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TAKING IT companies have to report inventory at the LCNRV on the balance sheet? P6-10A The following financial information (in US$ millions) is for two

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TAKING IT companies have to report inventory at the LCNRV on the balance sheet? P6-10A The following financial information (in US$ millions) is for two major corporations for the three Calcu years ended December 31: (SOG PepsiCo Inc. 2011 2010 2009 Net sales $66,504 $57,838 $43,232 Cost of sales 31,593 26,575 20,099 Profit 6,462 6,338 5,979 Cash and short-term investments 4,425 6,369 4,135 Accounts receivable 6,912 6,323 4,624 Inventory 3,827 3,372 2,618 Prepaid expenses and other current assets 2,277 1,505 1,194 Current liabilities 18,154 15,892 8,756 Coca-Cola Company Net sales $46,542 $35,119 $30,990 Cost of sales 18,216 12,693 11,088 Profit 8,634 11,859 6,906 Cash and short-term investments 14,035 11,337 9,213 Accounts receivable 4,920 4,430 3,758 Inventory 3,092 2,650 2,354 3,450 Prepaid expenses and other current assets 3,162 2,226 Current liabilities 24,283 18,508 13,721 Instructions (a) Calculate the inventory turnover, days sales in inventory, current ratio, acid-test ratio, gross profit margin, and profit margin for each company for 2011 and 2010. (b) Comment on each company's profitability and liquidity

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