Focus on Financials: | Nestl This case spans all 12 chapters and is based on the consolidated financial statements of Nestl. As you work with Nestl throughout this course, you will develop the confidence and ability to use the financial statements of other companies as well Refer to Nestl financial statements in Appendix A. Altenatively, you may choose to obtain the full annual report from Nestl's website at www.nestle.com/investors. You may find the information overwhelming for now,but try to spot the key principles that we have discussed in this chapler. It will get progressively easier as you gain familiarity with the elements of the financial statements. Requirements 1. What method does Nestl use to measure its inventories? 2. What would be the effect of Nestl adopting FIFO to measure the value of its sundry supplie (previously measured under weighted average method) assuming rising inventory prices? 3. Three important pieces of inventory information are the cost of inventory on hand, (a) the cost of goods sold, and (b) the cost of inventory purchases. Assume that the actual cost of inventory is equal to the fair value of the inventory, at CHF 8,401 million and CHF 8,153 million at December 31, 2016 and 2015, respectively. Identify or compute items (a) and (b for Nestl for the year ended December 31, 2016. . Did Nestl's gross profit margin percentage (use sales and cost of goods sold) on company sale improve or deteriorate in the year ended December 31, 2016, compared to the previous year? Focus on Financials: | Nestl This case spans all 12 chapters and is based on the consolidated financial statements of Nestl. As you work with Nestl throughout this course, you will develop the confidence and ability to use the financial statements of other companies as well Refer to Nestl financial statements in Appendix A. Altenatively, you may choose to obtain the full annual report from Nestl's website at www.nestle.com/investors. You may find the information overwhelming for now,but try to spot the key principles that we have discussed in this chapler. It will get progressively easier as you gain familiarity with the elements of the financial statements. Requirements 1. What method does Nestl use to measure its inventories? 2. What would be the effect of Nestl adopting FIFO to measure the value of its sundry supplie (previously measured under weighted average method) assuming rising inventory prices? 3. Three important pieces of inventory information are the cost of inventory on hand, (a) the cost of goods sold, and (b) the cost of inventory purchases. Assume that the actual cost of inventory is equal to the fair value of the inventory, at CHF 8,401 million and CHF 8,153 million at December 31, 2016 and 2015, respectively. Identify or compute items (a) and (b for Nestl for the year ended December 31, 2016. . Did Nestl's gross profit margin percentage (use sales and cost of goods sold) on company sale improve or deteriorate in the year ended December 31, 2016, compared to the previous year