BYP6-2

PepsiCo's financial statements are presented in Appendix B. Financial statements of the Coca-Cola Company are presented in Appendix C. Instructions for access and using the complete annual reports of PepsiCo and Coca-Cola , including the ntes to the financial statements, are also provided in Apprendices Band C, respectively.

Instructions

(a) Based on the information contained in these financial statements, compute the following 2011 ratios for each inventoy.

(1) Inventory turnover

(2) Days in inventory

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