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Question 3 Inventory accounts: Using the excerpts below from PepsiCo, Inc.s Financial Statements and Notes to Financial Statements from its 2019 annual report, answer the

Question 3 Inventory accounts: Using the excerpts below from PepsiCo, Inc.s Financial Statements and Notes to Financial Statements from its 2019 annual report, answer the following (NOTE: all numbers given in the excerpts are in $millions):

  1. If PepsiCo. purchased $2,956 million worth of raw materials and packaging during the fiscal year ended 12/28/2019, how much raw materials and packaging did they use during the fiscal year ended 12/28/2019?
  2. Calculate the Cost of Goods Manufactured for PepsiCo. for the fiscal year ended 12/28/2019

    Consolidated Balance Sheet

    PepsiCo, Inc. and Subsidiaries

    December 28, 2019 and December 29, 2018

    (in millions except per share amounts)

    2019

    2018

    ASSETS

    Current Assets

    Cash and cash equivalents

    $ 5,509

    $ 8,721

    Short-term investments

    $ 229

    $ 272

    Restricted cash

    $ -

    $ 1,997

    Accounts and notes receivable, net

    $ 7,822

    $ 7,142

    Inventories

    $ 3,338

    $ 3,128

    Prepaid expenses and other current assets

    $ 747

    $ 633

    Total Current Assets

    $ 17,645

    $ 21,893

    Note 15 Supplemental Financial Information

    Balance Sheet

    Inventories

    2019

    2018

    Raw materials and packaging

    $ 1,395

    $ 1,312

    Work-in-process

    $ 200

    $ 178

    Finished goods

    $ 1,743

    $ 1,638

    Total

    $ 3,338

    $ 3,128

    Consolidated Statement of Income

    PepsiCo, Inc. and Subsidiaries

    Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017

    (in millions except per share amounts)

    2019

    2018

    2017

    Net Revenue

    $ 67,161

    $ 64,661

    $ 63,525

    Cost of sales

    $ 30,132

    $ 29,381

    $ 28,796

    Gross profit

    $ 37,029

    $ 35,280

    $ 34,729

    Selling, general and administrative expenses

    $ 26,738

    $ 25,170

    $ 24,453

    Operating Profit

    $ 10,291

    $ 10,110

    $ 10,276

    Other pension and retiree medical benefits (expense)/income

    $ (44)

    $ 298

    $ 233

    Interest expense

    $ (1,135)

    $ (1,525)

    $ (1,151)

    Interest income and other

    $ 200

    $ 306

    $ 244

    Income before income taxes

    $ 9,312

    $ 9,189

    $ 9,602

    Provision for/(benefit from) income taxes (See Note 5)

    $ 1,959

    $ (3,370)

    $ 4,694

    Net income

    $ 7,353

    $ 12,559

    $ 4,908

    Less: Net income attributable to noncontrolling interests

    $ 39

    $ 44

    $ 51

    Net Income Attributable to PepsiCo

    $ 7,314

    $ 12,515

    $ 4,857

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