Question 1

Colgate Palmolive Company manufactures and markets a wide variety of products in the U.S. and around the world in two product segments: Oral, Personal and Home Care; and Pet Nutrition.

Oral, Personal and Home Care products are sold primarily to a variety of traditional and eCommerce retailers, wholesalers and distributors worldwide. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hills Pet Nutrition. The principal customers for Pet Nutrition products are authorized pet supply retailers, veterinarians and eCommerce retailers.

Principal global and regional trademarks include Colgate, Palmolive, Protex, Ajax, Axion, Fabuloso, Hills Science Diet, Hills Prescription Diet and many more.

Following is the excerpt from the Companys financial statement:

Financial years	2016	2017	2018	2019
($ in millions)	$	$	$	$
Revenue	15,195	15,454	15,544	15,693
Cost of goods sold	6,026	6,099	6,282	6,360
Accounts receivable	1,411	1,480	1,400	1,440
Inventory	1,171	1,221	1,250	1,400
Accounts payable	1,124	1,212	1,222	1,237

(Source: Thomson Reuter)

Note: There are 365 days in a financial year. Cost of goods sold equals purchases.

Required:

Calculate Average Age Inventory (AAI), Average Collection Period (ACP) and Average Payment Period (APP) for all financial years under review. (6 marks)