LO 10-2 10.5 Projecting Revenues, Cost of Goods Sold, and Inventory. Use the following hypothetical data for Walgreens in 2021 and 2022 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2022. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance. Walgreens (data in millions) Sales revenues Cost of goods sold Ending inventory 2021 $76,392 $54,823 $ 6,076 2022 $103,444 $ 76,520 $ 8,678
LO 10-2 10.5 Projecting Revenues, Cost of Goods Sold, and Inventory. Use the following hypothetical data for Walgreens in 2021 and 2022 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2022. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance. Walgreens (data in millions) Sales revenues Cost of goods sold Ending inventory 2021 $76,392 $54,823 $ 6,076 2022 $103,444 $ 76,520 $ 8,678
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 5QE: Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of...
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Subject : Accounting
![LO 10-2
10.5 Projecting Revenues, Cost of Goods Sold, and Inventory. Use the
following hypothetical data for Walgreens in 2021 and 2022 to project revenues, cost of goods sold,
and inventory for Year +1. Assume that Year +1 revenue growth rate, gross profit margin growth rate,
and inventory turnover will be identical to 2022. Project the average inventory balance in Year +1 and
use it to compute the implied ending inventory balance.
Walgreens (data in millions)
Sales revenues
Cost of goods sold
Ending inventory
2021
$76,392
$54,823
$ 6,076
2022
$103,444
$ 76,520
$ 8,678](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F646368ef-aafa-44b5-998c-6537b3fd0eec%2Fwxu9zfh_processed.png&w=3840&q=75)
Transcribed Image Text:LO 10-2
10.5 Projecting Revenues, Cost of Goods Sold, and Inventory. Use the
following hypothetical data for Walgreens in 2021 and 2022 to project revenues, cost of goods sold,
and inventory for Year +1. Assume that Year +1 revenue growth rate, gross profit margin growth rate,
and inventory turnover will be identical to 2022. Project the average inventory balance in Year +1 and
use it to compute the implied ending inventory balance.
Walgreens (data in millions)
Sales revenues
Cost of goods sold
Ending inventory
2021
$76,392
$54,823
$ 6,076
2022
$103,444
$ 76,520
$ 8,678
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