Question

please soms one help me with this ? thanks

Corporate Discusion-Colgate-Palmolive v Available on Sunday, February 23, 2020 12:00 AM EST i Group/section restrictions. Must post first. Click HERE for Colgate-Palmolive's homepage. How do you get to their most current fiscal year end to answer these questions? Remember that the 10-K includes all of the financial data. Follow this thread after you click on the hyperlink. Investors=>SEC Filings=>Annual Filings (from group)=>10-K. The most current fiscal 10-K will be listed first. You may open the 10-K in different formats. I like the PDF, since it is easy to search. Answers to questions 1-4 are in Item 8. All numbers in the financial statements for Colgate- Palmolive are listed "in millions". Correct answers to questions 1-4 will have the amount AND "in millions". (This is the same as having multiplied the number by 1,000,000.) The formulas for ratios in questions 5-8 are in chapter 6 textbook and Power Point. Correct answers to questions 5-8 must include calculations, correct format for that ratio and rounded to two decimal places. Question 8 is extra credit.

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Answer 1

Q 1 & Q 2, Value of Inventory at the end of most current year current fiscal year (2019) and next to most current fiscal year (2018)

COLGATE-PALMOLIVE COMPANY - Notes to Consolidated Financial Statement

Supplemental Balance Sheet Information - Inventories by major class are as follows at December 31:

(Dollars in Millions)

	Current Year	Previous Year
Inventories	2019	2018
Raw materials and supplies	$                     305	$                     253
Work-in-process	49	37
Finished goods	1,056	960
Total Inventories, net	$                  1,410	$                  1,250
Non-current inventory, net	(10)	—
Current Inventories, net	$                  1,400	$                  1,250

Q 3 & Q 4, Value of of Cost of goods sold (cost of sales) at the end of most current year current fiscal year (2019) and next to most current fiscal year (2018)

COLGATE-PALMOLIVE COMPANY - Consolidated Statements of Income -For the years ended December 31

(Dollars in Millions)

	Current Year	Previous Year
Cost of goods sold	2019	2018
Cost of sales	$                  6,368	$                  6,313

Q 5, Inventory turnover ratio at the end of most current year current fiscal year (2019)

Inventory turnover ratio = Cost of Goods sold / Average Inventory

Inventory turnover ratio = 6,368 / [(1,410 +1,250) /2 ]

Inventory turnover ratio = 6,368 / 1,330 = 4.79 times

Q 6, Days of Inventory at the end of most current year current fiscal year (2019)

Days in Inventory = Ending Inventory / (Cost of goods sold / 365)

Days in Inventory = 1,410 / (6,368 / 365)

Days in Inventory = 1,410 / (17.4465) = 80.81 Days

Q 7, Inventory Cost & Cost of Goods sold increased by 10 % and Sales decreased by 2 %, Than Inventory turnover ratio

Inventory turnover ratio = Cost of Goods sold / Average Inventory

Cost of Goods Sold (after 10 % Increase) = 6,368 +636.8 = 7,004.8

Inventory value (after 10% increase in Inventory Cost) = 1,410 + 141 = 1,551

2 % sales will decreased, = 15,693 * 2% = 313.86

Cost of goods sold to sales ratio = 6,368 / 15,693 = 40.58%

If 2% sales will decrease (i.e 313.86) it will increase value ending inventory by 313.86 * 40.58 % = 127.36 ( assumed increase in cost of goods sold and decrease in sales will not impact purchasing / production)

revised ending inventory will be = 1,410 + 127.36 = 1,537.36

Inventory turnover ratio = 7,004.8 / [(1,537.36 +1,250) /2 ] = 7004.8 / 1,393.68 = 5.03 times

Q 7, Inventory turnover ratio at the end of next to most current year current fiscal year (2018)

Inventory turnover ratio = Cost of Goods sold / Average Inventory

Inventory turnover ratio = 6,313 / [(1,250 +1,221) /2 ]

Inventory turnover ratio = 6,313 / 1,235.5 = 5.11 times