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BYP6-2 PepsiCo’s financial statements

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BYP6-2 PepsiCo’s financial statements are presented in Appendix A. Coca-Cola’s financial
statements are presented in Appendix B.

Instructions

(a) Based on the information contained in these financial statements, compute the following
2005 ratios for each company.

(1) Inventory turnover ratio

(2) Days in inventory

(b) What conclusions concerning the management of the inventory can you draw from these data?

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