PROFIT SALES-COGS 21436.0 22900.0 23133.0 GROSS PROFIT RATE GROSS PROFIT/ SALES 54.3 52.9 53.5