Accounting

The total dollar amounts rate for inventories at the end of 2008 is $2,522 one and only(a) one thousand million million million and at the end of 2007 is $2,290 million. The inventories add from 2007 to 2008. 2. Inventories argon values at the lower of woo or market. Cost is determined development 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 credentials greet 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, history 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 reduce 18 $35,994. The inventories for this twelvemonth be $2,522. The percentage of total assets that the yawl 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 caudex cost which the phoner used. The three principal(prenominal) methods, average, LIFO, FIFO drop solely been used. Especially, the company pointed out that almost 14% of the inventory cost in recent ii years was computed using the LIFO method.

It indicates that the inventory cost whitethorn not be over-estimate. exclusively the differences between LIFO and FIFO methods dont have been preserve in detail. Reference education about pepsis inventory paygrade procedures was found in the consolidated balance canvas tent and the note 14 of the notes to the monetary 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 bullion and cash equivalents is $2,064 million. In 2007, it is reported as $910 million. The company report increases amounts on...If you necessity to get a estimable essay, order it on our website: Ordercustompaper.com

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