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Question

iPad 6:21 PM 95%-. edugen.wileyplus.com O These a Seeing Th....Four Frien.. 30 Public.. Personal a...How To Ad... Test result.... Online Ser. Kimmel, Accounting, 4e CALCULATOR PRINTER VERSION BACK ASSIGNMENT RESOURCES Exercise 6-10 Ch06 Homework This information is available for PepsiCo, Inc. for 2007, 2008, and 2009 2007 2008 Beginning inventory Ending inventory Cost of goods sold Sales revenue 1,926 2,290 18,038 39,474 s 2,290 2,522 20,351 43,251 2,522 2,618 20,099 43,232 Problem 6-3A (a1) Your answer is incorrect. Try again. Calculate the inventory turnover ratio for PepsiCo., Inc. for 2007, 2008, and 2009. (Round answers to 1 decimal place, Objective 2009 times times times turnover ratio Click if you would like to Show Work for this question: Open Show Work Attempts: 3 of 5 used SAVE FOR LATER SUBMIT (a2)

Explanation / Answer

Year: 2007

Average Inventory Ratio = Beginning Inventory + Ending Inventory /2

= $1,926 +2,290/2 = $4,216/2= $ 2,108

Inventory Turn over Ratio = Cost of Goods sold/ Average Inventory Ration

                                    = 18,038/2,108 = 8.56 or 8.5

Year: 2008

Average Inventory Ratio = Beginning Inventory + Ending Inventory /2

= $ 2,290 + 2,522 /2 = $ 2,406

Inventory Turn over Ratio = Cost of Goods sold/ Average Inventory Ration

                                                = 20,351/2,406 = 8.46 or 8.4

Year: 2009

Average Inventory Ratio = Beginning Inventory + Ending Inventory /2

= $2,522 +2,618/2 = $5140/2= $ 2,570

Inventory Turn over Ratio = Cost of Goods sold/ Average Inventory Ration

                                    = 20,099/2,570 = 7.82 or 7.8

                                                         2007                        2008                     2009

Inventory Turnover Ratio                 8.5 times          8.4 times            7.8 times