The 2015 annual report of the Procter & Gamble Company (P&G) is available at www.pginvestor.com. After reviewing P&G’s annual report, respond to the following questions:

a. When does P&G recognize revenue from its product sales?

b. Has net sales for P&G been rising or falling? By how much? Assume the growth in net sales realized from 2014 to 2015 will continue. How much will net sales be in 2016?

c. When does P&G recognize its sales discounts and sales product returns?

d. Calculate P&G’s receivable turnover ratio and receivable collection period for 2014 and 2015. Are these ratios improving?

e. Assume that P&G’s allowance for uncollectible accounts was \($180\) million at year-end 2014 and \($205\) million at year-end 2015. Calculate the ratio of the allowance for uncollectible accounts to gross accounts receivable for 2014 and 2015. Did this ratio improve? If so, what does that indicate?

f. Using your forecast of net sales for 2016 from question (b), and your 2015 receivable turnover ratio from question (d), forecast the balance of accounts receivable for 2016 (assuming that receivable turnover remains the same from 2015 to 2016).