Projecting revenues, cost of goods sold, and inventory use the following data for Walgreens in years...

70.2K

Verified Solution

Question

Finance

Projecting revenues, cost of goods sold, and inventory
use the following data for Walgreens in years 11 and 12 toproject revenues, cost of goods sold, and inventory for year +1.Assume that Walgreen's year +1 revenue growth rate, gross profitmargin and inventory turnover will be identical to year 12. Projectthe average inventory balance in year+1 and use it to compute theimplied ending inventory balance.
Walgreens (data in millions) Year 11 Year 12
Sales revenues $53,762 $59,034
Cost of goods sold $38,518 $42,391
Ending inventory $ 6,791 $ 7,249

Answer & Explanation Solved by verified expert

3.5 Ratings (579 Votes)

Calculating Sales revenue growth rate and projecting sales revenue for year 1 Sales growth rate Sales in year 12 Sales in year 11 1 59034 53762 1 1098061 1 98061 981 Sales revenue for year 1 Sales for year 12 x 1 growth rate 59034 1 981 59034 x 10981 6482523 Sales revenue for year 1 6482523 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Projecting revenues, cost of goods sold, and inventoryuse the following data for Walgreens in years 11 and 12 toproject revenues, cost of goods sold, and inventory for year +1.Assume that Walgreen's year +1 revenue growth rate, gross profitmargin and inventory turnover will be identical to year 12. Projectthe average inventory balance in year+1 and use it to compute theimplied ending inventory balance.Walgreens (data in millions) Year 11 Year 12Sales revenues $53,762 $59,034Cost of goods sold $38,518 $42,391Ending inventory $ 6,791 $ 7,249