Accounting

The total dollar amounts flier for inventories at the end of 2008 is $2,522 whizz gazillion million million and at the end of 2007 is $2,290 million. The inventories improver from 2007 to 2008. 2. Inventories argon values at the lower of woo or market. Cost is determined exploitation the average, first-in, first-out (first in first out) or last-in, first-out (last in first out) methods. Approximately 14% in 2008 and 2007 of the stock award exist was computed using the last in first out method. The differences surrounded by last in first out and FIFO methods of valuing these inventories were non material. 3. In 2008, breed turnover rate=(Cost of Goods Sold)/(Average Inventory)=$20,351/(($2,522+$2,290)/2)=8.458times In 2008, old age in Inventory=365/(Inventory turnover rate)=365days/8.458=43.154days 4. In 2008, the total assets atomic depend 18 $35,994. The inventories for this course argon $2,522. The percentage of total assets that the boyfriend monde has invested in its inventories is 7%. In 2007, the total assets are $34,628. The inventories for this year are $2,290. The percentage of inventories in total assets is 6.6% 5. The dividing lines of the inventories explained the methods of stocktaking cost which the phoner used. The three of import methods, average, LIFO, FIFO hurt both been used. Especially, the company pointed out that more or less 14% of the inventory cost in recent devil years was computed using the LIFO method.

It indicates that the inventory cost whitethorn not be over-estimate. save the differences between LIFO and FIFO methods dont have been preserve in detail. Reference breeding about pepsis inventory paygrade procedures was found in the consolidated balance stable gear and the note 14 of the notes to the financial statements of the annual report. http://www.pepsico.com/Annual-Reports/2008/financials/statements-03.html http://www.pepsico.com/Annual-Reports/2008/financials/notes-14.html interchange & bills Equivalents 1. In 2008, the hard currency and cash equivalents is $2,064 million. In 2007, it is reported as $910 million. The company report increases amounts on...If you postulate to get a respectable essay, order it on our website: Orderessay

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