Question

Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022.

(in millions)		2020		2021		2022
Beginning inventory		$2,000		$2,400		$2,700
Ending inventory		2,400		2,700		2,800
Cost of goods sold		20,680		23,715		23,650
Sales revenue		38,800		42,500		42,460

Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.)

		2020			2021			2022
Inventory turnover		enter an inventory turnover	times		enter an inventory turnover	times		enter an inventory turnover	times

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Calculate the days in inventory for 2020, 2021, and 2022. (Round days in inventory to 1 decimal place, e.g. 5.1.)

		2020			2021			2022
Days in inventory		enter a number of days	days		enter a number of days	days		enter a number of days	days

Answer 1

	2020		2021		2022
Inventory turnover	9.4	times	9.3	times	8.6	times

Working:

Inventory turnover = Cost of goods sold/Average inventory

	2020	2021	2022
Cost of goods sold	20680	23715	23650
Beginning inventory	2000	2400	2700
Ending inventory	2400	2700	2800
Total inventory	4400	5100	5500
Average inventory	2200	2550	2750
Inventory turnover	9.4	9.3	8.6

	2020		2021		2022
Days in inventory	38.8	days	39.2	days	42.4	days

Working:

Days in inventory = 365 days/Inventory turnover

	2020	2021	2022
	365	365	365
Inventory turnover	9.4	9.3	8.6
Days in inventory	38.8	39.2	42.4