PepsiCo, Inc., manufacturer and distributor of drinks, Frito-Lay, and Quaker Foods, provides the following in a recent annual report (shown here in $ billions). Determine PepsiCo’s turnover.

APPROACH c Use the inventory turnover computation in Equation (11-2) to measure inventory performance. Cost of goods sold is $28.7 billion. Total inventory is the sum of raw material at $1.32 billion, work-in-process at $.15 billion, and finished goods at $1.26 billion, for total average inventory investment of $2.73 billion.

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Net revenue Cost of goods sold Inventory: $63.5 $28.7 Raw material inventory $1.32 Work-in-process inventory $.15 Finished goods inventory $1.26 Total average inventory investment $2.73