You are evaluating the efficiency of inventory management practices at two beverage giants, The Coca-Cola Company and
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Question:
You are evaluating the efficiency of inventory management practices at two beverage giants, The Coca-Cola Company and PepsiCo, Inc., in the beverage industry.
Requirements:
- Coca-Cola reported cost of goods sold (COGS) of $12.3 billion and an average inventory of $3.1 billion for the fiscal year 2023. PepsiCo recorded COGS of $28.7 billion and an average inventory of $7.2 billion during the same period.
- Calculate the days sales of inventory (DSI) for both Coca-Cola and PepsiCo.
- Compare and interpret the DSI values of Coca-Cola and PepsiCo, discussing which company appears to manage its inventory more efficiently.
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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