The Home Depot is a leading specialty retailer of hardware and home improvement products and is the
Question:
The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. Assume in 2021 and 2022, The Home Depot invested in five new stores. The following table provides summary hypothetical data for The Home Depot.
REQUIRED
a. Use the preceding data for The Home Depot to compute average revenues per store, capital spending per new store, and ending inventory per store in 2022.
b. Assume that The Home Depot will add 10 new stores by the end of Year +1. Use the data from 2022 to project Year +1 sales revenues, capital spending, and ending inventory. Assume that each new store will be open for business for an average of one-half year in Year +1. For simplicity, assume that in Year +1, Home Depot’s sales revenues will grow but only because it will open new stores.
Step by Step Answer:
Financial Reporting Financial Statement Analysis And Valuation
ISBN: 9780357722091
10th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw