Financial Reporting, Financial Statement Analysis, and Valuation: A STRATEGIC PERSPECTIVE 9e

10.5 Projecting Revenues, Cost of Goods Sold, and Inventory. Use the following hypothetical data for Walgreens in 2014 and 2015 to project revenues, cost of good:s sold, and inventory for Year +1. Assume that Walgreens's Year1 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. 2015 2014 $76,392 $54,823 6,076 Walgreens (data in millions) Sales revenues Cost of goods sold Ending inventory $103444 76,520 8,678