Use the following hypothetical data for Walgreens in 2014 and 2015 to project revenues, cost of goods
Question:
Use the following hypothetical data for Walgreens in 2014 and 2015 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreens's Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2015. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.
Walgreens (data in millions) 2014 2015 Sales revenues Cost of goods sold Ending inventory $76,392 $54,823 $103,444 $ 76,520 $ 8,678 $ 6,076
Step by Step Answer:
The data and computations follow Walgreens data in millions Year 2014 Year ...View the full answer
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Consider the following hypothetical data for the U.S. economy in 2018 (in trillions of dollars), and assume that there are no statistical discrepancies or other adjustments. Profit...
-
Consider the following hypothetical data for the U.S. economy in 2020 (in trillions of dollars), and assume that there are no statistical discrepancies or other adjustments....
-
Consider the following hypothetical data for the U.S. economy in 2020 (all amounts are in trillions of dollars). Consumption ...................................... 11.0 Indirect business taxes...
-
Determine the global extreme values of the function on the given domain. f(x, y) = 5x- 3y, y x-2, yz-x-2, y 3
-
What is the total charge of all the electrons in a 25-kg bar of aluminum? (Aluminum has 13 electrons per atom and an atomic mass of 27 u.)
-
Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2007 (in millions): other plant assets $767.2; land $193.8; patents and trademarks (at cost) $115.5;...
-
List four cash items that require special classification and disclosure. For each item indicate the required statement presentation.
-
The executive team at Current Designs has gathered to evaluate the companys operations for the last month. One of the topics on the agenda is the special order from Huegel Hollow, which was presented...
-
Write the equation of the line passing through P with direction vector d in vector form and parametric form. P = (1, 0), d= (a) vector form d=[] +t (b) parametric form (Enter your answers as a...
-
Wayne's Steaks, Inc., has a 9 percent, noncallable, $100-par-value preferred stock issue outstanding. On January 1 the market price per share is $73. Dividends are paid annually on December 31. If...
-
The potential difference between the two terminals of an AA battery (used in flashlights and portable stereos) is 1.5 V. If two AA batteries are placed end to end with the positive terminal of one...
-
It is easy to produce a potential difference of several thousand volts between your body and the floor by scuffing your shoes across a nylon carpet. When you touch a metal doorknob, you get a mild...
-
What is the distinction between the price of capital equipment and the rental rate of capital?
-
Which of the following is true of the following module declaration? A. The first line that fails to compile is line 1. B. The first line that fails to compile is line 2. C. The first line that fails...
-
Which of the following produces different output than the others? A. Stream.of ("eeny", "meeny", "miny", "moe") .collect (partitioningBy (x -> x.charAt(0) .get(false) B. C. .stream ( ) .collect...
-
How many lines does this code output? A. One. B. Two. C. Three. D. None. The code does not compile. E. None. The code throws an exception at runtime. 1: import java.util.*; 2: 3: 4: 5: 6: 7: 8: 9:...
-
Which is true about a service? (Choose two.) A. Changing the service provider interface always requires recompiling the service provider. B. Changing the service provider interface sometimes requires...
-
What is true about the -d option? A. It can be used with the jar command, but not the java command. B. It can be used with the java command, but not the jar command. C. It can be used with the jar...
-
What measures can companies take to combat cybersquatting?
-
Assume Eq. 6-14 gives the drag force on a pilot plus ejection seat just after they are ejected from a plane traveling horizontally at 1300 km/h. Assume also that the mass of the seat is equal to the...
-
a. Apply Porter's five forces framework to the specialty coffee retail industry. b. How would you characterize the strategy of Starbucks? How does Starbucks create value for its customers? What...
-
a. Identify the time at which Nike recognizes revenues. Does this timing of revenue recognition seem appropriate? Explain. b. Identify the cost-flow assumption(s) that Nike uses to measure cost of...
-
At a cost of $200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys $7,500 to conduct a title search and to prepare the required legal documents for the...
-
Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 40,500 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $729,000...
-
CALCULATE THE INITIAL COSTS, CALCULATE THE OPERATING CASH FLOW, CALCULATE THE TERMINAL NON OPERATING CASH FLOW, CALCULATE THE NPV . Initial Equipment $ 6 5 , 0 0 0 Project Life 3 Years Sales$ 5 5 ,...
-
A description of how each of the two management styles selected distinctively create organizational cultures. Describe the strengths and weaknesses of the two styles. Explain how these differences...
Study smarter with the SolutionInn App