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!
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