The following financial information (in US$ millions) is for two major corporations for the three years ended December 31:

Instructions
(a) Calculate the inventory turnover, days sales in inventory, and gross profit margin for each company for 2014 and 2013.
(b) Comment on your findings.
Taking It Further
Companies are required to disclose in a significant accounting policies note how they determine the cost of their inventory. Both Pepsi and Coca-Cola state that they use weighted average and FIFO. Under what circumstances would it make sense for a company to use both cost formula?

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PepsiCo Inc. Net sales Cost of sales Profit Inventory 2014 S66,683 30,884 6,558 3,143 2013 $66,415 31,243 6,787 3,409 2012 $65,492 31,291 6,214 3,581 Coca-Cola Company Net sales Cost of sales Profit Inventory $45,998 17,889 7,124 3,100 $46,854 18,421 8,626 3,277 $48,017 19,053 9,086 3,264