PepsiCo’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.

Instructions

(a) Based on the information contained in these financial statements, compute the following 2013 ratios for each company.

(1) Inventory turnover.

(2) Days in inventory.

(b) What conclusions concerning the management of the inventory can you draw from these data?