PepsiCo, Inc., manufacturer and distributor of drinks, Frito-Lay, and Quaker Foods, provides the fol-lowing in a recent annual report (shown here in $ billions). Determine PepsiCo’s turnover. Net revenue $32.5Cost of goods sold $14.2Inventory:Raw material inventory $.74Work-in-process inventory $.11Finished goods inventory $.84Total average inventory investment $1.69 APPROACH c Use the inventory turnover computation in Equation (11-2) to measure inventoryperformance. Cost of goods sold is $14.2 billion. Total inventory is the sum of raw material at $.74 billion, work-in-process at $.11 billion, and finished goods at $.84 billion, for total average inventory invest-ment of $1.69 billion.
PepsiCo, Inc., manufacturer and distributor of drinks, Frito-Lay, and Quaker Foods, provides the fol-
lowing in a recent annual report (shown here in $ billions). Determine PepsiCo’s turnover.
Net revenue $32.5
Cost of goods sold $14.2
Inventory:
Raw material inventory $.74
Work-in-process inventory $.11
Finished goods inventory $.84
Total average inventory investment $1.69
APPROACH c Use the inventory turnover computation in Equation (11-2) to measure inventory
performance. Cost of goods sold is $14.2 billion. Total inventory is the sum of raw material at $.74 billion,
work-in-process at $.11 billion, and finished goods at $.84 billion, for total average inventory invest-
ment of $1.69 billion.
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