Calculating the Days$$ Payable Period

The following information is taken from the annual report of Coca$-$Cola Enterprises, Inc.:

$($amounts in millions$)$ Year $2$ Year $1$

Net revenue $$18,706$ $$18,158$

Cost of goods sold $11,18510,771$

Inventories $786763$

Accounts payable $2,6392,708$

Using this information, calculate the accounts payable turnover ratio and the days$$ payable period for Year $1$ and Year $2.$

Do not round until your final answer. Round all answers to nearest one decimal place.

Year $2$ Year $1$

Accounts payable turnover Answer $1$

$4\mathrm{.}2$

Answer $2$

$4$

Days' payable period Answer $3$

$86\mathrm{.}9$

Answer $4$

$91\mathrm{.}3$

Is Coca$-$Cola Enterprises taking longer to pay its accounts payable to its suppliers

Answer $5$

No$,$ it is paying its current trade obligations more quickly.

Do the ratios indicate that the company$$s credit risk is increasing?

Answer $6$

The company$$s credit risk is decreasing.