Go to Connect online for the financial statements of Cadbury, plc., and to Appendix A of this book for the financial statements of the Nestlé Group.

Required:
1. Compute the inventory turnover ratio for both companies for the current year. What would you infer from the difference?
2. Both companies measure inventory at the lower of cost or net realizable value. However, one of the companies determines cost of inventory by using the weighted-average cost method while the other uses both FIFO and the weighted-average cost methods for different types of inventory. Would you expect the different methods to cause a large difference in cost of sales? Why?