Solution-Compute the implied ending inventory balance

Compute the implied ending inventory balance

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Reference no: EM131095514

Walgreens projecting revenues, cost of goods sold and inventory.

PROJECTING REVENUES, COST OF GOODS SOLD, AND INVEN- TORY. Walgreens is a leading chain of drugstores in the United States. Use the following data for Walgreens in Years 7 and 8 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreen's Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 8. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.

Walgreens (data in millions)	Year 7	Year 8
Sales Revenues	$53,762	$59,034
Cost of Goods Sold	$38,518	$42,391
Ending Inventory	$ 6,791	$ 7,249

Reference no: EM131095514

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Compute the implied ending inventory balance

Reference no: EM131095514

Reference no: EM131095514

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