Use the following data for Walgreens in years 11 and 12 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 12. Project the average inventory balance in year+1 and use it to compute the implied 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 rating: 100% (QA)

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