Walgreens is a leading chain of drugstores in the United States. Use the following data for Walgreens in Years 7 and 8 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 8. Project the average inventory balance in Year +1 and use it to compute the implied ending inventorybalance.

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Walgreens (data in millions) Sales Revenues Cost of Goods Sold Ending Inventory Year 7 $53,762 6,791 Year 8 $38,518$59.034 $42,391 $ 7,249