1. a. Estimate the amount of raw material inventory the company purchased during 2018. (Hint: Use the cost of goods sold equation and use the total beginning and ending inventory amounts in your calculations.)

b. What method does the company use to determine the cost of its inventory?

c. Compute the inventory turnover ratio and number of days in inventory for 2018. (Use total inventory for your calculations.)

NOTE 5: INVENTORIES Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following (in millions): December 31, Raw materials and packaging Finished goods Other Total inventories 2018 2017 $ 1,862 $ 1,729 692 693 212 233 $ 2,766 $ 2,655 Analysis of Consolidated Statements of Income Percent Change 2018 vs. 2017 2017 vs. 2016 2018 2017 2016 (10% (11) (9) (15)% (19) (13) (19) (43) $ 31,856 11,770 20,086 63.1% 10,307 1,079 8,700 27.3% 682 919 1,008 (1,121) $ 35,410 $ 41,863 13,255 16,465 22,155 25,398 62.6% 60.7% 12,654 15,370 1,902 1,371 7,599 8,657 21.5% 20.7% 677 642 841 733 1,071 835 (1,764) (1,265) (18) 39 (12) Year Ended December 31, (In millions except percentages and per share data) NET OPERATING REVENUES Cost of goods sold GROSS PROFIT GROSS PROFIT MARGIN Selling, general and administrative expenses Other operating charges OPERATING INCOME OPERATING MARGIN Interest income Interest expense Equity income (loss) net Other income (loss) net INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes from continuing operations Effective tax rate NET INCOME FROM CONTINUING OPERATIONS Income (loss) from discontinued operations (net of income taxes of $126, $47 and $0, respectively) CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 14 1 9 (6) 36 6 15 28 (39) 8,350 1,623 19.4% 6,742 5,560 82.5% 8,136 1,586 19.5% 24 (71) (17) 251 6,727 1,182 6,550 469 (82) 101 (251) 6,476 42 1,283 35 6,550 23 405 22 (80) 55 $ 6,434 $ 1,248 $ 6,527 416% (81)%